Legal Consideration Of House Property Tax Reform

Although government has taken a series of measures on the price of the real estate, there isno perceptible effect. Then taxation regulation has been given high expectations. Because of thegreat changes of economy and society, the current house property tax system is unable to fulfillthe requirement of real estate development, and exert a macro-regulation function. The StateCouncil authorized the City Council of Shanghai, Chongqing to carry out property tax reform in2011. There were some problems in this reform pilot, however the key of resolving theseproblems is to improve and deepen the reform. This thesis starts with the background of houseproperty tax reform, comprehensively analyzes the current situation and deficiency of houseproperty tax system in China, and summarizes the necessity of its reform. Then it points out theproblems in this reform pilot based on the basic principle of tax law and advises that extendingreform to the whole nation should under the guidance of the basic principles of tax law. At last,to improve the house property tax reform in our country, I put forward my own proposals.The first part is the analysis of the current situation and deficiency of house property taxsystem in China. In this system there are four problems that are low level of legislation,unscientific tax base, unreasonable tax design, confusion of taxes and fees.These problemsmake it difficult to keep pace with the rapid development of real estate market.The second part is the necessity of house property tax reform. From the improvement ofour tax system, reasonable distribution of housing resources, guidance of rational housingconsumption, and the transformation of government functions these four levels to summarizethe necessity of house property tax reform.The third part deals with the legal issues of house property tax reform in Shanghai andChongqing. This reform pilot not only violates the principle of tax legality but also the principleof tax equity. It lacks protective measures for taxpayers’ rights. This part focuses on the illegalproblem of this reform pilot.The fourth part discusses the guiding principles of house property tax reform. Houseproperty tax reform should adhere to the guidance of three principles that are principle of justice,principle of tax legality, principle of tax equity.The fifth part is about some proposals on improving the house property tax reform. Aftersummarizing the experience and shortage in reform pilot, I present some improving suggestions.House Property Tax Regulations should be improved its legislation level. Tax system should be designed accord with the basic principles of tax law. It is necessary to expand the proportion ofhouse property tax in local finance revenue and adjust the structure of tax system. In order toreduce the resistance of reform, it is better to pay attention to the protection of the taxpayers’rights.