An Investigation into Equity Issues of Property Tax Valuation

• Main Authors: Lin, Tzu-Ya, 林子雅
• Other Authors: Lin, Tzu-Chin
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/40349880511139264476

碩士 === 國立臺北大學 === 不動產與城鄉環境學系 === 95 === The assessed value of a real property is supposed to correspond to its market value. If properties are not properly assessed, land policies will be malfunctioning and land use be distorted. The majority of previous research have provided numerous empirical results of assessment inequity, but seldom discussed on the methods of correcting inequity. We propose a way of testing the inequity of property valuation and eliminating detected inequity through an inexpensive procedure. In addition, spatial element of valuation inequity is considered. We employ the approach of Vertical Horizontal Appraisal Adjustment System to examine a sample of residential properties transacted between January 1994 and June 2004 in Neihu and Nangang districts of Taipei City. No significant assessment regressivity or progresivity is found. A nature of significant horizontal inequity is discovered, and assessed values are substantially lower than their corresponding sales prices. The regression model proposed by Allen and Dare (2002) is also used to find the causes of horizontal inequity. The results indicate that assessment errors (as measured by the variation around the mean assessment to sale price ratio) are negatively related to the number of collected sales samples and positively related to land size. Along with VHAAS and regression analysis, we use Moran’s I index to distinguish potential spatial autocorrelation of assessment ratios. Cluster of similar assessment ratios are in place in both districts of Neihu and Nangang. This non-random pattern implies the assessment inequity in a spatial sense which was largely ignored. Finally, we undertake interviews with assessing officers to understand their explanation for our detected inequity phenomenon. We have come to the conclusion, based on our empirical findings, that the valuation zone system in Taiwan has functioned better than many have expected, given the strict constraints of time, manpower and budget