Homestead exemption on property tax. In some states, property taxes are set by law to be astonishingly high unless the owning entity lives on the property for more than half the year. That owning entity can then legally claim the homestead exemption on their property taxes which reduces the tax owed by a specific amount. The owning entity can only claim the homestead exemption on (at most) a single property.

Property taxes cannot be set too high in some areas, though. For example, it is pretty common in Minnesota for families to own a primary home in the big metro areas and a second vacation property in northern Minnesota on a lake, to the point where it is basically an institution in Minnesota. It also has a very positive effect on the tourist economy in northern Minnesota. Since families cannot claim the homestead exemption on the vacation properties, property taxes cannot be set too high otherwise the tourist economy would collapse, so the city, county, and state administrations need to walk a fine line on non-homestead property tax amounts to prevent institutional investing in homes while still enabling families to own vacation properties.

A tax on the speculative portion of the home (land).