The Real Estate Tax Reform Study Under The Perspective Of Public Finance

With the speedy development of China’s economy and the continual improvement of Chinese people’s living standards, the real estate industry is rapidly developing, which has been listed as one of the top ten national fundamental industries promulgated by the State Council. The prosperous real estate transactions widen the real estate scale; which has also caused a large increase in the real estate tax sources.Estate tax is a property tax. It is levied for the production, business, living, other housing and the value of the buildings, which is held by the units and individuals inside and outside the People’s Republic of China. The estate tax has characteristics corresponding to those of the "benefit-cost" ratio. It works as a local main source of revenue, not only consistent with the requirements of public finance connotation, but also easily becoming the main source of income for local governments in the jurisprudence. Emphasizing on the fiscal revenue function of the estate tax, playing its role in raising public funds for local governments, is to strengthen the tax revenue of the government-taxpayers’ contractual relations, as well as to emphasize the obligations of local governments to provide local public services. The tax for buildings in our country is now mainly on trading links, which cannot adapt to the development of the real estate market or the definition of property taxes by modern public finance.The Real Estate Tax has great significance of an improved taxation system. At the moment, our tax system is based on direct taxes, supplemented by indirect tax which is mainly an income tax, with the property-tax having little influence. The reform of real-estate taxation will improve the property tax system, and make it work better in tax the structure.According to the property tax theory, property taxes can provide stable tax revenues as the local level tax, which when given to the government, provides effective public service. Therefore, the reform must be on the service for public finance property tax which corresponds to the local public service which has the closest relationship with the most people, such as education.This article is based on the principle and logic of public finance theory, and the details of the condition of local taxes is also discussed, according to national conditions and shared international experiences, comprehensively considering the reformation of the social base, linking theory to practice, and exploring the direction of our house property tax reform.