Isn't this exactly how property taxes usually work? (In the absence of caps like California Prop 13, that is.)
The realization principle is a hallmark of income tax law, but many taxes are not income taxes.
The Norwegian wealth tax is 0 up until ~$150k, then 0.7% local tax and 0.3%-0.4% to the state.
So 1%-1.1% above the threshold. But this is of taxable value which for shares is discounted 20%, so the actual tax rate is ~0.8%.
But again, for unlisted companies, the taxable value is the taxable valuation of company assets excluding goodwill, so in practice, it's even lower than that.
What will Norwegian's representatives do they will do. It's stupid and will lead to bad things down the road. Norway is rich and can afford stupid politics for now.
It's also morally wrong, but morality and taxes are not the same.
Morality is subjective, so it's meaningless to argue it is morally wrong without making an argument for why.
Tax. Vacant. Land.
Generally the amount you need for such services is more a function of how much non-vacant land you have in the area than how much vacant land, so unless switching to just taxing vacant land was accompanied by some tax on something else to cover the aforementioned things it would not work very well.
Locally people dodge the remit of the California Coastal Commission by converting land to farms because you can convert a farm to anything.