A Study On The Influence Of The Property Tax Reform Over Local Public Finance

Local finance is an indispensable part in a country’s financial system, but also closely linked with the masses. The more revenue of local government, to provide basic public services will be, the more people will create more economic value to live and work in peace and contentment, which contributed to the virtuous cycle of the economy. Tax in our country’s financial system, the central and local sides, take responsibility, according to the organizing fiscal revenue and provide public services. After nearly20years of operation, and achieved certain results, but at the same time it still has some problems. These problems directly or indirectly contributed to the local finance operation.In this background, according to international experience, can provide a stable source of income of local government property taxes, has become a hot topic in the new round of tax reform. However, the property tax reform is a complex system engineering, comprehensive needed before fully implementing the argumentation and studies the impact of each factor. This paper is discussed in the abroad, on the basis of practice and the domestic situation, taking Chongqing as an example, the following several aspects of research:First, this paper defines the connotation of the property tax, property tax is analyzed organization public revenue related theoretical basis, and the effect of foreign property tax with the local fiscal macroscopic analysis. Secondly, combining with the present situation of the pilot cities in our country, and in line with the actual conditions of Chongqing, about the present situation of Chongqing local fiscal revenue, tax revenue present situation and the real estate tax reform present situation has carried on the comprehensive analysis. Again, to get better effect and the direct effect of Chongqing real estate tax reform, according to the current reforms, collecting relevant data, calculate the property tax in accordance with the existing schemes. And on this basis, the relevant econometric model is established, using the measure of property tax revenues of Chongqing real estate taxes and the amount of revenue, the growth rate of two indicators for regression analysis, thereby directly inspect the property tax levy property tax in Chongqing after comprehensive correlation between tax revenue and fiscal revenue, in examining the property tax’s influence on the local fiscal revenue, further investigates the property tax to the influence of local fiscal expenditure and fiscal revenue and expenditure gap. This article from the property tax to the local fiscal revenue, to the local fiscal expenditure and its influence to the local fiscal revenue and expenditure gap, the three angles is studied and discussed. Finally, combined with international experience and China’s specific conditions, further in Chongqing real estate tax reform are put forward in this paper to solve the related problems and puts forward the relevant supporting measures and operation suggestions.Through the above analysis several aspects and Chongqing real estate tax reform before and after the contrast research, the conclusions are:in accordance with the theory and method in this article, in the long run, before the property tax reform, which under the current plan of property tax revenues less, low status in the local fiscal revenue, almost negligible, not to mention instead of business tax as the main local tax. But after the design of the real estate tax reform plan and the actual measurement, the property tax in the proportion of local tax revenue and fiscal revenue increased obviously, the actual influence to the local tax revenue and fiscal revenue increased obviously, provide long-term stable source of income for local governments, have great potential as a local duty, is conducive to the realization of the functions of local government. In addition, from the analysis results of this paper, the property tax levy will not only greatly increased tax revenues to increase general budget revenue, and the increase of fiscal revenue will affect the change of fiscal expenditure, but the impact on fiscal income more than spending, so the performance of local fiscal revenue and expenditure gap is a net negative effect, which is advantageous to the financial revenue and expenditure gap. Therefore, on the perfect supporting facilities and collection technology meet the requirements, under the condition of Chongqing real estate tax reform’s influence on financial revenue and expenditure both in long term and short term is more favorable.