Revealed Preferences for Property Taxes: An Empirical Study of Perceived Tax Incidence

Voting in an election over removal of a "homestead exemption" is examined to determine different groups' perceptions of the incidence of the property tax. Homeowners in two categories appear to evaluate accurately the effects on them of the homestead exemption. Renters with higher cost rental contracts are more likely to believe they are significantly affected by the change in the property tax structure. These results demonstrate the ability of local governments to discriminate in tax share price across groups of voters.