“Site Value Taxation on Australia: Where Land Is Taxed More and Improvements Less, Average Housing Values and Stocks Are Higher”, 1984-10-01 (; similar):
Site value taxation is neither a new nor a strictly western concept. Taxing land based on location was proposed in India around 300 B.C. François Quesnay, David Ricardo and John Stuart Mill were among the economists favoring land taxes but Henry George is credited with bringing it about in several areas, notably Australia.
That subcontinent has experimented with the land tax on the national as well as the state and local levels but it is presently used only on the latter 2. Empirical tests of the tax instrument are few. 1977 forecast that eliminating the tax on improvements would increase investment levels by about 25% in the long run. 1963 found great differences in house values and stocks.
This study evaluates the effects of site value taxation on the basis of multivariate regression analysis.
It finds strong evidence that, where improvements are relieved of taxation and more revenues are obtained from land values, the average value of housing is statistically-significantly higher and the value of the housing stock substantially larger.