Research On The Relationship Between Urbanization And Governmental Property Income

Urbanization is a special strategy after new century in our country, it’s an important way to drive society change and improve people’s livelihood. Since 2012 the economy growth rate has slowed down, the government policy on economic development has changed from focusing on the speed of economy growth to the economic restructuring. New Urbanization is the most important strategic restructuring mode in the future, and it will play a role in driving growth in demand, maintaining economic growth and optimizing the consumption environment and other aspects. But in the process of China’s urbanization, the highlighted dual economic structure problem and the nonstandard governmental property income system lead the land urbanization developing too fast and the population urbanization lagging behind. Therefore, the establishment of financial and tax system should adapt to urban economy development, and the relevant department should improve the levy system of property taxes for the city, it is a significant breakthrough in support of urban construction.This paper researches on the relationship between urbanization and governmental property income by using the method of literature synthesis, comparative study, and the combination of qualitative and quantitative methods. First of all, this paper starts from the impact mechanism of urbanization on property tax, including the impact of urbanization on economic development, financial and property tax. Secondly, The paper analyzes the change of property tax in the process of urbanization in the United States, and summarizes the revelation from the relationship between urbanization and property tax in American. Then the analysis of the process of urbanization and the change of property income in China is given, and the paper combs the positive and negative effects of the property income. On the basis of theoretical analysis, this paper makes an empirical study, which takes 35 cities as the sample, selects the data from 2000 to 2013, uses the panel data random model. Then the consequence is that property tax has a positive role in promoting urbanization development, and the boost is more obvious for land urbanization, so we should reform property tax system to promote the development of population urbanization; and that the land grant fee and the urbanization of the inverted U type relationship, which shows that China’s land financial system in the early stages of urbanization plays a promoting role, but when the urbanization development to a certain extent, the land finance system will be a hindered factor. Therefore, the land finance system should be reformed to remove the obstacles for the new urbanization construction.On the basis of theoretical research and empirical analysis, this paper put forward the following suggestions based on the empirical conclusion:reform land tax to establish a sound system of land tax; establish the property tax as the main body in the local tax system to increase the property tax accounted for the proportion of local fiscal revenue; reform and perfect the value of the property assessment system; reform the land fiscal system, realize land resources liberalization, and the government should change its role from land owners to land managers; reform the government performance appraisal system; speed up the reform of the household registration system and other supporting systems.