Study On Property Tax Effect Based On Valuation Methods

Real estate tax is an important fiscal policy of regulating estate market, is also an important source of local revenue. China's central government has put forward the idea of property tax levy, according to in other countries's experience of real estate tax, the status of China's real estate market , and the context of tax reform.The reform of property tax system has been a consensus both theoretical circles and government departments, the core part of changes of the system includes translating land institution, the tax reform and adjustment of distributing and Owning real estate (such as real estate evaluation mechanism, housing registration system, etc.), and it is complex study.In this paper, we will study the affect of tax reform on the premises to the participating subjects, such as buyers, real estate development companies, and local government, while we will study the real estate market through the factor analysis method and the quantitative analysis to explore Effects of real estate tax reform.The structure of the article can be divided into the three parts:1.According to the basic situation of China's real estate market, we propose the guiding principle of tax reform by the current Chinese real estate property taxes. While we study some reasons and provide the theoretical support of property tax, such as the tax burden from property tax, regulating person income, improving the tax system,fiscal decentralization and local fiscal system construction. Based on theoretical analysis of the implementation of property tax, the author further discusses the effects of property tax impact, including the impact on the real estate market and the impact on the property tax system, so as increasing costs to maintain building, lowering related taxes of transacting, inhibiting the investing demand, promoting the flowing of real state resources,giving an alternative fo administrative charges of real estate, reducing transaction costs, bettering tax structure, improving the level of tax regulation of the economy,being fiscal decentralization,and clearing the financial powers and rights between central and local government, etc. In addition, the major factor of effects of property taxes is the assessment for the property tax, and so we will construct the the Model for tax base.We put forward market approach in base of both foreign experience and trend of domestic real estate market,further providing the necessary methods and means of the impact effect of property tax.2.On the discuss of the necessary of implementation of property tax, on the one hand, we will analyze of both the drawbacks of the real estate tax system and the negative impact on economic performance, on the other hand, in combination with the construction and development of the tax system on other national and regional real estate, propose the development of our country property tax reform ,including the land transfer system and the real estate tax reform, therefor, we can propose theoretical assumptions for the effect of property tax impact.3.Through the theoretical analysis,the assumptions of future development, and evaluation methods, we can calculate the effects of property tax reform by logical reasoning and quantitative analysis of setting model. Validate the price effects of land transfer reform by mathematical models,derive the relation between annual rent and land transfer,and the relation the two by assuming other conditon unchanged. At last, we will get the impact of the property tax reform for consumers, enterprises and local governments. The methods include constructing of consumer demand function and consumer housing cost function, the devthe supply function of the companies and the total goal function of local government,in addition to the impact effects on the relevant subjects, and the casees studies.Although Property tax reform affect aspects, we can get a basic conclusion by the above analysis. The property tax on real estate development can play an institutionalized effect, it is better for the development of China's real estate market.In addition, it could play the key role for constraining the short-term behavair of local governments, regulating the distribution of incomes, optimizing the real estate market, improving the resource using efficiency of real estate.