Property taxes cannot be passed on to tenants unless the landlords are willing to accept much higher densities in their rental house.

So what’s a landlord to do when the rental property is no longer profitable because increases can’t be passed on?

I see a few alternatives:
(1) condoize and sell to tenants. takes money.
(2) insurance fire
(3) abandonment/foreclosure

Making rental properties unprofitable is not in the public interest, as shown by (2) and (3). This kind of stuff was very common in the 70s and 80s.

Lastly, a limit on taxation is not a subsidy, any more than taxing incomes at 50% vs 100% is a “subsidy to business.” It’s just a tax cap, which is what it is.

And as far as subsidizing landlords vs owner-occupied, the last decade has shown that many Americans are too financially illiterate to safely own their own homes. Better to put more ownership in the hands of people who can (and do) run the numbers, rather than paying $100,000 over value and operating with zero margin for error because OMG! the view!