The Application In The Assessment Of Real Estate Tax Base With The Hedonic Price Model Based On The Box-Cox Transformation

In recently, the price of real estate is multiple monopolies in China. The supply fulfills mostly the housing of high-level salary people and speculations. It doesn’t meet the normal housing of people. Therefore, the government needs to regulate the price of housing which is increasing quickly and supply the indemnificatory housing which could satisfy the basic living need for people. Compared with administrative intervention, which is announced continuously recently and interrupts the economic market, the regulation of property tax is more comfortable with market. Why can’t the reformation proposal of property tax be published? The core is to China is lack of the assessment system which is fair and practical.Hedonic price model has been used of real estate tax base assessment oversea. However, it is utilized less by assessment institutions in practical. The utter reasons are that we are short of union database and reference statistics in real estate industry. Hence, from the real situation, I consider to collect less data and realize the system building of real estate tax base assessment without impacting the effect.This paper is base on the hedonic price model with main variable. Besides, it introduces the Box-Cox conversion which will optimize the original model. First, it makes use of the hedonic price model with main variable to calculate the price of characteristic variables. Second, it utilizes the Box-Cox conversion to optimize the original model. At the last, by comparing and analyzing, the coefficient of determination is better after using Box-Cox conversion.This paper makes a breakthrough that the researchers need to collect the data of community level (location and neighborhood) in full energy before. It not only simplifies the data collection, but also overcomes difficulties that sample data is less and the explanatory variables are hard to cover the implicit variables if using the hedonic price model directly. Base on the research of architectural features, I choose 52 variables for the index system of characteristic variables. After that, I get the effective data 356 with the study objects which are the second-hands house in Wusibei Xindian Location, Jinan Area, Fuzhou. It applies the optimized hedonic price model with empirical analysis. By regressing, it ensures the average price for each community. And it also gets the price the variables impacted, such as the level, floor, view, distant, decoration and the numbers of room, sitting room, kitchen, washing room.The achievements of this paper are:(1) Building the housing index system by introducing the community variable.(2) Optimizing the multiple regression line models by introducing the main variables and building up the hedonic price model for Fuzhou housing.(3) Analyzing the coefficient of each housing characteristic variable by assuming the Fuzhou housing market is single.