Comment by jrmg

To keep tax revenue equal, property taxes for those who purchased recently would go down, and property taxes for those who’d purchased in the past would go up.

The housing market would become more liquid because people would move out of homes if their values rose too much and they could no longer afford the taxes. This would be a shock initially, but over time it would just be seen as part of life like it is in other areas: mostly, empty nesters would downsize to a cheaper, smaller house with lower taxes. Gentrification might be more problematic though.

In practice, probably some phased rebalancing would have to happen to avoid the sudden economic shock, but, politics notwithstanding, it’s not crazy to suggest it could be done and that the end state might be overall ‘better’ for most people. The end state would be how property taxes work almost everywhere else.