> I pay property taxes every quarter and I have just as much property as I started with.

But you don't have as many assets as you started with.

Your total assets are relatively liquid, divisible assets, like cash, combined with relatively illiquid, indivisible assets, like your house.

So instead of chopping off 1% of your house every year and giving it to the government, you give them the value of 1% of your house in cash.