The Research On Property Tax System Design

In recent years, with China's rapid economic development, the real estate industry also grows rapidly. It has become a pillar industry of China's national economy. Especially the first and second tier cities, economic growth, investment, employment and taxation have deeply replied on the real estate industry. Serious fluctuations in prices, whether irrational rocket-up or sudden decline, are bound to have great impacts on the sustained, stable and healthy development of the national economy. However, China's current real estate tax policy which has not received any major amendments since 1994 has significantly lagged behind the development of the real estate market. Moreover, it is not in line with international practice. In current Real estate tax system, there are so many urgent problems. Such as:various tax items, double taxation, too narrow tax base; unreasonable taxes set, heavy on flow, light on maintain; differentiated taxes set; matching system is not perfect and so on.Regarding to the rapid development of real estate and the serious out-time of the tax system, tax reform and property tax imposing at an appropriate is imperative. Property tax will improve our current tax system, filling the blanks meanwhile adjust income, narrowing the wealth gap to achieve social equity, to help local governments get out of "land finance" constraints, to achieve sustainable development and regulate the real estate market to optimize the real estate resources.Property tax, widely applied in the developed countries as a main source of revenue for local governments, has been a major role in adjusting income gap. While China's property tax levy is still in constant demonstration stage, this thesis firstly combs the current real estate market and its tax system, analyzes and demonstrates the need for property tax levy. Secondly, it analyzes factors that have great influences on property such as levy land property system, property rights issues and financial disclosure system shortcomings, other institutional barriers, technical barriers. Finally it demonstrates possible impact on real estate, housing, financial institutions and other economic, environmental and government, residents and other of economic entities after the property tax levy.Through profiling Developed countries or regions'property tax systems in order, it summarizes that most of the countries and regions maintains the tax aspects dominated the real estate tax while property tax is the major revenue sources local government, taking a more "wide tax base, less tax items, low tax rates" as taxation principles and appropriate tax breaks and good supporting measures etc. proposing property tax system design and supporting measures through summarizing the developed countries and regional property tax, also combining with China's realities. It clearly states the principles we should follow when designing:stability, benefit and burden share. It specifies differentiated institutional designs of the taxpayer and the tax objects to determine the tax rate setting, incentives and other needs according to China's reality. The choice of tax basis should base on assessing the value of property tax per international practice. Relative supporting measures should serve to improve property rights in China's real estate, real estate value assessment system and the relevant legal systems.