This is the same effect that we saw with localities that repealed their gas tax to provide relief to drivers in the face of rising gas prices due to the US attacks on Iran -- the price rose to match the cost including the tax, so government revenues went down, corporate profits went up, and the public gets no relief from high prices

And the relief for homeowners provided by lowering property taxes may counterintuitively make housing less affordable. A 2024 study led by researchers from the federal government and Yale University found that property tax reductions in Georgia led to home price increases. The cuts enticed prospective buyers into bidding wars and encouraged homeowners to hold onto their properties longer, lessening available supply. The rising prices particularly harmed younger, prospective first-time homebuyers while disproportionately benefitting older residents who had owned their homes for long periods, the researchers determined.

Similar generational disparities have long played out in California because of Proposition 13. A Los Angeles resident who has owned a home for 50 years that’s now worth $1 million pays less than $500 annually in property taxes. Yet if their neighbor spent $1 million to buy the house next door last year they would owe $10,000.