Yes, when I learned about this practice, that significantly changed my understanding of the NIMBY problem's solution space.
Although high property taxes incidentally constrain NIMBY behavior, they're a cure worse than the disease. It is appropriate for a city like Toronto to be proud of being able to operate with low property taxes. (I'm not going to defend the way CA Proposition 13 distributes the property tax burden between longtime residents and newcomers; but low property taxes on longtime residents should not be considered a problem, ceteris paribus.)