The Research On Imposing Property Tax In China

In October2003, our government announced that a new system of property taxwhich is tax as real property possession tax will be established when conditions allmature.Jin Renqing,who is the Finance Minister,reported consumption tax andproperty tax is likely imposed during the "eleventh five-year"in China Public Finance＆Taxation Forum in2005.In2007,The State Administration of Taxationemphasized that our country should reform tax system further and research on thesystem of property tax.Except Beijing,Liaoning,Jiangsu,Shenzhen,Ningxia,Chongqingsix areas,Anhui,Henan,Fujian,Tianjin also became real estate tax assessmentsimulation pilot areas.On May25th,2009,The Central Government pointed out thatwe should speed up reform of real estate tax system and research on the imposition ofproperty tax.In the Chinese People’s Politicial Consulative Conference(CPPCC) of2012,Chi Fulin, who is the national CPPCC committee menber and the leader ofChina Institute for Reform and Development,asked impose property tax in his bill.Nowadays property tax has became hot issues.However,it is not clear that what isproperty tax.It is also unknown that what role property tax palys.This paper tries toadopt some theories such as economics,finance and sociology to analyse the rationaleto impose property tax and its taxability.Property as a taxation object of propertytax.In China,there are three rights,land ownership,land use right(construction land useright)and house ownership having a near relative of property tax.Though theoreticalanalysis,this paper tries to describe clearly the relationship between property tax andabove three rights. Compared to advanced countries and regions,such as the UnitedStates and Britain and Hong Kong,our country should impose property tax。China’s real estate taxs and fees have a lot of drawbacks,however, it is not likelyto solve all drawbacks to rely on the property tax. In the real estate field,property taxis a tax for ownership of real estates, which is collected in view of realty ownership.The reform don’t put all taxes and fees into the property tax, only some of them (in accordance with the Ministry of Finance official envisaged, China should put the realestate tax, urban real estate tax, urban land use tax, land value increment tax, so called"four-in-one"). The property tax is a institution system,thus,the design of systemitself and matching system has great influence on its fuction. The focus is to establisha comprehensive system of property rights and real estate value assessment system.Itis the only way to achieve the legislative purpose. The concrete system has a lot oftechnical designs, and it is necessary to take into account economic developmentand people’s benefit in the development, so that the interests of various groups havebeen a certain degree of development.When designing tax rate and tax-free means,itis necessary to take into account the right of residence,which is a fundamentalright,and to ensure the development constitutional direction of China’s social law andeconomic law. Only in this way, tax system will move toward the rule of law andconstitutionalism.