On The Legal Regulation Of Land Finance In China

To some extent,the reform of the tax distribution system implemented in 1994 straightened out the interest distribution relationship between the central and local governments,especially at the provincial level,but the reform did not do a good job in the balance between the financial power and the administrative power between the central and local governments.This phenomenon brings about China's financial power gradually gathered in the central government,and the administrative power gradually relegated to the local government.The financial needs of local governments cannot be met through budgetary income.China's imperfect land system provides an opportunity for local governments to increase extrabudgetary income,so land finance comes into being.Although land finance can bring high revenue generation to local government in a short term and promote local economic development,while due to the scarcity of land resources,land finance only focuses on the immediate interests and ignores the longterm interests development and income distribution.This kind of fiscal revenue will bring hidden financial risks,economic risks and social risks.As a special phenomenon in the process of economic development and urbanization construction,land finance reflects the deficiencies in China's local fiscal and taxation system and the deficiencies in China's land management system and land expropriation system,such as serious waste of land resources,unsustainable income of land transfer,and the conflict between the government and farmers in land expropriation.This paper will proceed from the formation process of land finance and the causes of the formation of land finance in economic,institutional,and legal aspects,and analyze the reasons why land finance in China brings risks to local government revenue.This paper is based on the theory of financial sustainable development,the theory of absolute land rent and the theory of fee to tax,combined with China's specific practice,and gains experience from the progress of land tax legislation in the United States,Japan and the United Kingdom in order to propose legal regulations for solving the current dilemma of China's land finance.In order to ensure the steady development of China's economic construction and urban infrastructure construction,reduce the economic pressure of ordinary people on buying houses,it is necessary to change the existing model of unsustainable and intermittent fluctuations in land finance in China.First of all,we can improve China's land management system by amending the land management law,so as to realize the “same land and equal rights” in collective operating construction land and state-owned construction land in the capital market.Secondly,we can improve the local government's management of land fiscal revenue and expenditure to maximize the efficiency of fiscal expenditure.Last but not the least,we can actively promote the legislation of real estate tax in China,reduce the proportion of local government's non tax revenue,and promote the development of various land related revenue towards the direction of tax system.This paper is divided into six parts when explaining the legal regulation of land finance: the first chapter mainly describes the background,significance,literature review,research ideas and methods,as well as the innovation of this paper.The second chapter discusses the connotation,formation process and causes of land finance in China.The third chapter analyzes the theoretical basis of land finance in China from three aspects: the theory of fiscal sustainability,the theory of absolute land rent and the theory of fee to tax.The fourth chapter describes the difficulties faced by the current land finance in China.This part mainly focuses on the current situation of the land finance in China,and makes an in-depth study on the explicit or implicit risks existing in the land finance,including land resource utilization,tax revenue and expenditure,and social affairs.In order to point out the necessity of promoting the transformation of the land finance,improving land management,land tax and other legal systems.The fifth chapter is the study of the development of foreign land tax legal system.Through the comparison with the current land finance in China,it analyzes the experience we can learn from the development process of other countries during the transition period.The sixth chapter elaborates on the legal regulation of land finance in China,and puts forward relevant suggestions from four aspects: clarifying the relationship between the government and the real estate market,strengthening the legal regulation of the land use right transfer market,strengthening the legal regulation of the revenue and expenditure of the land transfer fee,and speeding up the process of "fee to tax" of the land transfer fee.This chapter aims to provide some ideas for building a sound legal system of land transfer and land taxation in China.