Cite?
Perhaps large apartment complexes owned by property management companies factor property tax into rent increases, but most normal people aren't that calculated in their decisions. I've had landlords raise the rent with every lease renewal proposal arbitrarily, regardless of whether their cost of ownership increased or decreased. Simply asking for a reason gave me my old rate back. It's just too tempting to try and take an extra $10 a month.
As memphis said, it's also basic "going rate" supply and demand. Property owners are no more or less sheep than the renters.
Well, New Mexico isn't as tax happy as New Jersey is. In our case, we had property taxes going up by high single digits annually, so any decision to increase rent is not arbitrary at all.
http://www.state.nj.us/treasury/taxation/njit35.shtmlBy law, the state of New Jersey considers 18% of your rent to be your property tax.
By law, also, the state of New Jersey is supposed to designate all income tax receipts into a property tax relief fund. They don't really do that, though.