The Influence Of Collecting Personal House Property Tax On Housing Market In China

Since the21st century, the central government has treated the real estate industry as a stanchion industry and given a series of policy to support it, what’s more, the massive influx of hot money at home and abroad and the rising of the land transfer fees caused the house prices rising rapidly in the past decades of China. Some major cities’house prices have been seriously separated from the actual purchasing power of ordinary people, which has seriously affected our citizens’ normal lives. Because of this condition, even more the government took some administrative and economical actions to control rising prices. So much effort went into the event, with so little result. With an unshakeable determination, our government strengthens the control efforts and methods. The personal house property tax is one of those efforts which causes widely discussion recently. Recently the government sets up a new rule that is choosing Shanghai and Chongqing to be experiments with a certain form of personal house property from January28th2011. The personal house property has implemented for over one year, the effects and the problems from the experiment wait for further studying and discussion.This paper focuses on the research on the opening of China’s personal house property taxes in the housing market. Firstly defining the concept of personal house property tax and discussing the difference between personal house property tax and property tax. Secondly introducing the theoretical basis and the practical significance necessity of opening the personal house property tax. Then borrowing ideas from foreign experience in alternative and comparing the personal house property tax policies between Shanghai and Chongqing. After that analyzing the benefit or loss of participants and then studying the influence of personal house property tax on aspects of supply, demand, price, consumption in housing market, the result is that opening personal house property tax increasing the supplies of housing market, but has limited influence on demand. Generally speaking it can to a certain extent restrain house prices from rising too fast effectively, and it also has some effects on optimizing local housing structure. What’s more, it will take some time and meet certain situation to reflect the influence more obviously, and at present the psychological expectation of personal house property tax is more than the practical expectation. Finally putting forward some deeper thoughts of personal house property based on the above research, and then giving some suggestions to help the personal house property tax to spread all over the whole China.