Land Financial Dependence, Property Tax Substitution and Mode Choice
LIU Hui-hong1, FAN Ding-xiang2
1.School of Economics and Trade, Hunan University of Industry, Zhuzhou 412007, China; 2.Business School, Hunan University of Industry, Zhuzhou 412007, China
Abstract：
On the basis of the provincial level of the real estate market data and financial data, by introducing the fixed effect model and making regression analysis of the data, the paper calculates quantitatively how the real estate market affects land finance. With the empirical results, the paper conducts numerical simulation and comparative analysis on the modes of tax levy. Research shows that the current real estate tax, land value-added tax, urban land use tax, farmland occupation tax should be incorporated into the property tax in the future in order to maintain the stability of the local fiscal. At the same time, the policy that the first set of residential real estate can exempt from taxation can not only reduce the resistance of the reform, but also help to maintain the stability of financial revenue. This study provides a solution for future property tax reform model, and also provides a credible point of view that the property tax can become the main local tax.
2016 
