Rational Thinking On The Property Tax Levy

Property tax can effectively regulate social wealth, give play to the fair performance of the tax, adjust and standardize the current real estate tax, and build a stable and reasonable local tax system. With the rapid development of China’s real estate market, property tax has become an important issue of tax reform, and property tax reform is not just a levy of new tax, but a comprehensive systems engineering.It is expected that the introduction of the property tax can resist the phenomenon of rising house prices. What is the relationship between the property tax and the house prices? If the property tax can play an effective role in regulating the rising house prices? From the current Components and root causes of rising house prices, we can see that the supply and demand still decides the house prices. The levy of property tax can not resist the rising house prices in the short term. The levy of new taxes may increase the house cost and push up the house prices indirectly. And the conditions of property tax levy are not ripe now, the hasty levy must give a great impact on society. At the present stage, monetary policy is the most effective means to regulate the house prices.Many facts show that the proportion of the speculative housing demand is increasing in the total demand in China’s real estate market. It Can be said that the speculative housing demand is one of the reasons of upward trend in demand on the market. In the long term, the sustained and stable levy of property tax in aspects of housing tenure according to the value of market assessments will be bound to hit the speculative buyers in the market. It can also make some idle holders of the housing into the real estate market for the save of cost and gradually change the the supply and demand in the real estate market, and slowly change the concept of people’s housing consumption, then make real estate transactions be remained at a stable development trends. The Property tax has a long-term indirect imperceptibly impact on the housing prices.In order to ensure the stability of China’s financial revenue, the healthy operation of the real estate market and the gradual improvement of residential housing. the property tax should be treated with caution. Only on the basis of full demonstration and extensive investigation, the rigorous scientific design of the property tax system, and selection suitable areas for pilot, the can be extended to other areas and then to the country gradually.