The Property Tax Impacts On The Housing Price

Since 1998,China cancel the welfare housing distribution system,the real estate industry has entered a rapid development period,and it has become a pillar industry of our country,the house price rising fast at the same time.According to the housing price to income ratio of 35 large and middle cities from China in 2015 released by Shanghai e-house real estate research institute.Shenzhen's housing price to income ratio is as high as 27.7 times,Beijing and Shanghai's housing price to income ratio is about 20 times,and the most of large and middle cities in China,their housing price to income ratio have been more than six times,however,in general,housing price to income ratio in 3-6 times is reasonable.Such high prices will severely restrict the residents' spending power and living standards,not only affect the healthy development of national economy,but also threat to the harmony and stability of social.According to the problem of housing price,the government has released the land policy,financial policy and "purchasing restriction rules" and so on,to intervene on the real estate market.But it did not curb the rising house price.In 2011,Shanghai and Chongqing issued a personal property tax reform pilot program,open the prelude to levy a tax on personal property in our country.Levy a tax on personal property is not only related to the immediate interests of the residents,but also the whole national economy,so at the time,that the property tax is going to promoting to all the country,it become very necessary to study the effect of the personal property taxes on house price.This article introduces the national property tax policy and analysis the property tax policy in our country,respectively from two aspects of the theoretical analysis and empirical analysis to explore personal property tax impact on housing prices,finally put forward a reasonable personal property tax related policy suggestions.First of all,starting from the theory of supply and demand,analysis respectively to impose personal property tax's influence on the demand side and supply side;By using the model of a tax on analysis of the ultimate tax end-result of personal property taxes,Introduce four quadrant models intuitive shows the impact mechanism of individual property tax is imposed on housing price.On the empirical analysis,this paper uses difference-in-difference(DID)method,which is popular in recent years in the field of public policy and project implementation effect research.We will collect personal property tax policy as a "natural experiment",select the appropriate control group,select the appropriate control variable control heterogeneity between the two cities,will impose personal property tax to maximize the impact of housing price.Through the empirical study found that personal property taxes have significant inhibitory effect on the local housing prices,levy personal property tax in Shanghai housing price fell about 5.77%per square meter,fell about 16.82%in Chongqing area.At the end of the paper,based on the results of theoretical analysis and empirical analysis,we put forward to some reasonable suggestions about the personal property tax policy.First,we should adopt the principle of "wide tax base",expanding the scope of the personal property tax levy;second,according to the larger gap between the rich and the poor in our country,we should set up reasonable differential tax rate;third,we should establish a reasonable evaluation system,for the future lay a foundation to use the market value of the real estate as the basis of property tax;Fourth,complete the relevant legal system about property tax and speed up the construction of low-rent housing,affordable housing,making the real estate market healthy and smooth development.