Chris Briem has more on the Altoona land value tax and its connection to Pittsburgh:
But now that the election is past, it is safe enough to throw this up here.Not only did Pittsburgh have a two tiered tax for 85 years, but in modern times it strengthened the system. In 1979, former city councilman, and later US representative, Bill Coyne pushed the move from a 2-1 tax ratio for land vs. structures, to a roughly 5-1 ratio in the late 1970s.
Then a decade later it was former Mayor Sophie Masloff who fought to try and make the city more amenable to younger households by shifting the city’s tax base from what was a higher income tax on residents to more revenue from the heavily weighted tiered real estate tax. Yes, it was all about trying to keep young people in the city… sound familiar? Whether you like the tax shift or not, everyone liked the lower income tax idea and it was supported broadly… if not by everyone. As mayor Masloff was not trying to gut the city’s revenue and the idea was a tax neutral shift. No free lunch and a lower income tax meant a higher real estate tax.
In what has to constitute one of the greater acts of political courage in Pittsburgh history, Mayor Masloff went to bat fighting for the higher real estate tax part of the package deal. In the end she partially won. The real estate tax was raised, but not by enough to really make the deal revenue neutral. I personally think the resulting gap that was created lead to the structural deficit that lasted through the 1990s with an immense number of repercussions we live with today. But the crescendo of the political fight came when it was time to raise the property tax. A remarkable piece of city of Pittsburgh political and economic history is embedded in a video captured and retained by Pittsburgh’s Georgist in chief Dan Sullivan. (h/t to Jon Geeting for bringing this to our attention a few months ago)