Martin A. Sullivan (Contributing Editor, Tax Analysts) has published Growing AMT Pressures State and Local Governments, 107 Tax Notes 288 (2005), also available on the Tax Analysts web page as Doc 2005-7780, 2005 TNT 74-6.  Here is the Introduction:

The good news: The value of your home has doubled in five years. The bad news: So have your property taxes. Well, at least those taxes are deductible against federal income tax, right? Perhaps not.

If you are one of the growing number of the upper-middle class paying the individual alternative minimum tax, any increase in state and local income and property taxes will not reduce your federal taxes. The Reagan administration was able to persuade Congress to eliminate the deduction for state and local sales taxes, but not the deduction for state and local property and income taxes, as part of the reform of the regular income tax in 1986. However, the Tax Reform Act of 1986 eliminated the deduction for all state and local taxes for purposes of the individual AMT.