Design And Calculation Of Property Tax On Real Estate

Since 1998, China's real estate Industry has experienced great development, becoming the mainstay industry of national economy. However, the industry now is encountering several problems and difficulties such as land waste and lose, unreasonable market structure, high vacancy, unpayable price and excessively depending on bank cash.On one side, some scholars had researched to found out that one of main factors what lead to those problems and difficulties is land leasehold system and they proposed that the solution should be making reformation to the system. On the other side, the real estate tax system which formed in 1950s is out of time and have some serious limitations, some researcher brought forward some innovative schemes which are based on foreign real estate tax experience .On Oct,2003,CCP passed 《CCP's Resolutions on Perfecting Socialism Market Economy System》 .In this file, one of resolution says "implement innovation on city-town construction tax and fee ,levy property tax on real estate and cancel the correlative fee when its condition is sufficient" .Then, some experts and scholar advised that land leasehold system and real estate tax system both can be reformed though replacing land remise fund by property tax on real estate, and have designed some primary schemes. Some other scholars did not agree with them.On these backgrounds, this paper is started. It firstly introduce basic theories of tax, property tax and property tax on real estate, then give an reasonable orientation for China property tax, ascertain research object of this paper. After that, we analyze opportunity and goals of the tax. After having clear cognition on it, we choose taxation pattern, clarify its relationship with land remise fund and improve land leasehold system with land annual rent system. Then taxation factors that combined with national specialty are made out. We also put forward tax on excess architectural area and tax on excess land as innovations to form an integrate property taxation. At last, we do simulation and calculation on 4 representative real estates of Hangzhou and analyze the effect of the taxation scheme.I sincerely hope that some of the thoughts and methods would be helpful to government when it making taxation, and provide people with a path to understand the property tax on real estate.