Oxfordshire Land Value Tax Study

The Oxfordshire Land Value Study was carried out in 2004/5. The aim was to carry out a valuation on a sample area to demonstrate

(a) how practical LVT would be and

(b) how the resulting values would compare with the present system

A working party was set up on a cross-party Labour/Liberal Democrat/Green basis, following an initiative by Brian Hodgson, then Leader of the Labour Group on Oxfordshire County Council. The Vale of White Horse District Council was invited to join the study, and their Leader, Paul Bizzell, and officers from the Vale joined the working party, along with Mr Tony Vickers, an expert in Land Value Tax (LVT), and Mr Robert Kane, a professional valuer. Conservative colleagues were invited to join the working party, but chose not to.

The study was carried in the Botley area of the Vale of White Horse District, because of its mixture of suburban and rural areas and agricultural and high-tech economies.

Having established the land values on the study area the working group proposed to calculate the impact of LVT on the different types of land-holding to raise overall a sum equal to the total current yield of Council Tax and National Non-Domestic Rate (NNDR/Business Rates). Other calculations could seek to establish the total amount of revenue capable of being raised from the area; the same calculations but excluding agricultural land; and any other calculations which might be suggested.

It was agreed by all parties that the data resulting from the study is the property of VOWH and will be available to academics and professionals as a resource for further study.

The conclusions that have been drawn by the working party are:

(a) Valuations based on the undeveloped value of the land present no special problems to a professional valuer.

(b) The lack of definition of agricultural land at the present time would need addressing if agricultural land is to be included.

(c) The increasing availability of well-developed Geographical Information Systems (GIS)and other IT developments have the potential to make all property tax administration and land use planning easier and cheaper.

(d) The initial valuations would be no more expensive than, for instance, the planned revaluation of Council Tax. Thereafter the system would be simpler and cheaper to maintain than those based on developed values.

(e) Further consideration needs to be given to the choice of basis for valuation, i.e. capital or annual rental values.

(f) The shift in tax liability between different categories of property would probably need a period of phasing in.

(g) Further study on the effect on levels of domestic tax if the high value business sites in central Oxford were included in a countywide LVT would be welcome.

A copy of the full report is available to download below.

Oxfordshire Land Value Study Report.

Other Information on Land Value Taxes

The Labour Land Campaign.

The Liberal Democrat Action for Land Taxation and Economic Reform group.

The Green Party Land Value Campaign.