North Dakota implemented two pieces of legislation in 2009 and 2013 to reduce property tax burdens. These policies encouraged local school districts to lower their property-tax mill rates and provided intergovernmental grants to school districts to replace the missing revenue. In this study I examine the effect of this change in policy on total school district expenditures. I employ panel econometric methods to analyze the effect that these property tax relief interventions had on county education expenditures in North Dakota. Though there were mixed results for the effect of the 2009 legislation, this study finds that the property tax relief that occurred in 2013 led to increases in expenditures where a one-mill reduction in local school district mill levies increases per pupil education expenditures by $40 - $65. This validates my hypothesis that property tax relief led to the occurrence of fiscal illusion and subsequently increased expenditures on education.