Research On The Impact Of Real Estate Tax On Housing Prices

The real estate industry is the pillar industry of our national economy, its rise andfall is directly related to the rise and fall of the national economy. Since1998, alongwith the rapid development of the real estate market, the housing price increasesrapidly, The excessive growth of investment in the real estate market, leading to anincreased risk of the bubble, the state implemented a series of policies to regulate,including fiscal policy, monetary policy and administrative policy, the real estate taxpolicy is an important means of control, is a powerful lever to promote the real estatemarket for optimal allocation of resources. Because housing prices rising too fast, thestate implemented a series of real estate tax regulation policy, but the control effect isnot obvious. What is the effect of real estate tax on housing prices, how our countryreal estate tax system should be reformed in order to make the real estate taxregulation play an effective role in stabilizing prices and extruded foam, has become anew research topic in academic.This article first analyzes the historical vicissitude of real estate tax system inour country, reveals the problems existing in the current real estate tax system, anddiscusses the changes in real estate tax and housing prices. Secondly according to thedifferent elasticity of demand and supply, tax capitalization theory, modern asset pricetheory and real estate transfer tax theory, analysis the mechanism of action of realestate taxes effects on housing prices, the conclusion is that the real estate tax hasinhibitory effect on housing prices. Then through time series analysis method,analysis the relation between real estate tax and housing prices, and concludes thatthere is long-term stable relationship between the two; Followed by the use of paneldata analysis methods, using our country30provinces1999-2011related data, forpanel model estimation, analysis of real estate taxes effects on housing prices, and theeffects in different aspects; Finally, add other variables in the panel model, from thenational and regional levels to analysis the effects of real estate tax on housing prices.Through a variety of empirical analysis, this paper conclude that real estate tax hasinhibitory effect on housing prices; the effects of real estate taxes on housing priceshas regional characteristic, in the central eastern region is significantly influenced,weak influence in the west of China; Public services expenditure is one of the important factors that affect housing prices, and there is positive correlation. Finally,according to the results of the theoretical and empirical analysis, propose relevantpolicy recommendations on real estate tax policy and tax reform.