I think government-owned land should be subject to real estate assessment
and taxation and that the taxes paid, even if to itself, would show up
on someone's budget. This might force more efficient use of land and
buildings.

Here in New York, municipalities pay property tax on real estate they
own outside their own town. The well for our village water system is
a few miles away in the next county, and we pay town, county, and
school tax on the well and pump station.

R's,
John