L = land value
R = rental value
X = resultant land price
t = tax rate as % of resultant land price
i = interest rate
R = i L
R = i X + t X
i L = (i + t) X
X = i L / (i + t)
Fraction of rent collected = t X / R
= t [i L / (i + t)] / [i L]
= t / (i + t)
Resultant land price as fraction of land value = X / L = i / (i + t)
