This paper investigates the determinants of municipal tax rates in New Jersey, which are among the highest in the United States. Previous literature on municipal tax rates fails to incorporate the effects of local governmental structure. New Jersey's property tax rates are a priority for both voters and politicians because they are among the highest in the U.S. New Jersey has five distinct local government forms, which allow for a specific examination of the effects of different government form on municipal tax rates. I find no evidence of governmental form significantly impacting the equalized property tax rate. I do find evidence, however, in support of the findings of Hoyt (1992) that shows the effects of the proximity of New York City on tax rates. Evidence is also found in support of Büttner (1999) who states that property tax rates will rise in population size. This finding is goes against the popular opinion of New Jersey Legislators that municipal consolidation is the answer to the problem of high property tax rates.