The Analysis And Policy Suggestion On Reforming Real Estate Tax

Property Tax is the oldest tax. In many countries, it has been the most important tax inhistory. Now, in most of developed countries and many developing countries, Property Tax isstill the main resource of local government income. It also play an important role in improvingeconomic development and social justice. Property Tax has been developed and been one of themost important tax in those countries.In our country, restricted by social economic policy, Property Tax has not been developedefficiently, it also made taxation system inefficient. We have imposed tax upon real estate afteropening out to the outside world, but it can not draw a large income and make good regulation.So it is necessary to improve Property Tax and make it more important in our taxation system.With the rapid development of real estate, the investment is heavily. Our government hasmade regulation recently, the Third Plenary Session of the 16th Party Central Committee held onOctober 2003, announces: Reform taxes and fees in cities and towns' construction, conditionlevy and unify the normal Property Tax on real estate when possessing.In my article, I make analysis on Property Tax of our country, use other countries' taxes onreal estate for reference, then draw then conclusion: we should established a new tax on realestate to make Property Tax efficient, simplify taxes that already existed, even abolish some ofthem. I also try to make policy advice on tax framework design.