Rent IS taxed if for individual domicile purpose (e.g., use as a residence). The landlord would collect the tax and be paid for doing so. In effect the renter is "consuming" the use of the property by renting (or you can think of his renting it as consuming the service of providing shelter, I suppose).
A business rental of, say, an office for normal business purposes would not be taxed.
Thanks. I was hoping one of you guys would show up.