My assumption for an LVT is that the tax is based on the value of the land sans any improvements the landowner has made to the land. This would thus exclude from the tax an increase in value due to you discovering oil or you building nearby, but include in the tax any increase in value due to your neighbours discovering oil or building on their land.
That said I don’t know how this would be calculated in practice, especially once we get to more complicated cases (a business I’m a minority owner of discovers oil on my land, I split my plot of land into 2 and sell them to 2 different people, etc.).
On the other hand, most taxes have all sorts edge cases too, and whilst they’re problematic, we muddle through them. I doubt that this couldn’t be muddled through in a similar way.
My assumption for an LVT is that the tax is based on the value of the land sans any improvements the landowner has made to the land. This would thus exclude from the tax an increase in value due to you discovering oil or you building nearby, but include in the tax any increase in value due to your neighbours discovering oil or building on their land.
That said I don’t know how this would be calculated in practice, especially once we get to more complicated cases (a business I’m a minority owner of discovers oil on my land, I split my plot of land into 2 and sell them to 2 different people, etc.).
On the other hand, most taxes have all sorts edge cases too, and whilst they’re problematic, we muddle through them. I doubt that this couldn’t be muddled through in a similar way.