Friends of the Rochester Public Library hosted a presentation on land value taxation and a discussion with Joshua Vincent, executive director of the Henry George Foundation of America, yesterday.

The foundation is a think-tank for the study of economics and LVT. Vincent has worked with more than 75 cities to study the impact of a conversion from the standard form of property taxation to LVT.

The typical municipal property tax levies a lower value on land and puts a greater value on the improvements to the land, such as building a home or an office building.

LVT works in reverse. There is a higher flat tax placed on the land, and in most cases there is no tax placed on the improvements.

Advocates of LVT argue that the standard property tax has many disadvantages, and is at least partly responsible for urban decline, sprawl, and businesses leaving cities.

The examples they give can be quite convincing. For instance, under the standard property tax system, owners of vacant land and deteriorating properties are rewarded for allowing their properties to remain run down.

And they contribute less to the city's tax base while they cause urban blight - ultimately another cost to taxpayers.

And those property owners who do restore older properties or make expansions to existing properties are penalized with higher assessments.

Most of the conversions to LVT in the US have occurred in Pennsylvania. Harrisburg and Pittsburg have converted to LVT, and their comebacks have been credited to the switch. Philadelphia is about to make the shift, which would make it the largest city in the US to convert to LVT.

Vincent argues that many of the same conditions that impacted PA's rustbelt cities still plague Buffalo and Rochester.

"Rochester has backed itself into a corner in its tax policy," Vincent says. "No one wants to shut down services. But every year city governments in New York are chasing more tax revenue from fewer and fewer people."

Vincent will be meeting with members of City Council today at 4 p.m. It should be an interesting meeting, since some Council members are already convinced that LVT would not work here.

Despite the mayor's ongoing concern about closing revenue gaps and obtaining more state aid from Albany, there were no city officials at yesterday's public discussion with Vincent.

Information: www.urbantools.org.