ABSTRACT
In the modern conception of land property, economic land value is conditioned by two broad institutional factors. The first one is the property rights system. The second institutional factor is public policy. The point is that value creation on land is widely conditioned by public planning and action, and tightly intertwined with the property rights system. The main value capture instrument of Swiss land policy is the tax on added land value created by zoning. In Switzerland, as opposed to the tax on added land value, land service taxes are conceived as value recovery tools. The land property tax taxes annually the value of plots. In fact, 20 years after canton Bern introduced the tax on added land value, only 18 communes in the region had implemented the tax in their building regulations. The definition of the extended land service tax in canton Vaud's legislation occurred in 2011.
