Research On Path Selection And System Design Of Property Tax Reform In China

The property tax is an important part of property tax system, and important source of revenue in local government, also an important lever of national income distribution pattern and regulation of the real estate market, which plays a decisive role position in the whole tax system structure. Study on the property tax levy will be conducive to improving the tax system, optimizing the tax structure, regulating income distribution, controlling the real estate market, and promoting social justiceThe current real estate tax system in China, is made up of the policy, laws and regulations which promulgated in different historical periods by PRC, it had played an active role on increasing local tax revenues, regulating income distribution and controlling social economic operation. With the gradual progress of China’s reform and opening up and deepening development of the market economy, the current real estate tax can not meet the need of the situation more and more obviously. Pointed out by the Third Plenary Session of the sixteen Central Committee of CPC that "on implementing the urban construction tax reform, when conditions are ripe for the introduction of a standardized real estate property tax, the relevant taxes and fees should be abolished correspondingly." The eleventh five-year plan regarded "reforming of real estate tax system, and steadily pushing forward the property tax and the abolition of the fees" as an important content of the fiscal and taxation system reform, put forward to establish the property tax system target which can adapt to the needs of the market economy. The twelfth five-year plan proposed "research promoting the real estate tax reform","Government work report" on the eleven session of the National People’s Congress of the third session put forward promote the stable and healthy development of the real estate market. These actually indicated the the final trend of Chinese real estate tax will reform. But reform involves wide range and great social risk, so to solve this thorny problem, it needs to-level design and system construction from many aspects. At the beginning of2011,in Chongqing and Shanghai these two cities, take the lead in promoting real estate tax reform as a major attempt. Since starting time of the pilot reform is not long, whether it can show a positive effect or not remains to be inspected. This paper starts from the theoretical framework of the property tax, giving a comprehensive description of the current situation of real estate tax and the pilot areas. Also it rounds the system, interests and technical resistance which existing in reform, learning from the typical nations’real estate tax system design, pointing out the path selection and system design of our country’s property tax reform in the future.