China’s Property Tax Levy Research

Property tax is mainly directed against the land, housing and other real estate, require the lessee or the owner of the real estate to pay a tax basis on the market value of the real estate, and it belongs to the property tax. Property tax, as a kind of old category taxes, have been levied in most countries in the world, and is the main source of income of the local government. But in our country it has not levied because of a variety of reason, and the local government revenue has become increasingly dependent on land leasing revenues, the worsening structure of local fiscal revenues has seriously restricted the local economic and social development.The necessity that property tax should be levied in our country, first of all is to optimize the local government tax structure, provide a stable source of revenue for the local government, alleviate the local government’s fiscal difficulties; The second is to perfect our property tax system, optimize the tax structure of our nation; Third is to distribute our social wealth rationally, alleviate the expanding gap between rich and poor in China expands;The fourth is to improve China’s real estate market price formation mechanism, promote the healthy development of the real estate market. China’s property tax levy is feasible, firstly, property law to provide legal safeguard to the levy of the property tax; Secondly, the prosperity of the real estate market can provide adequate sources to the property tax reform; Finally, Shanghai and Chongqing real estate tax reform as well as the rich practice in the other countries of the world can provide a wealth of reference and reform experience.On the basis of the conclusion of the United States, Singapore, Japan and Hong Kong’s property tax system design, reference of China’s Chongqing and Shanghai real estate tax reform plan, combined with the actual situation in our country, design our country property tax system preliminary as follows, property tax obligations are the property owners or users; object of taxation is the city, town, towns and industrial and mining areas of real estate, not including the rural areas; tax based on the property’s assessed value, since it can reflect the real estate value and time value the tax rate should be the lower progressive tax rate,since it consistent with the taxation and fair principle of taxation; for special populations such as the lower income people,must be given preferential policies to ensure the justice of tax.China’s property tax levy to be gradual and orderly progress, the first pilot and then promotion, advance steadily.The first step, enlarge our country real estate tax reform pilot, pilot selection should consider both the economic factors and the geographical factors.The second step, sum up pilot area’s experience to perfect the related facilities; the third step, combine the land use tax, house property tax and real estate costs to property tax, levy the property tax in a nationwide.