The Study on House Tax Equity in Taipei

This study investigates house tax equity in Taipei. By analyzing the real estate transaction data from 2007 to 2009, the results show that the median assessment ratio is 14.79% and most of the assessment ratios are between 10% and 16%. The horizontal equity does not hold in Taipei and it gets worse in the downtown. The results also show that the house tax for low-cost houses is regressive. In addition, the variation in the assessment ratios of low-cost houses is the largest. Therefore, the local government should reduce the assessment value and its variation for low-cost houses. Because there are many high-cost houses with lower assessment ratios, the mansion tax may make the house tax more equity by increasing the assessment ratios of high-cost houses. But its effect needs more studies.