Study On Impact Of Property Tax On Local Government Revenue

With China’s economic take-off and people’s living standards rising, the rapiddevelopment of China’s real estate industry, has been included in the State Councilissued the ten national pillar industry. The prosperity of the real estate transactionwith such real property have been expanding, the objective is also caused by asubstantial increase in real estate tax base. Property tax is the PRC, units andindividuals outside of their production, management, housing and other buildingsused by the building value of a property tax levy. Property tax has a "benefit-cost"corresponds to the characteristics of the main sources of tax revenue as the place,both in the public finances content requirements, but also easy to become the de jurelocal government’s main source of income. China’s current real estate tax aspects ofthe transaction also primarily taxed both the real estate market can not meet thedevelopment of modern public finance does not conform to the definition of propertytaxes. Property tax levy system improvement has huge significance. At present,China’s tax system is based on direct taxation, indirect taxes, supplemented, and inindirect taxes and income tax is the main tax, property tax role and position minimal.Property tax reform will establish a sound system of property taxes, property taxes inour tax structure highlights the status and role.This article based on the principles of public finance theory and logic, on theHangzhou local tax situation and the "land finance" issue a more comprehensivediscussion of international experience, to fully consider the social basis of propertytax reform, analyzes the current real estate tax system exists problem, theory withpractice, property tax reform measures proposed to explore Hangzhou property taxreform.