No, it’s not false. It’s the fundamental characteristic of LVT. There is no separation of the hypothetical and actual.

> Let’s say you buy some farms in the middle of nowhere for 10k/acre and put a theme park on it. Your LVT taxes are in theory unchanged, though depending on how it’s calculated the value of land around that property increases because it’s near a theme park. Then your LVT increases when people start to build hotels etc around your property.

Right. That’s the point. You buy land and the taxes are such that you must improve the land or otherwise produce economic value to be able to hold it. As land around the theme park becomes more valuable taxes eventually go up and then the economic value of the park must continue to increase in order to support the taxes (at the same profit level).

> What’s interesting about this model is your incentivized to develop land as a single unit. A sports stadium with associated shops and hotels is valued as if none of it was there, but split it up and each pays more due to proximity to other businesses.

I’m not following this very well. I think it makes you think more holistically, but I am not tracking well that building a sports stadium and shops and hotels would cause the value to be as though nothing is there. Can you elaborate? I would think that someone developing the parcel to include all of these things would be doing so to decrease risk, increase economic engagement so they can afford taxes at a specific, desired profit level.