The Impact Analysis Of Property Tax Levy On Real Estate Market

The real estate industry is the pillar industry of our national economy, and it plays an important role in economic development. In recent years, China’s real estate industry has developed rapidly, and the real estate prices have risen considerably. Facing the increasingly serious real estate bubble phenomenon, the use of tax means to further strengthen macro-control of the real estate market will become the focus of macroeconomic regulation and control of real estate market in future. Following Shanghai, Chongqing property tax pilot projects after one year, the property tax to expand the pilot projects has been imperative, property tax pilot projects and further reform of the property tax issue is becoming the hot topic of academic research. Based on the property tax as the object of study, we make an analysis of origin, development and change of property tax in our country, focusing on the impact analysis of property tax levy on real estate market, with a view to China’s real estate pilot projects promotion and further reform of the property tax to provide some policy suggestions and theoretical reference.In research methods, this article draws on a variety of different theories, combining methods of theoretical analysis with empirical research, making an impact analysis of property test levy on real estate market, separately from dynamic game model and the static model of supply and demand, among which theoretical analysis has been comprehensively made. Based on property tax systems in the developed countries and regions, we do an analysis of problems in China’s current real estate tax system. And on the basis of theoretical analysis, with the foundation on a large number of statistical data, we can build model of panel data to do an empirical research on the influence of levying property tax on real estate market in China, and the conclusion is:the local finance expenditure and disposable income per capita of house prices have a significant positive effect, real estate supply and demand are effectively inhibited by property tax, according to the empirical results, due to the shift of the tax burden, property tax promoting prices effects are greater than the effects to curb rising prices, and prices have positive correlation, but the property tax plays an important role in curbing speculative investment demand, which is also one of the main purposes of levying property tax. Then taking Shanghai which is a pilot city as an example, we can do a corresponding case analysis. On the one hand, the impact of Shanghai pilot property tax policy on Shanghai real estate market has been analyzed, on the other hand, the comparison of the set of pilot program of Shanghai and that of Chongqing has been made, which the author thinks the design of duty-free area in Shanghai is more reasonable, whereas the design of tax rate in Chongqing is more reasonable.In the last part, according to empirical analysis, foreign reference and case analysis, the author puts forward four policy proposals which are conducive to the realization of expanding the conduct tests of the property tax and future reform of property tax, which are as follows:we should adapt gradualist approach to reform, namely, in the promotion of pilot project, we can draw on experience from the two pilot cities, and combine advantages of two sets of pilot projects. Besides, through the theoretical study and practice, we can gradually adjust the tax rate as well as the coverage of the taxation, so as to minimize resistance in the promotion of pilot project; furthermore, we ought to make sure that the purpose of the property tax reform is to improve the real estate tax system, and to gradually develop into a more stable revenue source for local government, which is the direction of the property tax reform; in additional, relevant systems of the property tax ought to be improved. For example, the managements of the real estate property and the property register should be strengthened, the real estate valuation system should be enhanced, and the local government should be given a larger administrative power of levying property tax; during the promotion of pilot projects, local government can be authorized with the power of self-decision making according to the local condition on the aspects of collection rules and administrative methods; with the carrying on of the property tax conduct tests and property tax reform, the government should gradually improve housing security system, increase the effective supply of housing, so as to fundamentally solve the problem of real estate price bubble.