China's Property Tax System Design Is Discussed

The Property tax aims at such rea1 estate as 1and, house and etc. The renters or proprietors have to pay certain tax dues for their rea1 estate annually, the sum of tax dues will go up along with the increasing market value of real estate evaluated by professional organizations. Because the property tax aims at such rea1estate as 1and and house, it belongs to property tax system. Once levied,it will become an important part of property tax system.Property tax persists in equity above all, and looks after efficiency as well. Equity is most important, it has positive function to equalize social income allotment. The capitalization of tax property makes apartments price descend, and the consumers'welfare increase following.In the history,property tax had p1ayed a prosperous ro1e.Because of the stable tax source, dependability,income on time, it is the main category of taxes in s1ave society and feuda1istic society. The mission at that time is to raise the public finance income .In modern society, the position of property tax descends gradually,but in most countries and some areas it is the main income source of local governments. The mission at this time most is to equalize a1lotment than raise pub1ic finance income. Now many deve1oped countries and some areas levy the rea1 estate tax,and make it become the main source of local finance income. We can make use of these experiences in the property tax reformation.Currently apartments price in our country remains so high,the funds pressure of the rea1 estate company is heavi1y,the public finance condition of local government is strain,the financial system is pounded at by real estate foam,the rea1 estate tax system is not reasonab1e,all kinds of these conditions request the property tax reformation,only reformation may resolve these problems. The reformation must base on Chinese realities,real estate tax and fee system, and land supply system,and then go forward gradually. Just for these reasons the property tax reformation faces the hard nut to crack,the former land supply system must be replaced,the re1ated laws must be modified,and a professiona1 system of eva1uating rea1 estate must be established. This text drawing lessons from the advanced countries,and combining the lessons,with Chinese realities,then put forward the design of the property tax.