Property Tax Levy On Real Estate Prices

Since 1998, China concluded its welfare housing distribution system, China's real estate market is rapidly warming. Real estate is a lower growth of many related industries can be huge space for development of the industry, it soon became a pillar industry of national economy. However, with the rapid development of real estate, many questions are beginning to come out, such as high land leasing, real estate tax system is not perfect, of building land occupation of cultivated land, etc., in which the conflict is the most prominent real estate prices rose more fast. Rising real estate prices led to concerns about the community, on the one hand makes these cities, price earnings ratio is too high, residents purchase difficult; the other hand, may lead to the real estate bubble, triggered the financial crisis. Therefore, how to effectively inhibit the rapid rise in house prices has become a pressing issue of concern to the government. To this end, the 20th century, late 90s, the government first made the real estate market supply management, has introduced a tax relief, reduction of land transfer, adjust the housing supply structure and a series of measures to try to reduce development costs and prices purposes. Past two years, the Government's public policy from supply management to demand management. For example, the increased proportion of down payment and mortgage interest rates. Still, prices remain down. Now the government wants to levy property tax to reduce prices. The problem is that property tax impact on housing prices in the end?After years of research and policy preparation, property tax reform in the framework of the basic form: about the current property tax, urban land use tax merged into a phase of real estate to maintain a unified collection of property tax, property tax and to whom the overall size remain almost the same. This analysis is also based on this framework, on our property tax on real estate prices is analyzed. At present, the property tax levy has been demonstrated in a phase of research in this context the introduction of property tax impact on the characteristics of real estate prices will help to clarify the property tax on real estate prices affect the mechanism for the Improvement of Housing control system of the real estate market to provide a theoretical basis. Property tax impact on house prices in the end, is China's real estate market is a controversial issue. In theory this paper, the first of our real estate market prices are surveyed in detail and analysis, and of our current analysis of the real estate Market Tax System, the basic concept of property tax has defined to clarify the future of property tax After the impact effect on real estate prices. And then were constructed from the perspective of the real estate supply and demand of consumers - the developer model and investors - developers model and build from the perspective of real estate speculation in the real estate bubble model theory, theoretical models suggest that property tax impact on the property market is housing prices in the short term, but long-term effect is not obvious; in empirical terms, this thesis, 1999-2009 30 provinces (autonomous regions and municipalities) of the panel data on the theoretical models were tested and typical urban experience (Kunming) Behavior.Empirical test results show that the real estate market prices and property tax is a negative correlation between the empirical test results show that the basic proposition of this paper. And panel data empirical results show that the property tax on real estate prices in different parts of the impact of differences exist, and the central and western regions of the country, the property tax can effectively suppress prices, but the property tax has the effect of the eastern region less obvious. This paper argues that the property tax levy, there is help to curb speculation in the real estate market, regulate the real estate market; property tax levy will reduce the access threshold for buyers to make housing sales price has dropped significantly. Therefore, compared with the current real estate tax, property tax has a more pronounced inhibition can effectively prevent the real estate bubble.