Well local jurisdictions are funded by sales taxes they themselves set. You live in a tourist town? Well higher sales tax results in more funding for local services and possibly lower property taxes and you could just drive to the next town if you want to save the 1-2%. What's not to like?

There’s so much wrong with this, that I don’t know where to start. So let’s start with the elephant in the room: driving to next town to buy something that is available locally is generally a red flag of market economy failure, because it is incredibly inefficient and environmentally harmful.

Then there’s an incentive to produce higher inequality: high sales tax affects mostly poor, while low property tax usually benefits rich. Poor people are usually underrepresented in democratic institutions, so it would not be surprising if inverse redistribution would be a frequent problem.

Finally, local tax as a way to fund communities is not the only alternative and relying on it would mean that some communities will never get out of financial trouble. Tourist towns are minority, after all. Other countries just keep some of the collected VAT locally and redistribute excesses from richer to poorer communities through federal transfers (German solidarity tax did exactly that, for example).