The Importance Of Real Property Tax And The Theoretical And Empirical Research Of Its Tax Rate

Recent years, the industry of real estate is growing up rapidly to "pillar industry".Real estate tax system hasn't changed for many years. The revenue of real estate ismuch less than the expenditure of foundational build. Tax on the hold of real propertyis the important aspect of real estate tax reform. Based on the research in existence,the paper summarizes the main problems of the domestic real estate taxes and thecharacters of property taxation in western developed countries, analyzes the conceptof property taxation and then put forward the principles of the real estate tax systemreform in our country and some problems should be paid attention to. The paper put emphasis on the tax rate design problem, and find out amathematic model to restrict the tax rate range. Finally it demonstrates the tax raterange in every district with the correlated data and put forward the operable way toselect the optimal tax rate. The detailed researches are focus on the following aspects:Firstly, the paper summarizes the main problems of the domestic real estatetaxes and the characters of property taxation in western developed countries, explainssome inaccurate knowledge about property taxation, and express the meaning and thenecessity of imposing property taxation.Secondly, using the mature theory about tax system optimization in westerncountries for reference, the paper put forward some practical problems within ourcountry when we carrying through the reform of real estate tenure taxes, and then findout the preconditions of property taxation.Thirdly, the paper analyzes the cost and benefit to the government and taxpayersin detail. It concludes the limited qualifications of new tax system: protecting thetaxpayers' benefit of investment as well as their tax burden with the reasonable areaand ensure the government benefit be improved as well as consider the stabilizationof society.Fourthly, since tax rate design is one of the most important predictions, the paperdesigns a mathematic model of tax rate choice using some of the finance theories inaccordance with the foregoing restrictions.Finally, the paper demonstrates the tax rate range with the correlated data andput forward the operable way to select the optimal tax rate, and concludes the tax raterange for every province.