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Yes -- taxing on the estimated full value of the property is a very common thing. Almost universally the case in the US as well. And you can use previous sale values and assessments to try to get what seems to be a market valuation.

Two problems though. One is that this is very anti-Georgeist; the main idea with the school of thought is that you should not be penalized for improving the land; you do not want counter-incentives to land improvement, because that's a net negative for neighbors and for society.

The other is that this process is very very very bureaucratic and corruptible. I can see for myself how this manifests in places I've lived because the estimated value for tax purposes is so wildly different than the actual sale price of real estate. I can't speak to NZ specifically as to how much of a problem this is and how it is addressed, but I'm going to go out on a limb and offer the hypothesis that it is poorly addressed and there is a big divergence between the estimates and the sale prices for real estate. Prove me wrong!




(Australia)

I received my notice from the land valuer general yesterday (for unimproved land value).

Looking at building costs for my area and what other houses are going for in the street, the valuation looks spot-on.




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