In the most basic sense, land value tax would mean that the tax would be the same whether your land was just sitting there empty or you had a hundred-story skyscraper on it.

I don't know what that effects it would have. I assume the first and most direct effect would be budget shortfalls in local governments which would probably try to create more fines[0] and sin taxes (assuming they are still legal).

[0] LA has an almost $200 fine for jaywalking. I'd argue that fines and confiscated money from drugs should never go into general treasury much less directly used to fund the department collecting such fines and confiscations. Our government should run on taxes alone and not on fines and fees. http://www.nytimes.com/2013/12/26/us/in-a-car-culture-clash-...