Effects Of Property Taxation Policies On Residential Housing Market

Nowadays, Chinese residential housing market still has many problems, such as the imbalance of supply and demand, and the escalating housing price. Under the background that central government is working at improving macro control, the measure for the real estate market is gradually experiencing changes. Property taxation can play a special role in facilitating market equilibrium, realizing reasonable resource allocation and distributing social wealth. After the actions in land supply and mortgage loan, it becomes a tendency to take use of property taxation to strengthen macro control over real estate market. Therefore, it is necessary to make systemic analysis of the effects of property taxation in order to providing useful policy suggestions for the further macro control.On the basis of property taxation control principle, the basic mechanism of property taxation control is divided into five steps, viz. issuing taxation policies, changing income level, altering decision-making behaviors, improving market situation and realizing the final public targets. Along this chain, the property taxation doesn't not control housing price directly, but lead supply and demand behaviors firstly. The housing price is still determined by the situation of supply and demand. Besides, the researcher illustrates the main property taxation items in international experiences and analyzed their corresponding functions.Then, combining China's practice in property taxation field, the effects of taxation on market is studied on two different levels: the total level and the structure level. Firstly, using the data of thirty-three provinces, the effects of three main taxation items (operational tax, land value added tax and enterprises' income tax) on the total housing exchange quantity were studied. Just as the regression results founded that the Chinese land value added tax is restricting the exchanging activities to some extent.The second level mainly points to the supply structure and the demand structure. Through discovering the gap between the legal taxation system and the real taxation situation, it is founded that the effect on demand structure is weakened, especially on limiting the speculative and investment house-purchase because of over-wide preferential measures, handicaps in real operation and incomplete collection. Besides, although with the discriminative contract tax policy, the effect in controlling supply structure is limited because of the absence of authoritative standard on judging house grades.Finally, the reasons that led to the control limits were summarized, and the author came up with policy suggestions aiming at optimizing Chinese property taxation system.