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As the rising price of real estate, the government in Taiwan launched policies in order to stabilize the market. Luxury tax, which levied higher tax on arbitrage in 2011, decreases the volume of real estate transactions. However, the housing price keeps raising. “Full Disclosure of the Information of Actual Price Registration of Real Estate Transactions ACT” in 2012 successfully deals with either transparency or information asymmetry of property price. In January 1st 2016, the upcoming tax reform, “House and Land Transactions Income Tax “, tries to stabilize property taxation, and to ease unreasonably rising of property price. We further exam whether the “House and Land Transactions Income Tax” has positive effect on stabilizing property price after four years of implementation by studying transaction data in Keelung city.
This research takes housing price in Keelung as an example in order to study the effect of “House and Land Transactions Income Tax” in Taiwan. Based on descriptive statistic, the ratio of house price to income in Keelung city is lower than as in nation. In our Student T Test and regression, the application of “House and Land Transactions Income Tax” and housing price in Keelung is positively significantly related. To conclude, the application of “House and Land Transactions Income Tax “does not restrain the hosing price.
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