It's capital gains tax free, but it's far from tax-free. Myself, I pay about $7000 a year in property taxes on mine.
Eliminating those and increasing corporate/second property taxes instead would be insane. That means that renters would be responsible for most of the taxes required to maintain the streets in front of my house.
What you seem to not understand is that the government has enough money to maintain the roads with out property tax entirely. It would force the government to be more efficient with their money and shrink the governement to just the essentials.
You think any for of US government operates on a shoestring budget? They are the most bloated entities on the earth. And its based off the backs of the poor and middle class.