Land value tax is a property taxation approach that taxes land based on its value while reducing or eliminating taxes on buildings and improvements. Unlike conventional property taxes that assess both land and structures together, land value taxation focuses solely on location value. Proponents argue this approach encourages development of vacant or underused land, reduces urban sprawl, and removes penalties for improving properties. While no Canadian municipality has fully adopted land value taxation, some jurisdictions have experimented with split-rate systems taxing land at higher rates than buildings. The concept remains a topic of discussion in municipal finance reform.