Research On The Impact Of Real Estate Tax On Housing Price

The commercialization of housing distribution which was carried out for the firsttime in our country had deeply stimulating our residents’ housing consumptiondemand since1998when the government abolished the welfare housing distributionsystem.Various factors were driving the price of commodity residential house risingsharply year by year completely disaffiliating the development of the real estatemarket in our country from the rational track.Our government had tried to regulate the price of the real estate successivelythrough the tax and fee policy, the monetary policy, the distinctive credit policy, thedifferentiation proportion of down payment policy, the land supply regulation andmany other means However, due to various reasons, all the control measures had littleeffect, in this situation, the real estate tax policy, as the current final "Sunday punch",was brought to the stage of history. In January2011, Shanghai and Chongqing tookthe lead in implementing the real estate tax policy which had attracting widespreadconcern from different sectors of the society.This article firstly discusses the mechanism of action of how can the real estatetax influence on the housing price from two perspectives—the supply and the demandin the real estate market. Then, on the basis of theoretical study, establishing thecontrolgroup to control the deviation so that the pure tax policy influence would becompletely identified from other impact on the housing pricethrough a more rigorousand appropriate policy effect evaluation tool being popular abroad—Difference inDifference. Then combined with the data from property tax pilot,thisarticlerespectively evaluates the net effect of the real estate tax policy to housing price inShanghai and Chongqing where the policy has been implemented for three years.The result shows that the fall effect caused by the real estate tax policy to thehousing price is4.9%and3.3%respectively in Shanghai and Chongqing suggestingthat the negative correlation exists between the real estate tax and the housing price.Though the suppression effect on housing price caused by the real estate policy isvery weak, the housing price control targets can be realized to a certain extent through the real estate tax in a short period.In the end of the article, on the occasion of popularizing this policy throughoutthe country, some feasible suggestions are put forward according to the previousresearch conclusion after the analysis of the problems that exist in the current realestate tax policy in our country. Only the reasonable tax base, the flexible tax rate, awell-established evaluation system for the real estate tax and the strong legal supportare the right choices for a effective real estate tax reform.