The Research Of Real Property Tax

Estate problem is one of the hottest topics in the current economics of China. The high price of estate lasting for a long term has been the key factor affecting the social stability and quality of people’s life, people pay close attention to the way to stabilize the price and improve people’s living conditions effectively. Imposing real property tax is believed to be the effective way to control the price of estate and solve the problems of the real estate in China. The formulation of the real property tax appeared for the first time in the <Resolution of the problems in the socialist market economy system> on the Third Plenary Session of the16th Party Central Committee in2003. The call of real property tax has been increasing in our country, but there are different opinions for the functional orientation and the designing of real property tax system (The word "real estate tax" is mentioned frequently recently, but this paper still use the word "real property tax" to remain same with the previous studies). This paper is based on the current situation, and started the research of the function of the real property tax and the tax system designing problems.At first, this article introduced the realistic background of the levy of real property tax, that’s the development of the real estate industry in China is too fast, and the price of the real estate is too high to afford, investment scale is too large, and the real estate needs standardization. Then this paper obtained the basic definition of the real property tax by carding the concepts of the property tax, the real estate tax, and the real property tax, as the foundation of the next research.On the basis of review in the domestic and international literatures, this paper made the theory analysis of influence of the levy of real property tax on real estate market and finance income. The analysis of the influence on real estate market by the levy of the real property tax based on the analysis of the changes of the demand and supply in the market, this paper argues that the levy of real property tax may cause a decline in demand and growth in supply, and argues that the levy of real property tax may cause decline of the price in the real estate market by the analysis of the general equilibrium model. The analysis of the influence on financial income by the levy of the real property tax is made mainly through the two aspects of positive and negative effects. This paper argues that the levy of real property tax will give a long-term and stable sources of revenue for the local governments, and the finance of local governments will get rid of the dependence of the income from the land-selling, but the decline of incomes in short term also may make negative effects.In order to test the results of the theoretical analysis, this paper made the econometric analysis based on the related data, it measures the effect on the price of the real estate and finance income made by the levy of real property tax. This paper regarded the five taxes directly to the real estate (house property tax, use of urban land tax, land value-added tax, farmland occupation tax, deed tax) as the substitute for the real property tax in the analysis, then it made econometric analysis for the burden of real property tax and the price in the real estate market and discovered that the price of real estate market and the burden of real property tax are negatively correlated. This discovery proved that the real property tax may make the regulation of the price in real estate market. This paper also estimated the income of real property tax income of Shandong2015and the proportion of local financial revenue, based on the" Twelfth Five-Year Plan" in Shandong province. This paper argued that the real property tax may become the main tax in the local tax system, and bring a stable resource to the local revenue.Then the paper made the comparison of international experiences and references. This paper mainly introduced the system of the real property tax in United States, United Kingdom, Japan, Hong Kong and Taiwan, this paper focused on the study of the purpose of the real property tax and the actual effect in these countries or areas, in order to help China to determine the function of the real property tax. The function of controlling prices in the real estate market and raising local financial revenue may be proved by the international experiences. In addition, this paper also introduced the real property tax systems in these countries or areas, in order to help designing the real property tax system in China.Finally, according to the functional orientation and the basic principles in China’s current tax system reform and lessons from international experiences, this paper put forward a preliminary plan to the designing of China’s real property tax system. This paper first presented the defect of the current situations, then it presented the basic principle of the designing of real property tax system, the specific provisions and the supporting measures, then it also explored the reform of the revenue of land leasing after the levy of the real property tax.