An Empirical Analysis Of The Effect Of Property Tax Reform And Property Tax Functional Orientation

Since our property tax levy in the1950s, during which experienced a number ofadjustments and reforms. Overall, property taxes in improving China’s financial system, fiscalrevenue for the local organization has played a role. But with the development of thedeepening economic reform, property tax system is gradually revealed many problems.Therefore, a comprehensive property tax reform has become one of the important tasks themoment. From theory and international experience, the real estate tax as a local tax taxes,with the organization of local fiscal revenue, lower real estate prices and the impact of therole of the real estate market. However, since the Shanghai and Chongqing on property taxreform, the two housing prices rise, not fall to this reality also shows the effect of property taxreform is not ideal. Therefore, function only after the reform with research prices, and localrevenues, and the empirical relationship between the real estate market real estate tax, to bemore accurate understanding of property tax reform, reform of the smooth progress of itstheoretical basis.Based on the analysis of the historical evolution of the existing property tax system andthe tax problems of real estate, as well as property tax reform in recent years, our backgroundand review process, drawing on the research results of others, proposed property tax reformmodel. Then through the establishment of the VAR model, panel data analysis and static basicsupply model, prices, income and local property tax impact of the financial and real estatemarket after the reform of doing empirical analysis. Western countries and learn from thetypical property tax system, combined with China’s reality, in order to supply and demandtheory, the theory of public goods and tax non-neutral theory as the theoretical guidance, theshort and long term property tax reform selection function positioning-in the short term tocurb housing prices, stabilize the real estate market as the goal, the long term as a local bodytax revenue to the organization as the target. With a view to the smooth progress of China’sreal estate tax reform to provide a theoretical basis.