To the extent that the taxes represent the prorated cost of connecting a homesite to the power, water, roads and sewers, fair dinkum. But when they start adding fees for "environmental impacts" and others, that's when they prevent building. All that vacant land north of SF? It'll cost a big fortune to get water, sewer, roads and power up there, and that's if they even have spare water to allocate. Which California probably doesn't.
I'm sitting on a vacant lot in East Texas that I bought on EBay for peanuts. But if I want to build, I have to pay a sewer connection fee, a water connection fee and a power pole connection fee. That's about 20x what I paid for the lot. Still cheap in the scheme of things, but I'll probably end up selling it to one of my "neighbors" who may want a bigger yard (and who, according to GIS satellites, have encroached on my lot).