Applying a tax commensurate with income-earning potential is the usual explanation.

Given the wide range of possible incomes to various professions, this can be problematic. Your $7.25/hr federal minimum wage worker ($14,500/year) competes against a $290k/yr SV tech worker, with 20x the income. Unless that's mitigated by other factors (residence size, amenities, etc.), a land tax might prove further discriminatory.

But in general, a tax that's sufficient to kill the prospects of real estate as simply a bankable nonproductive asset would be a net benefit.

That could be alleviated by having the owner provide proof that they live on the property they own, and then granting them an exemption.

Half-exemptions for rent-seekers who can prove 90%+ occupancy.