So wrote one of the original robber barons of the early nineteenth century. Yet almost 200 years later, the idea of holding land as a road to riches is alive and well in New York City. Though, of course, owning land is not so bad when the owner also uses it productively, provides employment, or builds affordable houses. But owning ground to make money on it while doing nothing to it is a problem New York doesn’t need. In 2022, New York City is facing a new onslaught from the financial sector and their hedge fund billions. The city is enormous––700 square miles. But under the current cruel system, struggling families and small businesses have the nearly impossible task of finding a decent location to live or do business.

Imagine speaking to a Mayor and City Council. They accept the idea of a two-rate land value tax (LVT), meaning a higher tax on land assessments and a lower tax on building assessments. They agree LVT is a worthwhile change. However, keep in mind that the city will raise the same revenue as from its current one-rate property tax.

“Statutorily exempt” is the term used to describe owners of land and buildings who, by virtue of their identities, are not required to pay property taxes.  Their holdings are still assessed like everyone else’s but no bill is ever generated, despite the fact that they benefit from the same tax-funded amenities (like schools, roads, and public services) as everyone else.  So while an organization’s tax exempt status may feel like a foregone conclusion, their savings aren’t actually free.  As part of its commitment to transparency in taxation, CPTR explores the specific implications of tax exemptions for cities and towns across the country.  This report is focused on the City of Roanoke, VA.