Land is what should appreciate, not the building built on top of it, which should deprecate. What make land valuable is the collective work and contribution of a community.
However, since lands are scarce and a collective effort to maintain, maybe it should be taxed for the benefit of the community and rewards given to the people who put it to the most valuable use, by not taxing buildings and other improvements built upon it.
> Land is what should appreciate, not the building built on top of it, which should deprecate.
That’s not entirely true. A home structure is worth what the materials + labor - depreciation are worth. A home can depreciate far more slowly that the cost of labor and materials rising. Not to mention that renovations will occur over time essentially removing some depreciation and adding to labor + materials to build a similar structure.
A well maintained home should hold its value well over time.
However, since lands are scarce and a collective effort to maintain, maybe it should be taxed for the benefit of the community and rewards given to the people who put it to the most valuable use, by not taxing buildings and other improvements built upon it.