A Research on the Impact of the Changes in Land Value Increment Tax Rates upon Different Counties and Cities

• Main Authors: Hsu-Ho Chou, 周栩合
• Other Authors: Suming Lin Ph.D.
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/89262931203320177077

碩士 === 國立臺灣大學 === 會計與管理決策組 === 97 === To stimulate the economy, the government of Taiwan enacted a two-year 50% tax cut on the Land Value Increment Tax in 2002 for three years and a permanent tax rate cut in 2006. This study examines the effect of the changes in Land Value Increment Tax policy on the tax revenue and the land areas transacted in counties and cities with different disposable income per capita, using data from Financial Data Center, Ministry of Finance, and Directorate-General of Budget, Accounting and Statistics. According to the descriptive statistics and regression model analysis, the results of this study are as follows：(1) During each period of the tax-cut policy, the average tax revenue and areas of land transactions in all counties and cities increased. (2) Counties and cities with higher disposable income tended to only have greater increased amount of tax revenue, suggesting that the increased amount of land areas transacted in rural counties was not inferior to that in urban counties. (3) The increased percentage of tax revenue and land areas transacted in counties and cities with higher disposable income was not superior to that in counties with lower disposable income. With the positive effect on tax revenue and the land areas transacted in the both urban and rural counties, the findings of this study suggest that the Land Value Increment Tax-cut policy should be regarded as an effective measure to stimulate the domestic real estate market and inspire the economy prosperity. Key words：Land Value Increment Tax, Tax Cut, Tax Policy