Its price would rise to that comparable to a "new" house that was taxed. (Or the comparable "new" house price would fall). It does not matter whether a tax is collected on it or not.
The tax is not collected on its resale to another individual.
Its price would rise to that comparable to a "new" house that was taxed. (Or the comparable "new" house price would fall). It does not matter whether a tax is collected on it or not.
In which case you would still be made whole as the seller, by receiving the full amount ( market of equivalent new with tax).
What you miss in this is that in the scenario you suggest, it is not government receiving a tax, it is you the owner/seller receiving the fair market value including amounts equivalent to the tax in a newsale situation.
Hence your entire scenario of a loss due to double taxation of a resale residence disappears entirely.