Transfer Of Land Reform And Property Tax Issue Study

Land transferring fees which in recent years constitute a huge part of the financial revenues the local governments stir up large scale of land transferring in short time from the governments. Problems such as the swelling demand of land and the too fast rising of land price come up when the developers could get the benefit brought by the appreciation of land through years, after they pay all the land transferring fees for the following decades at the first time. However, the reform of the tax system during the owning period progresses in a slow pace, which is illustrated by the problems such as narrow taxing scope, unreasonable aspects of taxing basis, difficult taxing and supervision, and the backwardness of the increase of tax revenues from that of the value of real estate. In the U.S., situation is different. There are only trading tax and income tax in the phase of developing and operating, with some policy privileges, which actually represents a relatively lighter tax burden. But after the real estate trading, the owner of the real estate must pay annual real estate tax under uniform tax rate and supervision. What's more, only the residence enjoys tax deduction and discount. As a matter of fact, the lighter tax in the phase of developing and operating effectively prevent short-sighted acts, while the strengthened tax in the owning period stimulates the economical supply from land and real estates and frequent trades, which in consequence is beneficial to the optimization of estate elements. Moreover, since 1986, tax systems in the world have developed in line with the trend of'broadening tax scope, lowering tax rate and simplifying tax rules'. Therefore, foreign countries are generally enjoying stable tax revenues due to the low tax rate and broad tax scope. In addition, less various items of tax do not only avoid unfair repeated taxing which may be brought about by complex items of tax, but also decrease taxing and supervising cost and enhance taxing effectiveness.This paper come to find it necessary to reform the system of land transferring fees and begin taxing property after analyzing the problems with the current system of land transferring fees and real estate taxing system. The author holds that it is the objective of property taxing reform to transform land transferring fee into property tax and puts forward a proposal for its reform, in which we should unite the land transferring fees which are paid at one time into property tax which are paid on an annul basis. Advantages and disadvantages of this proposal as well as some difficult knots are deeply analyzed. Thereafter, with reference to the experiences of successful property taxing and the real situation of China, this paper explores the design of property tax system, proposes its taxing scope, basic calculating methods and carries out empirical research and statistical analysis on the market value evaluation of real estates, which is the biggest difficulty in the property taxing. Mass Appraisal is adopted and the statistical software SPSS15.0 is employed in the statistical analysis on the 30 High-rise apartments in Xinpaifang, Yubei district of Chongqing. The author finally gets to the model of multiple linear regression. What are discussed in the final part are some issues relevant to property taxing and its corresponding measures.