If the tax increase reduces the investor’s return on investment through less cash from the property, then the simple sound bite response would be yes. Our due diligence system regards revenue, sales, and state and local taxes below the national average as a positive factor. However, this is one of those pebble in the pond questions. The amateur investor looks at the first ripple and makes an investment decision. The successful investor looks to the furthest ripple and makes an informed judgment.

To get a better answer to the question, you have to examine the reasoning behind the tax increase. Does it create jobs? Does it build infrastructure near the property? What does it do to the economy? Does it have any affect? The answers to those and other related questions will give you a more thorough answer regarding the impact on property values.