It forces landowners to account for the opportunity costs they impose on society by not utilizing the land optimally, even if (and especially if) those costs change over time.
As grandparent said, every tax causes this kind of incentive. So people thought long about what was the least worst of all the options and came up with LVT and similar ideas. They cause the minimum harm to the economy and have the least side effects and "unintended consequences"
But more importantly, the part where you speak of "state taxes" makes me think you have no idea what you're talking about, since the original idea of Henry George was to distribute the LVT in the form of a citizen's dividend, equally among every person regardless of any criteria. A prescient form of UBI if you will.
As of the time of writing we do pay taxes on land as well as taxes on labor, taxes on commerce, taxes on investments, taxes on inheritance, taxes on imports, taxes on value added to goods, sin taxes, tax stamps for government services, taxes on energy, taxes on roadways, taxes on gifts, taxes to enter or leave airports, and even taxes to live in certain cities. In the US these did not exist until after the civil war and since then they've become the rule and not the exception, to repeal all of them and replace them with a LVT is great, but to expect the modern state to not feature creep every single one of the current taxes back in place within a few decades gives me a huge pause.