This is a great idea; however I propose an amendment to this.
People should be able to list their primary home as tax exempt.
Any additional homes, (vacation, Airbnb, rental locations, etc),
Should not be eligible for tax exemption.
Furthermore, offsets for the home land tax exemption, should be taken up by all remaining taxable land, with an increase to dormant, unused, undeveloped land, to deter people from purchasing land to keep as a future asset.
(Example: rotting decaying commercial properties in the rust belt.)
This would encourage people to sell land rather than to hold on to it.
It would enable faster development.
Local governments should also have the responsibility of purchasing unused land from individuals that wish to sell it to get out of the tax burden but can’t, at 50% under market value, (consensual eminent domain.)
The land could then be rezoned and redistributed to the market, at market minimum as needed with what’s desired.
That should cover federal financing, as well as produce profit for the local governments.
Commercial and luxury land, should not, and cannot be tax-exempt.
Condos, high rises, and apartment buildings, anything that exists within a H.O.A., should not be eligible for tax exemption.
state & local residency is prerequisite to Primary home exemption. Thus voting rights, etc.
Foreign nationals, illegal/legal un-naturalize immigrants (Visa holders) should never be allowed to own any tax exempt land. (If you wanna be here, then be here, all in, no dual citizenship)
On the contrary, they should be subject to increased luxury, comercial, and dormant land taxes.
If they choose to have offshore hedge investments, fine, but their going to pay for it. (Your roads and services will be well funded, they will foot the bill, allow them to.)