The Effect Of The Real Estate Tax Reform On The Real Estate Impact Study

The macro-control functions of the real estate tax on realty industry have been approved in the practices of many other countries, Chinese government also realized the importance of real estate tax system gradually and took it as a reliable way to regulate the development of China realty industry. It has become the consensus between the government and the theorists that it is necessary to levy a unified real estate tax (also known as property tax) on possession of real estate. China's real estate tax reform which characterized by levying real estate tax is a systematic project with abundant content, and mainly include the reform of land grant system, the reform and adjustment of tax on the circulation and possession of real estate, and the establishment of other supporting system (such as property assessment and registry system etc.). The influence of the real estate tax system reform upon the development of China's realty industry is highly expected. This dissertation study the influence effect of the real estate tax system reform upon the development of realty industry by the research work that how the core factor (price, product structure, supply and demand) of realty market and behavior pattern of participants(house consumer, developer, local government) of realty industry change under the real estate tax system reform.The primary innovations and conclusions are as follows:Firstly, on theories, the paper divided the basic theories related to the research work into two parts: theories of taxation on properties and theories of influence effect, then combine the theories with the current situation, especially the reality of China's realty industry. Put forward that the present real estate tax system reform should follow the right theories, included such as the theory of public finance separation, the theory of taxation system perfection, the theory of optimum distribution of resources tax system and the theory of income distribution, which are supporting theories to the real estate taxation system reform; also included the theories on the influence effect of taxation reform such as the neutral principle of taxation and hindrance effect of taxation.Secondly, on methodology, most domestic present research works are qualitative research, quantitative research working papers are few. The dissertation, based on qualitative research work, combined the logical deduction and quantitative analysis, deducted and verified the conclusions by analytic model and function, and illustrated the influence of the real estate taxation reform by simulative estimation. For example, verify the influence of the reform of urban land granting fee upon the land price and of the taxation reform upon house selling price by math models; deducted the relationship between the land granting fee and land annual rent by converting the accumulated value to present value, and contrast the quantity of land granting fee and land annual rent by taking the interests rate into account when other conditions still the same; constructed the consumer demand function and total-cost function, developer supply function and total-cost function, local general-objective function, and illustrate the influence effect of real estate taxation reform upon the participants; measured the influence of taxation reform upon consumers and developers by case study and simulative estimation.Thirdly, on conclusions, the conclusions of this dissertation are revelatory. The influences of real estate taxation reform upon realty industry are multiple. It can be concluded by a comprehensive view of the influence effect that the real estate taxation reform will standardize the development of China's realty industry, promote the industries into a period of healthy and rapid growth after reform adaptation. Concretely, there are some sub-conclusions as follows:(1)The land annual rent system can raise the land utilization efficiency and the degree of marketization of local government land supply, establish the relationship between local government avenue and land value, and reduce short-term behavior of the local government and corruption. But it is possible that the local government will lack of public finance in short-term because of the reform, the solution is to choose a right time according to local condition, so it can be put forward with land granting fee system work together, and then gradually expanded. In addition, the influence of land annual rent system upon land price relating to the contrast of rent term, interest rate and growth rate of land annual rent. Because the rent term of house land are 70 years generally, it is impossible to predict the influence of land annual rent system upon land price accurately.(2)The purpose and result of real estate taxation reform, especially levying the real estate tax, will close the gap between the rich and poor, adjust income distribution, and build up local major tax. Though the house price isn't the control target, the real estate taxation reform will surely influence the house price in short-term or long-term. It is because that real estate taxation reform will deduce non-residential demand, such as investment and speculation demand; will turn the residential demand to be rational; will change the investment structure of developer by adjusting the profit of different development project. All the factors mentioned above can promote the developers to save limited land resource, increase effective supply, change the quantity and structure of supply and demand, and then turn the house price to be rational with an appropriate growth. The analyses of the influence of the reform upon the quantity and supply structure are according to this foundation.(3)The real estate taxation reform will influence the pattern of interests between the developers and local government. In a short-term, will reduce the Extra-budgetary revenue of the present government, but will cut down the total-cost of the developers; in a long-term, will be in favor of the local government to build up a healthy sufficient and sustainable fiscal system, will promote the developers to adjust product structure and turn the product position to resource-saving and high-quality, and promote to increase the overall efficiency of the development project.(4)The control target of the real estate taxation reform is very explicit, so it should make the main factors reset of the taxation system with powerful adjustment abilities. For example, on the setting of tax rate, if the proportional tax rate is used, it should be different from presently tax rate used, and in order to implement the anticipant control result, it is even suggested to employ the progressive tax rate in excess of specific area.