Property tax analysis

Property tax has no effect on real estate transactions. Property tax is a kind of property tax, which taxes the real estate already owned. The existing real estate transaction tax is turnover tax, which only taxes the real estate transaction link. There is no direct relationship between the two.

Most major economies in the world levy real estate taxes on houses. The collection of real estate tax mainly has three positive effects:

First, promote the increase of the total supply of the real estate market and ease the contradiction between housing supply and demand. Levying real estate tax will increase the tax on the ownership and use right of the house, resulting in a decrease in the tax on real estate business tax, deed tax, value-added tax and other circulation links, forcing the owner of the house to put the redundant house on the market. The rapid increase of the total market supply will greatly alleviate the current imbalance between supply and demand in the market, and the residential property of houses will become more prominent.

The second is to promote the development of the rental market. The increase in real estate tax will push up the cost of keeping property. In this case, the property owner will inevitably choose to push the surplus property to the housing rental market, so that the lessee can share the cost of maintaining the property, resulting in an increase in rental housing and a decrease in rental price.

The third is to help local governments achieve fiscal balance. In many countries in the world today, property tax or property tax is an important source of income for local finance. However, since the tax-sharing reform in China from 65438 to 0994, most local taxes are scattered and difficult to collect, and it is difficult to guarantee local fiscal revenue. Local governments rely on the income from land transfer fees to form a "land finance" with China characteristics, but this "land finance" characterized by "land sales" is unsustainable.

It is worth noting that at present, some third-and fourth-tier cities in China have large real estate inventories and great consumption pressure. If the real estate tax is pushed too fast, it may have a great impact on the real estate market in these places.