Research On The Improvement Of Volume Assessment Techniques Route For Tax Price In Stock House Transaction

With the development of China’s market economy and the promotion of the real estatemarket, real estate trading activities become more and more frequent, active trading market onthe one hand provide a broad tax base of the real estate tax, on the other hand, the behavior ofdoing low transaction price occurs more and more frequently, and it makes big leak in taxcollection of the stock house transaction. In China, the tax collection in the stock housetransaction process is generally not satisfactory, doing low contract price occurs frequently instock house trade due to the great tax avoidance space it brings. The key link to avoid thephenomenon of low price contract in stock house trade is real estate assessment. As for theissue of both buyer and seller reporting low transaction prices, the revenue department putforward that the tax assessment techniques should be applied to real estate assessment.As pilot cities, Dandong, Hangzhou and Nanjing have established their own volumeassessment system for tax price in stock house transaction. Firstly, researchers compared thevolume assessment techniques route of these three cities, and then analyzed their advantagesand disadvantages. Based on the existing volume assessment techniques route, researcherscome up with an improved volume assessment techniques route for tax price in stock housetransaction, it can suit more complex cities. Then researchers take an example of Nanjing toexplain the operation of improved volume assessment techniques route. Improved techniquesroute includes three parts: dividing assessment parts, determining base price and founding correction parameter system. In dividing assessment parts, researchers take the way ofcombining price division and administration division. In determining base price and foundingcorrection parameter system, the first is to collect information of actual stock housetransaction to establish the hedonic price model, and then calculate correction factor throughthe hedonic price model, then researchers use the improved method (market-hedonic pricemethod) to calculate the price of standard sample housing estate, that is base price. Lastly,researchers compare standard sample housing estate and assessed real estate to calculate theprice of real estate to be estimated. After introducing how to operate the improved volumeassessment techniques route, researchers take an example of a specific house to explain how touse the improved technology route to calculate the price of housing to be estimated, and madea error analysis, the result of error analysis shows the difference between the assessed valueand the actual value is smaller, it manifests the improved volume assessment techniques routeis practical. Other cities can learn from the improved volume assessment techniques route fortax price in stock house transaction, combining with the local real estate market condition toestablish local methods for assessing real estate in stock house trade. By doing so, the work ofthe State Administration of Taxation could be completed successfully, and meanwhile,management level of the tax price can be further improved.