1# RECORD 25220943ab063e0fe03168460d2005c02cf25de02# TITLE: Mass Appraisal of Property Tax Base based on Multivariate Linear Regression—Empirical Study on Four Districts of Jinan3# YEAR: 2013.0 VENUE: nan DOI: 10.2991/icetis-13.2013.2544# AUTHORS: Shan Tian5# PAGES: 5 CANDIDATE TABLE PAGES (1-based): [5]6# ABSTRACT: In this paper, a multivariate linear regression analysis is made to the effective transaction data of 226 housing stocks in four administrative regions (Tianqiao District, Shizhong District, Lixia District, and Huaiyin District) of Jinan, a mass appraisal model of real estate values is established, and also the transaction prices of 226 housing stocks are compared with the appraised prices. In this study, it is thought that an efficient, low-cost, objective, and accurate mass appraisal can be made to property tax base through the establishment of a unified real estate information database. In the mass appraisal system, geography information technology should be integrated so as to improve the objectivity and accuracy of the appraisal results.789===== PAGE 1 (score 4, numeric-paren 0, table-words 0, var-words 4) =====1011 12Mass Appraisal of Property Tax Base based on Multivariate Linear 13Regression—Empirical Study on Four Districts of Jinan 14Shan TIAN 15School of Economic Management, Shandong Women's University, Jinan, Shandong, China 16Tianshanhaoxinqing@163.com 17Keywords: Property tax base; mass appraisal; multivariate linear regression 18Abstract. In this paper, a multivariate linear regression analysis is made to the effective transaction 19data of 226 housing stocks in four administrative regions (Tianqiao District, Shizhong District, 20Lixia District, and Huaiyin District) of Jinan, a mass appraisal model of real estate values is 21established, and also the transaction prices of 226 housing stocks are compared with the appraised 22prices. In this study, it is thought that an efficient, low-cost, objective, and accurate mass appraisal 23can be made to property tax base through the establishment of a unified real estate information 24database. In the mass appraisal system, geography information technology should be integrated so 25as to improve the objectivity and accuracy of the appraisal results. 26Introduction 27Since the uniformly standardized collection of the property tax was proposed in the Third 28Plenum of the 16th CPC Central Committee on October 14, 2003 and relevant charges were 29canceled, a lot of fundamental work has been made by China’s government to the collection of 30property tax. However, there are many problems necessary to solve, and property tax base and tax 31rate should be primarily considered because they directly play a decisive role in the amount of 32payable tax and also has a tie with the fairness of the taxation. Tax base is the basic amount of the 33payable tax for calculation, so it is the basis of tax assessment. The main basis for determining the 34base of the property tax collected in the transferring process of real estate lies in the appraisal value 35of property. Therefore, accurately estimating the appraisal value of real estate tax is the foundation 36of determining property tax base and deciding payable property tax amount, and also the key to the 37success of collecting property tax. The appraisal scope of real estate value for the purpose of 38taxation generally includes all real estates in the country, so the amount in appraisal is huge. 39Appraisal time-point generally refers to the unified appraisal base date provided in the tax law, and 40the time points are required to be consistent. To ensure the fairness of the taxation, appraised objects 41should be periodically assessed. Therefore, time and cost should be considered seriously in the 42appraisal, and mass appraisal techniques are necessarily introduced to the appraisal of property tax 43base. 44Mass appraisal is a new computer technology based appraisal method system, in which a 45corresponding asset appraisal model is established with three principles of asset appraisal and also 46the appraisal model is repeatedly corrected and evaluated with mathematical statistics technology 47and other related technologies. Mass appraisal rose in foreign countries in the 1970s, but has 48developed into a new appraisal mode of great influencing power currently. At present, property tax 49base is commonly assessed with mass appraisal in the countries such as the United States, Britain, 50Germany, and Finland using market value as tax assessment basis. 