I hadn&#x27;t heard of this principle that it&#x27;s impossible to pass tax increases on to tenants. I can&#x27;t really believe Adam Smith has shown this to be impossible, when I know people who have said (paraphrasing), &quot;The previous landlord has raised rents to match increases in taxes, water, garbage bills(the utilities are effectively costs of land), and we consider this reasonable&quot;.<p>I feel like you could even make a bet on it: There&#x27;s a nearby trailer park with some mobile homes on it. This should have value solely in the land, since the homes can be removed from the property. I&#x27;m counting the availability of utilities in the land. The county tax assessment on both land and improvements is public information. Suppose the tax assessment as a whole goes up 1.7%. If the trailer park owner is able to secure a 1.7% increase over the next year from his tenants, you pay him $10,000. Otherwise, he pays you $10,000. Do you trust Adam Smith enough to take that bet? It should be impossible, since that 1.7% includes an increase of taxes on the land which you&#x27;re saying cannot be passed onto the tenant.