So what happens when someone owns land, and then has a bunch of neighborhoods and developments pop up around them? I know a lot of poorer people who bought their home when the area wasn't developed, only for things to spring up around them. That would increase their land value, sure, but also their tax, and I don't think that's fair.
It feels like a way to force these people out of the towns and family homes they've grown up in, in favor of some rich guy or corporation. They can be strong-armed out by increasing their property value around them past a point they can afford the taxes.
If someone is lucky enough to win the lottery by buying a pot of land for cheap and then seeing its value rise astronomically, they would be given the option to defer their tax payments until the sale of their profit when they realize their gains.
Obviously, there is still a large incentive for them to move sooner rather than later, but they would not be forced out of their home. I think this would be much fairer than the status quo as it would increase the incentive for them to move.
Ultimately, it is not an efficient use of land to have someone keep their single family home in the middle of high-rises like you see in the movie up. We've got a homeless crisis and random parking lots or low density is making it worse. There needs to be a compromise here. Deferred payments lets you balance the scales in a way that would be fair to all.
It feels like a way to force these people out of the towns and family homes they've grown up in, in favor of some rich guy or corporation. They can be strong-armed out by increasing their property value around them past a point they can afford the taxes.