The Legal Study Of Real Estate Tax

With the development of our country's market economic system and the acceleration of our real estate market, the current real estate tax system is no longer adapt to the demand of this new situation and needs to innovate immediately. Property tax is a kind of tax concerning about the property ownership, which is accounted by the value or the rental of the property. Property tax belongs to the category of taxation towards preserving the property. Property tax is an ancient taxation, assessed upon in many developed countries around the world.After the tax system reformation in 1994, a new tax system frame, which meets our country's national conditions basically, has been set up. However, because of many factors, this reformation is in a strong transitional color. Decision on Several Issues concerning Perfecting System of Socialist Market Economy passed on the 3rd Plenary Session of the 16th Central Committee of the Chinese Communist Party points out that "To carry out reform of urban construction tax and fees, normative property tax should be collected to real estates and related fees should be eliminated when conditions become mature." That is to say, legislation of property tax has been listed into the agenda of the Central Committee of the Party. This guideline of reform forwarded by the Central Committee of the Party cuts into the present-day evils, and points out direction of our country to reality tax reform. Therefore, collection of property tax has become an important content of tax reform in the new cycle.Now the government and the academic community have not achieved a definite appellation for this real estate possession tax. But this paper will use "the real estate tax" to represent it.The first part discusses concept and characters of property and property tax. Property refers to constructed residential and non-residential buildings with utilization functions and economic effect, including necessary equipment, municipal facilities, public utilities and land fixed with building structures. Property tax is a kind of tax collected to organizations or individual persons who own or hold the real estates within the territory. Property tax payers are the organizations or individual persons who own or hold the land and building on the land, things fixed on the land or other real estateswithin the territory. The object for tax collection is the real estates that the taxpayer has the ownership title or use right, and tax calculation basis is the evaluated value of the object for tax collection at the stage of maintenance. It is a main tax category for local taxation system, calculated and collected at some ratio. The property tax is featured by abundant source of taxation, minor mobility of source of taxation, meeting with the benefiting doctrine, and being appropriate for local tax administration, etc. Basic framework of property tax in China is to combine the existing real estate tax, urban land use tax, urban realty tax, land use fee and other taxes and fees, and convert them into the property tax collected centrally during the time when the real estates are maintained. The property tax constructed on basis of such a framework conforms to the trend of reform of realty taxation system abroad.The second part studies real estate tax in many countries. Based on the brief introduction of real estate tax in many countries, this chapter analyzes the relevant economical foundation of real estate tax and summarizes the main characteristics, consequently gives the practical foundation of real estate tax in present China.The third part analyzes the defects existing on the present realty taxation system in China, based on which, it demonstrates the necessity for collection of property tax in China. The present realty taxation system based on the system of planned economy can no longer meet the requirements for development of real estates under the conditions of socialist market economy, and there are many problems: the first is narrow scope of tax collection, and unfair tax burden;the second is unreasonable basis for tax calculation, and unfair tax burden;the third is two sets of taxation systems (internal and external), which violates the national treatment doctrine;the fourth is too many taxes and fees, and serious problems arising from taxation disorder;the fifth is unreasonable structure of tax categories;the sixth is great difficulties in tax collection and administration. Based on problems analysis of present realty tax system in China, this chapter demonstrates the necessity to collect property tax in China in the following four aspects: Firstly, it is helpful for construction and perfection of the estates taxation system in China;Secondly, it can change the tendency emphasizing transaction and neglecting ownership, which are so popular in the traditional realty taxation system, and realize justice in social distribution;Thirdly, it can standardize tax and fee collection and administration system, reduce the operating cost of building industry and real estate development, minimizeburden of enterprises, and create favorable conditions for vitalization of the realty market;Fourthly, it is beneficial for linking between taxation system of real estate in China and international taxation system.The fourth part discusses main doctrines for legislation of property tax in China. To guarantee smooth implementation of property taxation in China, the preparation of property taxation in China shall follow the doctrine of stability, doctrine of imposing the tax according to tax ability, and doctrine of administrative convenience.