I'm not sure what you mean. Property tax rate is set annually by the city, and it has not once gone down. This rate is applied against the current MPAV value of a property.
That MPAC value is reassessed every few years, or when major renovations are done to a property.
As sale prices increase and a reasonable base of comparables is created, MPAC increase the property values.
If my house today is 100,000, and ppty tax is currently 1.34%, my tax this year is $1,340.
Next year, if my MPAC assessed value is now $200,000 (yes, I know, MPAC doesn't typically jump like that, and increases are phased in over a 4 year, or so, period), but now at the same rate, my ppty tax going to the city is $2,680. Double. What more did I get for that? Nothing; same sewer, same water, same street lights and roads, etc.
So, increased property values absolutely benefits the city coffers.
Why do you think the city sways to intensification applications well beyond reason and existing code? Yes I know, Ontario tells Barrie we have to intensify, we are the choose land.
A townhouse development might have 50 units where three or four house once were (see the new proposal on Mapleview). Neighbourhood townhouses in Barrie ar now selling for $660k, and $640k. So MPAC now gets to assess new properties with those dollar values as comparables.
Now on a street that might have had 4 houses assessed last at $500k each, and full city services, they get 50 homes, all valued at $550k or more, so a tax base of $27.5M vs. $2M. And to add to that, most new TH developments don't get their inner road services from the city, so they end up with a common element condo with homeowners footing the bill for garbage and recycling (no green bins), snow removal, and road damage, storm sewers within the lot, street lighting. All those costs that the city used to have to cover from typical properties. Actual apartment style condos are even worse, I mean better, for the city, as now you pile 100s of "homes" and tax them all at the exact same rate as a single family or townhouse.
Yes, the city benefits from increased property values. They do not lower the rate because your property value went up.
Sorry, long winded. This drives me nuts.