Where I live, there is a property tax reduction for owner-occupied homes. Essentially this means if you own two identical homes, and live in one and rent out the other, you’ll pay higher taxes on the one you rent out. Who really pays the property tax bill on the rental property? Yes, literally the landlord pays. But if the property tax goes up by $100 per month, does anyone believe the landlord won’t try to increase the rent to pay for it?