So you are taxing an owner of a rental on their total income rather than the income they earn on the property?
This is so badly thought out.
It seems wrong to me to make someone pay tax where they do not live. It's not like the owners of rental homes are the people who use the city services -- the people who live in the homes do, and they should pay for them.
Another hack. Buy the biggest parcel you can find. Then you can build a huge home and pay the same taxes as the 800 square foot bungalow. Build a bunch of huge vacation homes. The help have to pay for the services. You don’t.
Yet another hack. Build a house and rent it out on AirBnB. That way you only pay the parcel tax and NO ONE pays the income tax. Genius. It’s a discount to run an AirBnB. Better raise the hotel tax to compensate.