The Impact Of Real Estate Taxes On Real Estate Price

ABSTRACT:Since China’s housing system reform in1998, the original welfare housing system was abolished, the real estate market entered to the market stage, this greatly promoted the demand of real estate market, the real estate industry developed rapidly with increasingly high house price level. The real estate industry has become a pillar industry of our national economy. However, during the development process of China’s real estate, the government has carried out large-scale real estate regulation to ensure the healthy and stable development of real estate market, but the effect is not significant. Real estate taxes policy is an effective instrument for real estate market regulation and social-economic resources distribution. It provides revenues for local government, and plays a very important tool for real estate market macro-control. Along with the implementation of land supply and finance policies. In recent years, the discussions on housing prices and real estate taxes reform are increasing. Based on this background, this article tries to start from housing prices and real estate taxes, and discusses the effects of the real estate taxes on housing prices, and the regional differences.This article first reviews the relevant literature at home and abroad, and compares the model and method of house price and real estate taxes. Meanwhile, eight items taxes, which have directly effect on the housing prices in the field of real estate, are selected to carry on the empirical research with reference existing research results and combines with China’s real estate situation. Applying the data of1999to2011of selected sample cities, using spatial lag panel data model, we respectively analyze the effects of the real estate taxes on housing prices of31province nationwide. In particular, the more developed the region is, the more obvious the effects are; with the time goes on, the fixed effects of the real estate taxes on housing prices are gradually increased; the business tax in the circulation processes have a great boost effects on the housing price, while the effects of other taxes are relatively small; the effects of the real estate tax on property circulation are temporarily non-ideal.Finally, based on the conclusion of this study, this article puts forward countermeasures and suggestions to regulate the real estate market by using tax means.