Research On The Design And Feasibility Of China’s Property Tax

The earliest idea of levying property tax was put forward in the party’s10th Plenary Session in October2003, which proposed the idea of the implementation of urban construction tax reform, and the introduction of a unified and standardized property tax on real estate when conditions are met, with the corresponding charges canceled. In2007, there had been simulated real estate tax assessment of the property tax in10provinces and cities. Shanghai and Chongqing are also scheduled to individual housing property tax reform was officially launched on January2011.Since the accession to the WTO has been integrated into the world economy. China’s economy, with rapid economic development, substantial increase in the income of urban and rural residents, and the accumulation of social wealth, but the regulation of the tax system can not keep up with our high-speed pace of development. Therefore, we have to build the property tax system suited to China’s socialist development, catching up with the world. The property tax has been implemented in most countries of mature market economy and many developing countries have also adopted this approach. The property tax levied on those countries has had a huge impact on either the macroeconomy on the real estate market. A proper attitude towards the positive and negative impacts of property tax on the real estate market will benefit the healthy development of the real estate market, the smooth conduct of our tax system reform, and the strength of the country’s macro-control.Starting from the "benefit theory", according to the public economic theory, institutional arrangements in property facing so many choices, the best choice is to treat the property tax as the benefit tax. That is to say allocation of burden is tax burden is based on the level of benefit of public service. Because taxpayers tend to support those whose benefits outweigh the costs benefit from the tax can. improve the efficiency of public decision-making. In this paper, the method of Comparative analysis, literature and foreign reference are used to describe present situation of China’s property tax research, with comparing, analyzing and studying the situation of the levy of the real estate tax in different countries and regions. The reveals the practical significance of the levy of property tax. as well as the analysis of the necessity and feasibility of the introduction of property tax.Through the reference of the experience of foreign and Hong Kong’s property tax levy, and the inspection of their tax system, this paper, according to relevant principles, suggests how to design China’s property tax system elements and analyzes related problems encountered in the introduction process and puts forward countermeasures.