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Henry George Foundation
Henry George Foundation,Henry George Foundation

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Endorsement

"Removing almost all business taxes, including property taxes on improvements, excepting only taxes reflecting the marginal social cost of public services rendered to specific activities, and replacing them with taxes on site values, would substantially improve the economic efficiency of the jurisdiction."William Vickrey, professor of economics and Nobel Laureate

 

Eight Nobel Laureates in Economics have endorsed a tax on land values rather than on production.

 

LVT Jurisdictions and Rates

In Harrisburg, the tax on improvements is only one sixth the tax on land -- many economists credit the "Renaissance" of Pittsburgh over the last two decades to Pittsburgh's shift to Land Value Taxation in 1978. Towns as small as Steelton (pop.2,500) to as large as Allentown (pop. 105,000) have used LVT successfully in Pennsylvania.

LVT has worked where tried.  Many issues that seem unrelated can be ameliorated or solved by LVT.  Traditional taxes such as property taxes, sales taxes, and income taxes, can be shifted with little downside and much to be gained from a revitalized local to global economy.

Jurisdiction

Land Tax Rate(mills)

Bldg. Tax Rate(mills)

Tax Ratio

Property Tax Rate(mills)

Year Established

Current as of

Source

Aliquippa School District

188.000

29.500

6.3729

60.530

1993

2009

Aliquippa school district admin. office

 

Aliquippa, City of

 

81.000

 

11.400

 

7.1053

 

24.900

 

1988

 

2009

 

DCED[1]data (corrected)

 

Allentown, City of

 

50.380

 

10.720

 

4.6996

 

17.520

 

1997

 

2009

 

DCED data

 

Altoona, City of

 

185.860

 

6.890

 

26.9753

 

30.000

 

2002

 

2009

 

DCED data

 

Clairton, City of

 

28.000

 

2.220

 

12.6126

 

7.500

 

1989

 

2009

 

DCED data

 

Clairton School District

 

75.000

 

3.100

 

24.1935

 

22.000

 

2006

 

2008

 

DCED data

 

DuBois, City of

 

89.000

 

3.000

 

29.6667

 

18.370

 

1991

 

2009

 

DCED data

 

Duquesne, City of

 

19.000

 

13.470

 

1.4105

 

8.050

 

1985

 

2009

 

DCED data

 

Ebensburg, Borough of

 

27.500

 

7.500

 

3.6667

 

10.500

 

2000

 

2009

 

DCED data

Harrisburg, City of

28.670

4.780

5.9979

9.630

1975

2009

 

DCED for two-rate; flat rate in-house

 

Lock Haven, City of

 

16.260

 

2.950

 

5.5119

 

6.289

 

1991

 

2009

 

Generated in-house

 

McKeesport, City of

 

16.500

 

4.260

 

3.8732

 

7.000

 

1980

 

2009

 

City Controller

 

New Castle, City of

 

27.791

 

7.856

 

3.5376

 

11.726

 

1982

 

2009

 

DCED data

 

Pittsburgh Improvement District

4.374

N/A

N/A

N/A

1997

2009

Phone call to office

 

Scranton, City of

 

103.145

 

22.432

 

4.5981

 

28.500

 

1913

 

2009

 

DCED data

 

Titusville, City of

 

53.510

 

13.35

 

4.0082

 

18.333

 

1990

 

2008

 

DCED incorrect; PT & BT sample

Washington, City of

100.630

3.500

28.7514

21.620

1985

2009

 

 

DCED incorrect; 2009 numbers reported from city

 

 


 

[1] PA Department of Community Economic Development (DCED) Municipal Statistics Tax Reports(http://munstatspa.dced.state.pa.us/Registers.aspx)

 Updated rates current as of November 2009

 

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