Document Type : Research Paper
Abstract
The paper tries to describe the role of municipal toll on house price in Mashhad City. The methodology adopted was analytical-descriptive to study the impact of municipality toll with emphasis on the effect of excess density franchising toll on house price. The study area is district 11 of Mashhad municipality zones. The data required were gathered through literature survey, obtaining information from the district municipality, referring to websites and real estate centers, Mashhad City Urban Integrated System website, field works, and sampling. 250 samples were selected and analyzed using linear regression model through SPSS (Version 18). Our findings indicated that surplus density tax increases the price of new houses through increasing the cost of housing by 10 percent. Pearson correlation coefficient (r = 0.882) confirms that there is a positive and significant relation between price of new houses and surplus density tax. Therefore, it is proposed that the revenue system of municipality be based on stable financial resources. Moreover, it is necessary to reduce the tax on house construction and mutually the tax on house taking should be raised.
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