Scrutinizing of City Taxes Effects on Final Housing Price in Hamedan

Abstract

Housing has some characteristics as an economic good that distinguishes it from the other goods. Housing can be considered as a commodity and also can be accounted as one the essential human needs such as food and clothing; it is also a durable and immovable capital good while investing in it forms a huge volume of the family property. It is an attractive target for business agents and families themselves. In this paper, with an analytical-descriptive method, the role of city taxes has been studied in housing prices, emphasizing transferring excess density. This research case study is Hamedan City. Required information has been obtained from studying related documents gathered from Hamedan region one municipality as well web sites, property databases, field studies, and sampling from 230 cases in the study region analyzed, using SPSS and regression model. Results revealed that transferring excess density with a present pattern increases the average city tax share in new residential production prices by 8%. Pierson correlation coefficient (r= 0.743), confirms the existence of a direct and significant relationship between housing price and city taxes while transferring excess density in Hamedan. In this regard, replacing sustainable income resources and decreasing the amount of taxes on housing supply and demand is highly recommended while we are relying on housing demand taxes more.