It SEEMS like a good idea, but I think the problem with it is tax burden is likely not the only reason for a lack of development.
Look at it this way. Say you own land now that you’re paying, for example, $1000 per year in taxes on. Next year, because of this law, it’ll be $2500. The hope is that you will either develop or yourself or sell it to someone who will.
Even if the owners just keep sitting on that land, the tax increase on it should make up for the revenue lost on property where taxes have dropped. If it works though, then the tax base should grow as should the economy due to the new construction, homes, and businesses.
Look at it this way. Say you own land now that you’re paying, for example, $1000 per year in taxes on. Next year, because of this law, it’ll be $2500. The hope is that you will either develop or yourself or sell it to someone who will.
Even if the owners just keep sitting on that land, the tax increase on it should make up for the revenue lost on property where taxes have dropped. If it works though, then the tax base should grow as should the economy due to the new construction, homes, and businesses.