Vacant land refers to parcels without buildings or significant improvements, including undeveloped lots, cleared sites, and land awaiting development. Vacant land assessment and taxation policies vary—some jurisdictions assess vacant land at full development potential, creating holding costs that encourage development, while others assess based on current (unimproved) use. Vacant land in developed areas may indicate market dysfunction, land banking, or development challenges. Municipalities sometimes implement higher tax rates on vacant land to discourage extended vacancy and encourage development. Conversely, vacant land in areas without services may be appropriately awaiting infrastructure. Vacant land policies must balance encouraging development, protecting property rights, and recognizing legitimate reasons for undeveloped land.