Study On Land Incremental Values And Its Revenue Distribution

With the establishment of land use rights system which included compensation, the land market gradually matured and land asset values became increasingly apparent. This implied flexibility in the uses and types of land, promoting optimal allocation of land resources that yielded optimal land incremental value from land transfers. Moreover, this also promoted the process of urban construction and regional social economic development. However, the problems in operation of land incremental value distribution system have increasingly revealed with the reform deepening, especially with the rapid development of the real eatate market from this year on. The land sales revenue of local governments has increasingly growed and the existing problems about local governments also include excessively land sales and disturbing land market and real estate market. Especially, with the sharp rise in housing and land prices in recent years, local governments gain substantial profits from the land leasing system and also depend excessively on land-related finance. Meanwhile, the excessive land acquisition has increasingly led to acute contradictions between the collectives/farmers and local governments. The duality of urban-rural institutions in China has resulted in the separation of urban and rural land market linkages. Consequently, the rural land can not resist the intervention of land acquisition. This causes the uneven distribution of land incremental values between the collectives/farmers and local governments coupled with the reason of unclearly definition of "public interest". Hence, it has led to acute contradictions, even the farmers’ petition events. Moreover, with the sharp rise in housing and land prices in recent years, intense speculation in the land and housing market has increased, disturbing the normal market order. Therefore, it is necessary to study the distribution process of land incremental values, and it is significative for reforming and perfecting the distribution system.In this paper, we discussed the essence and expression of land incremental values, cleared the formation mechanism of land incremental values, studied the distribution mechanism of land incremental values, estimate the distribution relationship of land incremental values, analysed the reasons of land incremental values gap, basing on research frame of "What-Why-How", so as to put forward reform measures to promote the distribution system. Through this study, the conclusions were as follows:(1)Land increment is the increase of land value, and its essence is the increase of land rent, reflecting in the value of the land produced products. And it can be showed by the increase of land price. Hence, any factors which cause the change of land rent can result in the land increment, including absolute rent, monopoly rent and differential land rent. In conclusion, the land incremental values is caused by the increase of labor values because of labor, capital and technology inputs; and it also due to the increase of land price because of the change of land supply-damand relation.(2)The land incremental value of collectives/farmers is the difference between land acquisition compensation and agricultural land price, and the local governments gain the difference between the leasing price and land development costs, and the developers obtain the the difference the land price when selling real estate and land leasing price, construction and installation costs, relevant taxes, social average profit in the stages of "land acquisition-land leasing-real estate development".(3)The distribution of land incremental values presented the characteristic of "the collectives/farmers<local governments<the developers", and the incremental values were falling from the eastern region to the central-western region. The relative gap of land incremental values relating to different stakeholders presents the characteristics of "a more uneven distribution between collectives/farmers and local governments in the eastern-central region" and "a relatively even distribution between local governments and the developers". The2005-2012time series analysis of land incremental values showed the characteristics of "the greater change of the collectives/farmers in the central-western region" and "the greater change of the local governments in the eastern region".(4)The influence factor to the distribution of land incremental values included institutional factor, property right factor, market factor, government factor and so on. The duality of urban-rural institutions in China has resulted in the separation of urban and rural land market linkages, and it also has resulted in the property right difference between state-owned land and collective-owned land. The property right of collective-owned land had strong inheritance, and its exclusiveness and transation was not fully reflected. Otherwise, the collective-owned land can not resist the intervention of land acquisition, restricing the land incremental values of collectives/farmers. And the different market growth degree between urban and rural land market can also affect the distribution of land incremental values relating to different stakeholders. In addition, the interests of collectives/farmers can also been damaged when the local government pursuiting economic interests.Therefore, a variety of ways including to retain some land for revence and land investment earnings should be used to promote the farmers sharing long-term revence, and the narrowing the scope of land acquisition should be discussed to reduce the damage of farmers’ interests. Meanwhile, the government should focus its own function of "manager" and commit to the public service by perfecting performance evaluation system, establishing a property tax system gradually and standardizing the using direction of land incremental values. Furthermore, the government should adopt the taxation to limit the expansion profit space of the developers.