How is this different from just having higher taxes on capital gains? (Obviously higher capital gains taxes would also impact other assets, but I mean in the context of land. Seems like both result in the same effect if you're able to defer LVT until sale.)

> How is this different from just having higher taxes on capital gains?

The goal of the deferment is to stop a negative outcome (the resident being forced to sell their property because of higher LVT taxes) from occurring until the resident actually wants to do so.

Seems like a huge risk, what if the land then deprecate after appreciating for a while? You'd owe a lot of money from the appreciation years, but the sale of the house doesn't cover it because it's now depreciated