Investigation of Real Estate Tax Leakage Loss Rates with ANNs

Abstract

In Türkiye, many changes have been made in the law within the past fifty years to determine the real estate tax value close to the real market value. However, the changes did not establish a fair valuation system for determining real estate tax. Despite the regulations and records of immovable properties with a geographic information system (GIS)-based inventory in recent years, the problem of leakage loss in real estate tax was still not resolved. Within the scope of this study, a mass appraisal model was created with a dataset of 499 independent sections including trading values from the last year in the district of Kayseri to determine the real estate tax leakage loss rates. Multiple regression analysis (MRA) and artificial neural network (ANN) methods, widely used in mass appraisal, were used in the analysis. Considering the analysis of the test data and the model performances, the ANN model was found to give better results than the MRA model. To conclude this study, the housing values obtained with the mass appraisal methods and the real estate tax values obtained with the existing system were compared, and a 3.7-fold difference was found between them.