zlacker

That's a fair point. It's definitely pretty different from an unrealized capital gain because, like you said, it's not about your net gain or loss on the house. But, I'd still say that it's practically similar enough to a wealth tax precisely because it's a tax based only on the current value of the thing that I own.

Also, just to add to the above discussion, it's even worse in practice than a tax on unrealized gains because I'll have to pay the same amount of tax every year if my house stays the same value. If it were a tax on the unrealized "gains" of my house, I'd pay $0 if it stayed the same value. And if the value of my house decreases, I'll still have to pay more than $0 in property tax, whereas a capital loss would mean I would pay at most $0.

So, I think I still stand by my sentiment that property taxes are more burdensome than a tax on unrealized capital gains.