Your assumption on the local people owning million dollar homes being able to afford higher taxes is wrong. I paid $325,000 for my home many years ago and that same home is worth over a million due to the location I chose to live.  The only way I would be able to realize the resale value of the house is to sell it and move out of state. I do not even consider that option. As I get closer to retirement, paying higher taxes on inflated prices may not be an option without a reverse mortgage, therefore denying my children the possibility of eventually owning the family home. They have been living in rentals and lower priced condo units since becoming responsible adults. This does not sound like a reasonable tax increase for many in my situation.