The thing to understand about the LVT is that we are pretty much all already paying it; not to the city in which we live, but to the previous owners of the land we live on. When we buy a house, we have to pay the previous owner a certain amount for the land. That amount is the present value of the expected income stream that could, hypothetically, be realized by renting out the land. Divide by the number of months in our mortgage term and multiply by the interest rate, and the result is our effective monthly LVT.

All George is saying is that that money should be going to the city (or other controlling locality) instead of the previous owner, because it's the city that created the value in the first place.