System Design Of Chinese Property Tax

The land value is embodied unexampledly with the rapid development of the society. The issues such as land appreciation and distribution of income are still disputed without end so far. Though the cost that land appreciation policy involves is quite high, it will bring negative effect on the land market if it is ignored. The land tax revenue is one of the most important and effective means of collecting appreciation income of land until now.In December of 2004, the State Council issued " Decision on Deepening Reform and Enforcing the Management on Land ", it is the most overall, most clear and highest level file about land management that the State Council has issued in recent years. The commentator of People' s Daily thinks while commenting on it that the land management once presented more outstanding problem and land resource shortage has already jeopardized the socio-economic development of our country unprecedentedly, We should not make mistakes again on land which concern the nationality survival and development.The property tax has the best characteristic which becomes the subject tax category of local tax, The reasons are as follows: Firstly, levying tax on real estate causes smaller influence on economy because the real estate is characteristic with difficult displacement and non- mobility. The regional tax rate difference of the property tax will not change the factor of production to be allocated among the areas. Secondly, the residents' personal security, property safety and property appreciation is benefited greatly when local government constructs city, safeguards public security and protects resident's property safety, which can reflect the benefited principle of levying tax distinctly. Thirdly, itis necessary to invite special appraisal agency to assess each real estate because of its deference of location, environment, shape, structure, orientation, quality, history, which causes high cost and great difficult to levy tax on real estate. Regarding real estate tax as the main tax category of the local government will arouse the enthusiasm of local government to Control the source of tax revenue effectively and put in storage in full amount in time. Fourthly, the source of real estate- tax revenue is steady and will not change radically with the change in economic cycle, and tax bases will also grow with the development of regional real estate. Finally, the property tax will become the important tool that local government balances the financial revenue and expenditure because its base and rate can be confirmed according to the needs of revenue and expenditure by the local government, but sales tax and income tax do notfpossess such a characteristic. Therefore property tax is recognized as an ideal local subject tax category unanimously by academia.The thesis discusses about how to allocate the land added income and what kind of role property tax should be acted in it. Land is the largest wealth in society and the unfair allocation of land income is the greatest unjust in social allocation, Therefore property tax is one of the important respect of regulating allocation of land income. The system design of property tax must regard fair and efficiency as the direction in order to balance the interests of the country, locality, real estate enterprises and residents. The innovation of the thesis lies in: Firstly, various kinds of effects that the system of the property tax may be caused after being implemented, especially economic effect is paid more attention during the process of designing the system of property tax of our country. Secondly, the effect caused by the system of property tax...