Research On Land Value Increment Distribution Under The Urban-rural Land Market

With the development of social economy, the binary of the urban-rural land market exposes some drawbacks gradually. This model is unable to adapt to the economic development. It is urgent to establish an urban-rural land market. Urban-rural land market means that local governments will lose "the second government finance". It is a blow so serious for the local governments that they would strongly oppose to the land market integration. In order to realize the land market integration and promote the equal development in urban and rural areas, we must find the new revenue sources for local government and the balance of local government revenues.The basic structure and content of this paper are as follows:The first part is about the basic concepts and theories. In this section, the concepts have been defined and theoretical basis has been introduced, the theories include land property rights theory, Marxist theory of rent, land value increment distribution theory, land tax theory and the theory of administrative fees.The second part is about the distribution of the land value increment under the binary of the urban-rural land market. In this section, it describes the systems of land acquisition and collective construction land circulation, and then analyzes the problems of current land rent, taxes, fees system, according to the distribution of land value increment and the problems under the binary of the urban-rural land market. The problems of land value increment distribution under the binary of the urban-rural land market are been revealed, which lead the land value increment distribution unable to satisfy the need of social development.The third part is about the allocation of land value increment under the urban-rural land market. This section is the core part of the paper. Firstly, the establishment of rent and land charges system has been introduced, according to the reform principles of "define rent, clean money" and the improvement of the existing systems of rent and land charges. Secondly, it introduces the construction of land tax system under the urban-rural land market, according to the reform principles of "simplify tax system, expand tax base" and the improvement of the existing tax system. We propose some measures to alter the existing tax system, such as levying property tax, estate duty, gift tax, idle land tax, barren land tax. Finally, we take the property tax as an example, estimating the value of the reduction of land transfer revenue. The data of residential properties in Shanghai in 2010 is set as baseline, the real estate tax income of Shanghai Under the existing tax system is calculated, and then property is calculated according to the data of residential properties in Shanghai in 2010. The reduction proportion of land transfer revenue is estimated based on the gap between them.This research attempts to predict property tax and trace back the reduction proportion of land transfer revenue based on the measure that urban-rural land rent, taxes, fees system regulate land value increment. When the land transfer revenues change within the scope of this ratio, property tax can make up the gap of land transfer revenue to some extent. Local government revenue can achieve a balance. In contrary, local government revenue will be sharply reduced. This will hinder the establishment of urban-rural land market. Therefore, we must reasonably estimate the reduction proportion of land transfer revenue, maintain the proportion, and make a balance of the local government revenue.