There can’t be a margin of error because there is no dollar value inherent to land (or anything). Margin of error compared to what?
People attribute different values to the same property, which is not reflected in any sort of assessed value.
I’ll explain with a question: If I say a property is worth $30k and you say it’s worth $100k what should the assessed value be?
There's "intrinsic value" which is different from the "market value". I'm not very familiar with finance so I'm not sure if this is what you you're getting at.
But your idea, that land can't be taxed because it has no value, can't possibly be new as these questions have been around for literally hundreds of years. That being said, I've never heard it before and would be genuinely interested if you can link some papers or books.
If there is, then how would I calculate the intrinsic value of a piece of real estate, to levy a tax on it?
See https://en.m.wikipedia.org/wiki/Intrinsic_theory_of_value vs https://en.m.wikipedia.org/wiki/Subjective_theory_of_value