The Local Government Land Finance Origin, Issue And Countermeasure Research With The Perspective Of Tax Distribution System

The tax distribution system reform in 1994 resulted in a major change in the financial tax system in our country, who readjusts the relationship between the central government and local government revenue and expenditures. Thus, it came into being the strong central financial resources as well as the weak local financial ones, whose influence has continued till now. On the other hand, since the late 1990 s, the land finance, as emerging product, has become an indispensable part of the local government revenue, and also being with a growing proportion. Through the government operating the land resources, its own originally limited sources of revenue have got rise to extension. What’s worse, the land finance has been increasingly excessive expansion in recent years.In order to getting to know the truth of financial situation of local government, and to exploring tax-distribution impact on land finance, the author picked up a typical city in central China for the survey and visited the Finance Bureau, City construction investment management co., LTD. (the land reserve and supply center). Taking advantage of interview and literature search, it successfully collected the related data, which formed the basis of this article.In the later period, this article is finished via managing and analyzing research results. To begin with, this article briefly stated the current situation of city land finance, evaluated the local land finance scale from the aspects of land, land finance and tax. Then, from the point of tax distribution system, it explores the causes of the city land finance, and demonstrates the inevitability of the land finance of local government coming up. On the basis of the comprehensive cognition in the city budgetary revenues, public expenditures and land fiscal situation, this article puts forward three major problems further that the local government is now faced with. One is the local government financial dependence on land finance. Next two are being lack of not only land tax structure adjustment but also local finance risk control. In addition to that, it provides the related countermeasure and conducts further analysis, making use of the survey data. Finally, in order to solve above problems, this article puts forward the corresponding three countermeasures. Firstly, improve tax distribution system through tax revenue sharing, the clarification of duties and transfer payment. Secondly, promote the pilot projects of Housing Property Tax, and establish reasonable scope and tax rates. Thirdly, utilize "opening the front door," "block the back door" policy, build up a standardized transparent investment and financing mechanism. In the process of countermeasures and system design, this article pays much attention to both the practicability according to the real city situation and operation feasibility. In this way, hopefully, can strive for improving local government financial situation and make it more steady and healthy.