> Burning down an apartment building doesn't change what could be done with the lot; an appropriate valuation method for LVT would not give a different valuation for the land depending on what is built on it.

True, but an LVT is a cost. Changes in cost can change what is financially viable to do with a property, regardless of what is currently done with the lot, and thus can impact the land value.

Actually no, land value tax is not a marginal cost so does not change the profit maximizing use of land.

The idea of cost-plus pricing is folk economics.

Tax incidence is very well understood in economics and has to do with relative supply and demand elasticity (supply of land is perfectly inelastic) and marginal costs which land value tax does not touch.

It's accurate to say LVT changes the price of land. But it doesn't change the profit maximizing productive use of land.

Other taxes that scale with production (sales tax, income tax, property tax) do change profit maximizing productive use.