Homeowners’ property tax payments are commonly derived as a fraction of their homes’ estimated market values (EMVs). In theory, these EMVs should impact trading prices through two counteracting channels. First, an increase in EMV implies increased tax payments, which should negatively affect a home’s trading price (tax channel). Second, EMVs are a potential reference price, which should lead to a positive effect (anchoring channel). In a quasi-experimental setting that exploits geographic variation in timing of EMV publications and revaluation frequencies, I show that a.c.p. higher EMV leads to a lower trading price, i.e., that the tax channel dominates.