Garden tax succeeds where others fail

Published on Saturday 26 April 2008 19:48

THERE are many misunderstandings about land value tax, but as far as I know "garden tax" ('Size will matter as Greens plant the seeds of garden tax', April 20) is a new one. In fact, gardens already have a lower market value than other land in towns unless there is planning permission for development, and would be taxed lower accordingly.

At the moment, if a landowner gets planning permission to build flats in a garden, there is a massive increase in the value of the land which is invisible to the tax system. Land value taxation would ensure the community got some return for the decision to grant planning permission, not just the landowner. What's more, land value tax is flexible and allows different rates to be set for different types of land. For instance, parkland or other valuable green space can be rated at zero, or even negative-rated, which means owners are effectively paid to protect it.

In practice, land value tax has a track record of boosting economic activity, as research shows. It makes it uneconomic to leave gap sites undeveloped, and discourages 'land banking' by supermarkets and others. It's fair and hard to avoid, and would be built on the first ever comprehensive register of land ownership. Local authorities can also use LVT alongside their planning policies to help shape the kind of sustainable land usage their electorates want to see.

Another misunderstanding is that this is a tax that is unfair to rural areas. In fact, the most recent figures for Scotland's land values show that the best arable land is worth around 82p per square yard. By contrast, the average price of urban land with permission for housing development is 179 per square yard.

Last week Parliament agreed that the Council Tax must be replaced, and that any future system must take account of "fairness, local accountability, the need to reduce tax avoidance and the wider social, economic and environmental impact of any proposed system of local tax reform on communities across Scotland". I believe that a land value tax is the best way of fulfilling those objectives, and that neither the current Local Income Tax proposals nor Council Tax can do so.

Patrick Harvie MSP, Scottish Green Party

I WONDER who are these Marxists in green clothing who wish to introduce a tax on gardens? The Green Party claims to care for the environment. Gardens are important as consumers of carbon dioxide and producers of oxygen. This is even more essential in urban areas. Apart from that, urban gardens have become a sanctuary for the residues of urban wildlife. What do the Greens wish to create? A sanctuary for developers, a concrete jungle? Are the profits of the building trade more important than clean air?

To develop derelict land (best of all into parks or playgrounds/sport facilities for children) makes common sense. To force gardeners to sell their land to builders does not. However, the calculations featured in Scotland on Sunday indicated that it would become impossible for owners of large gardens to sell their houses even if they would be forced to because they would not be able to meet the tax burden. Most possible buyers would not be able to meet the tax burden either, so who comes as a buyer? A developer.

Dr Paul Millar, Edinburgh

THE debate that a Local Income Tax should replace Council Tax continues. However, politicians and the public seem to have ignored or were unaware of another punitive tax.

I refer to water and sewerage charges, which are collected by the local authority and then remitted to the water authority. This tax is disproportionate to the ability to pay or the household income.

My combined bill is 548. A household with only one person receives a 25% reduction thus pays 411. However, the per capita cost for a household with four people is only 137. Similarly, if there are six people then this drops to 91.

I consider that the single person, who could be a pensioner, is unfairly treated against a household with several wages earners.

Clark Cross, Linlithgow