Analysis On The System Reformation Of Chinese Real Property Tax

China’s real estate tax system pays a lot attention on the exchange link, but leavesthe keep link out. The reason of this is that China is at the primary stage of socialism,productivity is not developed and people just maintain lives. However, as China growsstronger and stronger and the real estate market flourishes, the material basis for a largescale real property taxes is ready. What’s more, the design of real property tax system isfar behind the development of the real estate market is what leads to high real estateprice and a lot of speculation in real estate market. So, the reformation of real propertytax system must be taken action.Now, China’s real property taxes are only tax on commercial real estate, and theitems of tax include house duty and city and town land use tax. But the goal of the realproperty taxes is fuzzy and brings about problems such as the effects of different taxescancel out. Secondly, the design of the real property tax system is old-fashioned withdefects on tax categories, taxation basis, tax rate, tax preference and tax collection. Itnot only has conflict with the global principle of “broad taxation basis, low tax rate,simple tax category”, but also doesn’t adapt to China’s conditions, which lead to lowfinancial ability, weak market regulation and valid on wealth redistribution. Thirdly,some laws and regulations related work inharmoniously with real property taxes whichreduces the effect and efficiency of the real property taxes.Basing on the analysis of the defects of the real property taxes, the paper studiesthe designs of the real property tax system of typical developed countries. America andBritish have a long history about the real property taxes and have thorough tax system.Japan and South Korea also confront with the presser of big population and short realestate resource, so China can learn a lot from what they have done. Hong Kong and Taiwan are the only provinces of China which carry out the real property taxes on largescale and have some experience.The last phase of the paper focuses on the feasible solution of China’s real propertytax system reformation. It points out that supplying the finance of local government,regulating real estate market and adjusting the wealth distribution should be the goals ofthe real property tax system. The design of the real property tax system should makeeffort on those aspects: simplifying the category of the tax system, taking the result ofreal estate assessment as the tax basis, adopting progressive tax rate in excess of specificamount, adjusting the tax preference, strengthening the management and collection ofthe real property tax. In addition, completing the regulations and systems related arealso needed.