Definitely! This was the most line of reasoning in the article with the most impact. Property taxes are often progressive, disproportionally affecting the relatively wealthy. That's good. But when the benefits are collected and spent too locally, it means areas with higher property values also get better services. It takes away the progressive quality of property taxes.
Continue this to an extreme: property taxes that I pay are only spent on my household. The city/county maintains my property, educates my children. There's no more progressive distribution.