Research On The Reform Of The Personal Housing Property Tax In China

Since the reform and opening up, China’s economic and social situation happened great changes, and the income level of the residents have greatly improved, real estate has become an important part of personal wealth, as a special commodity, it has durable consumer goods and investment value. And in recent years the process of urbanization and the acceleration of the local governments rely on the land finance, house prices soared all the way, take Shanghai, housing fold from 3327 RMB per square meter in 2000 rose to 31890 RMB per square meter in 2015, for a total increase of about 9.6 times. For the real estate market overly active, the "12th Five-Year Plan" proposed necessary to study advance housing property tax reform, to personal housing impose house property tax, one of the purposes is to adjust income distribution, promote social fairness; the second is to guide residents reasonable housing consumption. Then, the State Council in January 2011 arrange Shanghai, Chongqing as the first batch of pilot cities in China’s real estate tax reform, began to levy personal housing property tax.Real estate tax has three functions, one is to control prices. Theoretically, the Levy of property tax has a certain role in regulating prices. But at present, China’s urbanization rate is accelerated, the new inclusion of urban residents will bring great demand for housing. But the major cities housing prices rise far greater than the real estate tax rates. Therefore, the real estate tax regulation is not realistic; two is the main source of local fiscal revenue as the main source of. Since 1994, China’s implementation of the tax system, local government revenue, the proportion of total revenue decreased to about 50%. And local government expenditure is still maintained at around 70%, was once more than 80%. Only transfer payments can not make up the local fiscal gap, so the local government began to rely on land revenue, land transfer revenue currently accounts for 50%～60% of local government revenue, make up the gap of nearly 80%. This approach is obviously unreasonable, the government continued to borrow, sell, and also gave birth to unreasonable prices, is not sustainable. According to statistics, if the stock of "the housing into the real estate tax range, and then calculate the tax rate of 1.5%, to make up for the local fiscal gap of 11.3%. But this is in the case of no adjustment to reduce the transfer of land. Therefore, in the long run, real estate tax cannot become the main source of local fiscal revenue; three is positioned as the adjustment of income distribution, narrowing the gap between the rich and the fair. At present, China’s Gene coefficient of income and the Gene coefficient of family property are far more than the international warning line, the gap between the rich and the poor is obvious. At present, our country mainly rely on personal income tax to adjust the income distribution, but it mainly comes from the working income, most of the low and middle income families. In fact, the Gene coefficient of China’s family property as early as 2012 reached 0.73, the top 1% of the family occupies 1/3 of the property, while the low end of 25% of the family is only 1%. Real estate is an important part of the property, the higher income of the population in order to invest with several sets of real estate at the same time, low-income people can only rent a living. This paper argues that the individual housing property tax should assume the fair function, and become one of the measures to adjust the income distribution, narrowing the gap between the rich and the poor.In this paper, from the perspective of social equity, analysis Shanghai and Chongqing property tax plan. And learn from the United States, Singapore, South Korea, the United Kingdom real estate tax, on this basis, designs tax system for personal property tax, including:brought inventory into the levy object, the real estate market value as the tax basis, The preferential tax set on certain duty-free area, etc. And the feasibility of the scheme is analyzed. At last, the paper puts forward the policy recommendations. to speed up the establishment of the national individual housing information system networking; introducing advanced property assessment techniques; give a certain degree of local autonomy; Jane and taxes, reduce land leasing.