Correlation or Causation? High Property Taxes, Low Property Value

[Anthony Gayden]

I am curious what everyone's opinion is on this issue. I have seen areas with relatively low property values that have high property taxes (Texas). At the same time I have seen areas with high property values, but relatively low property taxes (California). Of course there are exceptions to this where you have high property taxes and high property values (New Jersey) and low property taxes and low property values (Missouri).

Still it made me really wonder if the tax rate was having an effect on values. Obviously adding hundreds of dollars to your mortgage to pay taxes can have a detrimental effect on what a person can afford.