Research On The Effect Of Real Estate Tax Reform On The Local Fiscal Revenue

In the past twenty years,land finance provided important support during the rapid development and great improvement of our country,s social economy.However,as the economic development turned to a new normal,more public services were needed for urban development.Local governments facing financial pressure,debt,and over-reliance on land finance gradually appear the drawbacks,which accompanied greater political,social and economic risks.Visible,it is very important to construct the policy that can guarantee the steady and steady growth of local financial revenue.Property tax itself has the advantages of stable tax base,adequate tax sources and easy administration.In most of the developed countries,the direct tax such as income tax and property tax are the main sources of local government revenue.After seven years of property tax "idling" operation,January 28,2011 in Chongqing and Shanghai took the lead in the pilot reform of property tax,part of the housing levy property tax,has drawn great attention of the community,then,property taxes What kind of relationship is there with local finance?Property tax reform can promote the steady growth of local financial revenue?Are there any regional differences in the local fiscal revenue effects of property tax reform?It is the main problem of this paper.This study first reviews the development history of China,s real estate tax policy,summarizes the characteristics of real estate taxation policies in different stages of development,and analyzes the performance and existing problems in the fiscal revenue through the comparison of the real estate tax reform program contents and reform effects.Second,based on fiscal and taxation reforms,macroeconomic policies,and modern economic theories,an in-depth analysis of the impact of real estate tax reforms on local fiscal revenues.On the one hand,the real estate tax reform has expanded the scope of taxation of the current real estate tax.It directly affects real estate tax revenue by changing the tax base of real estate-related taxes.On the other hand,the reform has increased the holding costs of real estate during the holding period.It has affected the balance of supply and demand in the real estate market,caused fluctuations in the real estate market,affected local government revenues through changes in non-tax revenues such as linked industry driving effects and land transfer income caused by fluctuations in the real estate market.Moreover,an empirical analysis of the effect of local fiscal revenue on real estate tax reforms was conducted.Chongqing Municipality,a pilot project of reforming the property tax,will be used as a natural experiment.Based on the district-level data from 2004 to 2015,a policy evaluation will be conducted on the possible local fiscal revenue effects resulting from the property tax reform.The results of the study are as follows:(1)The real estate tax reform has a significant positive impact on local fiscal revenue.Compared with the control group,the average treatment effect of the real estate tax reform is 0.169,which shows that the real estate tax reform in Chongqing generally promotes the increase in local fiscal revenue;(2)There are certain differences in the impact of real estate tax reforms on regions with different levels of economic development.Chongqing's real estate tax reform has the greatest benefit in areas with moderate levels of local fiscal revenue,and this effect is not significant in regions with lower income levels.It may even have a negative effect,so regional economic development can be used as a reference for the promotion of real estate tax reform;(3)Factors such as housing price,industrial structure,and social fixed asset investment and consumption have a significant positive effect on the increase in local fiscal revenue.Based on theoretical and empirical research,in the future real estate tax reform in our country to promote and spread5 this paper believes that if you want to really play the real estate tax effect,we must first clear the positioning of real estate tax,and to promote the fair as the primary objective,while coordination with other taxes,Further improve the property tax related measures,and according to the regional economic development,consider the differential tax policy.