Strong Towns promotes land value tax (LVT) as aligning incentives for both cities and individual actors. However, the value of land is impacted--positively or negatively--by the city's surroundings: natural features and proximity to economic opportunities increase the value, while locally-undesirable land uses (prisons, power plants, solid waste facilities) lower land value. How can LVT be adapted to provide more equitable revenue for all of our cities?
Consider the example of Medina, the waterfront community across the lake from Seattle, inhabited by some of the richest people in the world, infamous for its revenue shortfalls, primarily due to a 1% limit on property tax revenue growth and a lack of sales tax revenue. LVT would be an obvious solution to Medina's financial woes, but this would be inequitable to other communities: much of the value of its land is a result of its proximity to beautiful waterfront and its proximity to Seattle.