Is it basically saying to tax land that has productive assets? Like if you have land that has a factory, you're paying taxes, but if you have land with a house, you're not?
Otherwise by taxing land based on what’s on it, it negatively incentivizes improving it. The nicer my home gets, the more my taxes go up.
If you build something that makes my land valuable, I get taxed more.
I like the incentive structure, but I think part of the incentives are towards collectivization so you and I become one unit, which may or may not be a good thing.