China's Legal System Of Property Tax Study

After the tax system reformation in 1994, a new tax system frame, which meets our country's national conditions basically, has been set up. However, because of many factors, this reformation is in a strong transitional color. Though the reformation brings many adjustments to our country's real estate tax system, but as regards whole, basic principle of " unifying the tax law, fair burden of taxation, simplifying the tax system, rational fraction " is not totally carried out in the real estate tax system.The first, a land use fee which covers a long period is damage to continuable use of land resource. Government taking the use fee of a long time means giving up future tax of land. This action is wasteful to tax resource.The second, limiting the supply of land causes the price of land and house rising and the price is much higher than its true value. This phenomenon will mislead the evaluating of land and house, and bring a risk to the banks that provide a loan to the developer of land and the purchaser of house.The third, the current real estate tax system of china is in confusion. Kinds of taxes and fees are difficult to be distinguished. These taxes and fees also aggravate the higher of house price.The fourth, the real estate tax system in rural area is imperfect, the confusion of the tax system brings great burden to rural resident's living, also brings many difficulties to land management.Because of above problems, we can say that the current real estate tax system does not meet the need of economical development of our country day by day. A system of property tax is immediately needed in china. At the Third Plenary Session of the 16th Party Central Committee of the Communist Party of China held in October of 2003, the content of levying the property tax has been written into the communique of the plenary session. This shows, reforming andperfecting the real estate tax system and levying the property tax in good time, have already become the important content of tax system reformation in current. And this will become an important subject of the research field of economic law of our country too.Property tax is common throughout the world, but there are different names existing in various countries, for instance house and land tax, real estate tax, property tax, etc. Though names are different, the content is unanimous basically: First, the property tax adheres to the principles of " wide tax base, simple tax category, low tax rate ". Second, the range of levying tax includes the cities and towns. Third, the property tax appears in the form of local tax mainly in the countries. Fourth, levying tax is according to the assess value of the real estate.The property tax can regulate real estate market, lead people to invest in the real estate market rationally. It can reduce the obtaining cost of the real estate but raise the holding cost through the merger of the tax categories. Thus elevation the quality of the real estate goods will become the leading factor of market competition. It can reduce the land price foam in the development of real estate and reduce the financial risks of real estate loan. This will be favorable to the stability of the financial market. The enormous source of the property tax, bring large income for the local fiscal revenues, too.Our country's current real estate tax system is not a real property tax. The two are different in the name and content. The realistic meaning of levying the property tax in our country exists in following several respects: First, levying the property tax will be the beginning of setting up and perfecting the Chinese property tax system. Second, in a situation that the land is not privately owned, levying the property tax can avoid the distinct contradiction caused of whole property right of the real estate. Third, the tax can change the situation that government thinks highly of exchanging while pays insufficient attention to having in the real estate market in the past.And this change can make distribution of the real estate resource to be fair and reasonable further.Although the property tax can bring so many advantages, there are so many difficulties too. For example, fees and taxes currently account for 60.58% of the average house price in China compared with a world average of 30.28%. Without a properly designed transitional policy, it would be unfair for people who bought their houses at a price that already included years of land use fee to pay additional property tax. These difficulties are needed to be resolved.In this paper, I will try to study the value of the property tax, expound the significance of the property tax to tax reformation of China and put forward some advises to the design of Chinese property tax system.