At least two studies within the public choice literature find that taxpayers have
imperfect information regarding the property tax. In a survey of residents of three cities,
Ordeshook (1979) found that citizens were significantly more accurate in estimating the
amount they paid in property tax the previous year than the amount their tax bill would
increase if their property tax rate increased by 5 mills. Lankford (1986) found that
taxpayers voting on a property tax referendum in one school district believed the tax cost
of services were higher than the true cost¸ which may have induced them to oppose the
referendum more than they would have in the absence of fiscal illusion.