The Study Of Imposing Property Tax In China

Property tax was officially proposed for the first time on the Third Plenary Session of the 16th Party Central Committee in 2003. The imposition of property tax in China will greatly improve our real estate tax system and advance the development of real estate market. In the past five years, academic members and government administrators conducted in-depth research on how to imposing property tax in China, with all preparations carried out steadily. However, because of the extensiveness and complexity of property tax, how to impose the tax is still under study.This paper studies real estate market and its tax system in China, as well as property tax imposed overseas, then raises our property tax system design and make economic analysis on imposing property tax, hoping that it may offer an opportunity to improve the insight of property tax in China.First, this paper conducts thorough analysis on our real estate tax system, concludes its defects, and proposes reform plan. Also, the paper introduces property tax in other countries and summarizes referential experience.Next, in the core part, the paper advances property tax system design in China. Based on the subjections of government revenue and tax burden, the theoretical reasonable property tax rate is derived, which is then applied in an empirical analysis of Shanghai. In the tax base valuation part, a simulation of property tax base is conducted based on residence.Then, this paper makes an analysis on the economic effects of imposing property tax in China. In the research of property tax's impact on real estate price, residence is separated into owner occupation and investment. And combined with demand and supply elasticity, the real estate price after imposing property tax is analyzed. Also, the paper researches into the impact of property tax on local government revenue and government behavior.Finally, the paper analyzes the timing of imposing property tax in China and provides some suggestions on how to implement property tax efficiently.