That part of land value which reflects value from the surrounding public infrastructure such as public services and roads. It is the basis of rating and taxing on land or unimproved values only. Under Henry George's theory on taxation, the unearned increment only is taxed (unimproved or land value) because it is not a discentive for improving the land. This concept encourages economic development.


Henry George
rating and taxing
unimproved value.