How does excessive consumption in an area decrease tax revenue?
Actually the text does not state that consumption leads to a downward trend in taxation, but actually the other way around--

According to the text, anti-growth ideology says that low taxes do indeed lead to development, mainly focusing on population increase, but that this population growth will strain local institutions, meaning public services like emergency response, sewage services, etc.

Greater fiscal expenditure would be required to expand these services to accommodate the increased population.

During its explanation of the anti-growth ideology the article is not referencing increasing consumption of private goods, such as at local businesses, but rather of public goods as explained above.