It means that all tax assessments will be shifted to the value of land. What happens right NOW when property taxes go unpaid?? The parcel is sold off at public auction.

Will the state seize my home?

yes

what happens when someone out-bid me for a land on which my home is?

they get a deed for the land. It's called a tax sale

then the highest bidder gets to rent a piece of land for a period of time?

if they pay the taxes, yes.

WTF

yes property taxes suck

What do you mean by that?

If there is going to be a property tax system, it is better that the land be rated without considering improvements. The whole point is to shift the burden onto land.

reason: it forces empty land up for sale, and abandoned properties

reason: it removes the penalty against land development