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Why would a land value tax decrease the benefit landlords accrue from municipal service improvements?

We already have a property tax, and the only difference between a land value tax and property tax is that it favors one type of landlord (the ones who develop their land) over another.

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To the extent that municipal service improvements increase the utility provided by housing in the area, landlords are able to collect more rent from tenants (not necessarily from the same tenants -- new tenants with more buying power will be more interested in the area after municipal services improve). Since that increase in utility for tenants is derived from the location of a lot rather than what's built on it, the value of the land itself increases while the building remains unchanged. So taxing improvements can't recapture the utility increase the way that taxing land can.

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