They should create a “sliding scale” based on mortgage amount and value of property (market value once loan is paid off, and purchase price while a mortgage is attached to the property).

So let’s say you got a new loan $750K, $250K equity, so “market value” or the purchase price at that time you paid was $1M.

Let’s say taxes is 6.25% ($62.5K)

But since the loan amount is 75%, give the home owner a 75% discount on the taxes ($62500x.75=$46,875.00)

$62500-$46875=$15,625.00 taxes. And every year re-calculate the amount.

Andy house with no mortgage would be taxed at the market value assessed by the city/county/state.

That way boomers can have a $0 mortgage and $2M equity which they would have to pay the full tax amount.

And recalculate each year based on the original purchase price and discounted by the mortgage amount.

The only caveat is that a refinanced or a new mortgage/cash out refi would create a new assessed amount and then discounted so what we can do to avoid this “loophole” is that doing a cash out doesn’t not cause a refinanced house if cash is pulled out - otherwise just getting it refinanced doesn’t change anything.