If tax is based on land improvement, a flat parking lot in a busy area is profitable, even if it doesn't provide optimal value to the community. The owner may wish to add some buildings to the lot, but land improvement tax means they have to pay extra to have and keep those buildings, even if a recession keeps them empty.
Land value tax flips this, removing some of the risk of adding value to a property while discouraging hoarding.
Land value tax flips this, removing some of the risk of adding value to a property while discouraging hoarding.