Development of property valuation model for tax purposes using ordinary least square method

Oliver Valentine Eboy and Narimah Samat (2014) Development of property valuation model for tax purposes using ordinary least square method. International Journal of Environment, Society & Space, 2. pp. 61-71. ISSN 2289-5299

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Abstract

In Malaysia, based on the Local Authorities Act 1976 (Act 171), all properties are required to be valued every five years to determine new rate for tax purposes. The revaluation or valuation of the property has been carried out manually, which involved exhaustive, time consuming and costly processes as it involves large area and many properties. However, there has been a growing trend in developing a property valuation model which is capable of estimating property values of large quantities in a short time with little manpower needed and low in cost. Such an approach could ease the burden of the local authorities and produce up-to-date property rate. This study demonstrates the development of property valuation model using the Ordinary Least Squares (OLS) method to estimate residential property value for the area under Kota Kinabalu City Hall (DBKK) jurisdiction. The effectiveness of the OLS would be examined by referring to the accuracy of the model and the significant of the model’s variables, conducted through a series of model tests and compared the models predicted value with the present value. The findings shows that the OLS capable to produce a good property valuation model and could easily visualize in GIS map thus improve the management of property tax in local authority. Moreover, the local authority could effectively manage the resources, and therefore, be able to provide good services to the society

Item Type:	Article
Keyword:	Property Valuation Model , Property Tax , Ordinary Least Squares , OLS , Gis, Kota Kinabalu
Subjects:	H Social Sciences > HJ Public Finance > HJ9-9940 Public finance > HJ2240-5908 Revenue. Taxation. Internal revenue
Department:	FACULTY > Faculty of Social Sciences and Humanities
Depositing User:	SAFRUDIN BIN DARUN -
Date Deposited:	22 Dec 2021 17:16
Last Modified:	22 Dec 2021 17:16
URI:	https://eprints.ums.edu.my/id/eprint/29169

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