The Research About The Designing Of The Property Tax Rate

The reform of property tax is an important part of the tax reform of China. Itplays an important role in the Chinese realty business as well as local government taxincome. The paper discusses the rate of the property tax from four aspects. The paperstarts from the theory of the optimal tax, the relationship of the rate and the taxburden, the theory of measuring the income of taxation and land finance. On the baseof these theories, the paper researches the influencing factors of property tax. The rateof the property tax is affected by many factors, such as GDP, personal income, thevalue of the assets, living area per person, the income of present property tax and thetype of the house. Considering these factors, the paper wants to design the reasonableboundary of the rate of property tax by using the data of Guangzhou. In result, thereasonable boundary of the property tax is from0.18%to0.67%.