Actually, that part of it made sense. The intent was to attract business with low taxes. They would make their money off sales tax levied on transactions for others--much like cities love to tax hotel rooms. The problem is the numbers didn't work.
So property taxes are theft but sales taxes are not?
I'm not saying that. What I'm saying is that it is a logical thing as their business model was to make their money off sales tax that mostly applied to outsiders. It's just the tax-somebody-else scheme writ large.
The problem is they didn't want to spend the money upfront needed to make it work.