Oh this definitely needs extra tax in areas with limited supply. Unoccupied property ? 1% tax per month. Rent it or sell it.

That’s one approach, but then you get people playing with the system, adding a single apartment to the multimillion dollar lot, or the aforementioned parking lot (technically a business). The great thing about LVT is that it bypasses these shell games. The biggest weakness is that you have to fight off any attempt to seize control of the valuation process, and that is going to be difficult except in places with highly engaged and intelligent voters.