[kemitche]

Why would there need to be a carve out for home/auto loans?

1. No one really borrows against the value of their (paid off) car. 2. Property taxes already, generally, are against the assessed value of the home, so it's already happening for that case. There are some minimal exceptions, like CA Prop 13, of course, but generally speaking, if I want to take out a second mortgage or something, my home's value is already appropriately "stepped up."

[nemothekid]

I guess I'm not sure how this mechanism would work without being abused. I assumed when I take out a car loan, the bank is giving me money, in which the collateral is the car or home.

But I now assume the tax would be on the assessed change value of the asset, for which a new car or home would be 0, so no tax.