Legal Research On The Levying Of Property Tax In China

Since the document"Decisions by Centre Committee of C.P.C. on IssuesRegarding Perfecting Socialist Market Economic System", which was adopted at theThird Plenary Session of the 16th Centre Committee of the C.P.C, brought forwardthat"reform taxes and fees regarding the construction of the city and town, and levyproperty tax on the real estate when conditions allowed, while abolish fees in relationto","Property Tax"has received a special attention from government, academic field,practical field, and the media as well, which is abnormal in the history of our country'stax system after the establishment of new China. All of these phenomena show thatthe levying of"Property Tax"became an important issue in the new reformation of taxsystem in real estate, and a vital subject in Economic Law.Chapter one, in this part though the definition of"Property Tax", the theoreticalbasis for the levying of property, as well as a demonstration of legal values of theproperty tax, this thesis begins with the theoretical basis for the Property Tax. TheProperty Tax is a tax based on the open market value or the rent in a year of real estate,which mainly refers to property that cannot be moved, or will cause changes in thequality and structure of the property if moved, includes land, buildings and structuresaffixed to. There are many forms of theoretical basis, including the theory of benefit,the theory of income adjustment, the theory of fiscal-revenue and the theory ofdistribution of social resource. In this thesis, the theory of benefit gives support to thetheoretical basis for the levying of property tax. Every law has its value, includingfairness, justice, order and freedom and the like. The value of the property tax containsthe value of objective and the value of function. The maximize of social benefits,which is the value of objective, dominates the value of function of the property tax,and the property tax which pursue fairness, justice, order and freedom in the real estate market presents typical characters of the economic law.Chapter two,"comparative study of the property tax", introduces the property taxsystem in the United States, Britain, Canada, Hong Kong and Taiwan District. Indeveloped countries, there are many differences in levying of tax on holding orpossession of real estate, such as the name of the tax, the object to be levied. However,there are still many things in common, including: tax for possession of real estate is atax at local level and the revenue thereto holds a leading role in local fiscal revenue;most of them adopt a principle of wide tax base, simple tax category, and low tax rate;every country has a perfect supporting system, including a perfect real estate registersystem, an effective assessment system, a systematic tax laws and regulations, anappropriate distribution of rights in levy between the central government and the localgovernments.Chapter three,"the necessity for the levying of property tax in China",demonstrates the necessity for China to levy property tax by analysis of the conditionsof taxes and fees in real estate. The levying of property tax will change the conditionof"too much taxes in exchange while not enough tax in possession of real estate", andas a result will cause the distribution of resources in real estate become more rational;the levying of property tax would be the beginning of establishing and perfecting ourcountry's property tax system; it will change the way of financing in real estate marketand avoid risk in financing; and it can regulate the real estate market though thefunction of tax.Chapter four,"suggestions on the levying of property tax", gives suggestionsspecifically on the elements of property tax, and the establishment of supportingsystems. A general idea of the reformation of property tax is based on present realestate tax system. For that reason, it is very important to make clear the relationshipbetween the property tax and other forms of tax and fee in real estate. By analysis therelationship between the property tax and the assignment fee of the assignment of the right to the use of land, the relationship between the property tax and other taxes inreal estate, the distribution of rights for tax, this thesis suggests that the system ofassignment of the right to the use of land shall be withheld, while reform the realestate tax system by withdrawing the urban real estate tax and the real estate taxthough levying the property tax, withholding the farmland occupation tax and deed tax,abolishing the land appreciation tax. For a success of the reformation of property tax,it is necessary to establish a series of supporting systems. At the end of this part, ananalysis of supporting systems presents, and suggests that we should establish aperfect real estate register system and assessment system.In this thesis, I am trying to use successful experiences of property tax in othercountries or districts as reference combined with analysis of the necessity of thelevying of property tax, to give suggestions on the establishment of the system of ourcountry's property tax.