Great idea, unfortunately not within the municipalities powers. Tax exemptions are managed by the treasury department, municipalities cannot alter them.
Though they could do what Pick'nPay did in a promotional thing when meat lost it's VAT-exempt status a few years and pay it for you (perhaps in the form of a  rebate on your property taxes). Of course, this would deprive the city of revenue that treasury would decidedly not want to reimburse.

So it gets kind of complicated.