Re: LVT and the Severance Tax

>The Severance Tax is intended to claim "The Entire Future Rental
>Value" of the Natural Resources extracted from rented land up front.


>1- How is this amount supposed to be measured?

No, the current market value of the resource minus whatever it takes to
extract said resource.

Another way to think about it is that the total land value, in reality,
has two components - the value of the land itself (i.e., site value)
and the value of the resource contained beneath the land. Extracting
the resource lowers the total land value by an amount equal to the
value of the resource. The severance tax compensates for this.

.

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