51As early as 1919, scholars in the western world had applied the multivariate regression analysis 52in statistics to price appraisal. Due to the absence of computer technology at that time, early 53technical analyses on mass appraisal were manually completed by economists using multivariate 54regression analysis, so a lot of time and energy were required to cost. Later, with the popularization 55of information technology and computer technology, computer-assisted mass appraisal (CAMA) has 56been widely applied to property tax base appraisal, public administration value appraisal, and the 57mass real estate value appraisal in business activities. Now, this technique has been used in the 58International Conference on Education Technology and Information System (ICETIS 2013)59© 2013. The authors - Published by Atlantis Press601111616263===== PAGE 5 (score 25, numeric-paren 0, table-words 3, var-words 8) =====6465 66 67Table 2: Coefficients 68Model 69Non-standardized Coefficients 70Standardized 71Coefficients 72t 73Sig. 74Co-linearity Statistics 75B 76Std. Error 77Tolerance 78VIF 79(Constant) 80-59506.228 8150917.800 82 83-1.169 840.244 85 86 87Geographic 88Position 8958080.342 908630.594 910.239 926.730 930.000 940.979 951.021 96The Number of 97Verandas 98-35112.641 9914006.309 100-0.092 101-2.507 1020.013 1030.914 1041.094 105Building area 1066972.190 107363.181 1080.713 10919.198 1100.000 1110.893 1121.120 113Housing type 11429134.010 11511631.539 1160.099 1172.505 1180.013 1190.782 1201.279 121Decoration 12225098.127 1238085.780 1240.110 1253.104 1260.002 1270.973 1281.028 129Facilities 130105639.321 13126027.895 1320.158 1334.059 1340.000 1350.816 1361.226 137 138Table 3: The ratio between market value and appraisal value 139No. 140Market 141value 142Si 143(RMB) 144Appraisal 145value 146Ai 147(RMB) 148ARi=Ai/Si 149|ARi-M|150No.151Market 152value Si 153(RMB) 154Appraisal 155value 156Ai 157(RMB) 158ARi=Ai/Si 159|ARi-M| 1601 161800,021 162739,821.961630.92 1640.5011 16512 166850,000167883,447.32 1681.04 1690.0043 1702 171850,000 172794,543.011730.93 1740.1002 17513 176850,000177889,152.54 1781.05 1790.0111 1803 181876,000 182841,314.041830.96 1840.0746 18514 186830,000187874,848.08 1881.05 1890.0190 1904 191860,000 192831,851.351930.97 1940.0677 19515 196850,000197901,573.25 1981.06 1990.0257 2005 201850,000 202826,027.182030.97 2040.0632 20516 206850,000207907,278.47 2081.07 2090.0324 2106 211849,966 212830,460.432130.98 2140.0579 21517 216960,0002171,028,254.20 2181.07 2190.0361 2207 221850,000 222833,375.022230.98 2240.0546 22518 226870,000227934,555.47 2281.07 2290.0392 2308 231860,000 232852,767.922330.99 2340.0434 23519 236820,000237904,048.47 2381.10 2390.0675 2409 241850,000 242863,206.522431.02 2440.0195 24520 246850,000247939,015.44 2481.10 2490.0697 25010 251830,000 252858,033.772531.03 2540.0012 25521 256900,000257999,559.56 2581.11 2590.0756 26011 261850,000 262882,180.352631.04 2640.0029 26522 266850,000267983,060.66 2681.16 2690.1215 270Median 271850000 272878514.21 273 274 275Median ratio 276 2771.03 278 279 280Mean 281854,818282881,744.32 283 284 285Mean ratio 286 2871.03 288 289 290Discrete coefficient 291 292 293 2946.54 295Price-related difference 296 297 298 2991.00 300 301Building Area 302LA 303Numerical 304Variable 305The building area of each property ( Unit: m2) 306The Number of Toilets 307W 308Numerical 309Variable 310The number of the toilets in the property of each 311transaction case (Unit: room) 312Housing Type 313RS 314Classified 315Variable 316multi-storey housing (≦7)=0; 317Small high-rise housing (8~12, including 12)=1; 318High-rise housing (>13)=2 319Years of Housing 320AGE 321Numerical 322Variable 323Base period is the year of 2012, and the year of the 324housing in 2012 is 0 (Unit: year) 325Decoration 326DS 327Classified 328Variable 329Blank or clear-water=1; simple decoration=2; 330medium decoration=3; refined decoration=4; 331luxury decoration=5 332Facilities 333I 334Dummy 335Variable 336Non double-gas source facilities=0; double-gas 337source facilities=1 338The Number of Floors 339L 340Numerical 341Variable 342The number of floors in the property of each 343transaction case (Unit: floor) 3441115345