Study On The Present Status And Reformation Of The Real Estate Tax System Based On Local Public Financial Framework

During the initial fiscal decentralization reforms in 1990's, substantial progress has been made in rationalizing the expenditure and revenue assignments of the local finance. Although much revenues have been initially provided for local goverments, local own source revenues remain too low to support and sustain their newly assigned expenditure responsibilities.To promote greater local autonomy, accountability and efficiency, the government is now reviewing the need to strengthen local own source revenues. The primary option under this serious consideration is how to restructure the real estate tax to better support the fiscal decentralization reform. The article made a systemic research on present status and reformation of the real estate tax system based on local public financial framework in China, and the main contents and conclusions go as follows:( 1 ) Started by expatiating the general theory of public finance and fiscal decentralization, The article introduces the constant connection between the real estate tax and local finance. As a excellent local level tax, the real estate tax with proper administration can offer local finance an important potential revenue source for discretionary fund .So the reform of the real estate tax system is generally regarded as an important part and promotive power of decentrization reform.(2) The second part of the article focuses on the studies of the fiscal structure of local goverment and the real estate tax system in china. According to these studies, the major challenge that local governance has confronted is explore sufficient revenue instru -ments to meet its fiscal objectives. The key to meeting this challege is the reform of real estate tax system. Based on the theoretical and empirical analysis , real estate tax is the perfect own-source revenne potential for local finance. So a collection-led reform of real estate tax system is the the primary option to better support decentralization reform in china(3 ) In the last part, the article analyse the real estate tax systems and their roles in...