The analysis of property tax implementation in China and some principles

The property tax is considered to be imposed in China. The influence brought about by it on the real estate market is uncertain through the analysis on demand and supply curves before and after its implementation. There are some problems to handle while designing our property tax system, including defining the functions of it and its tax burden, establishing a harmonious relationship with other tax types, clarifying the objects taxable by property tax and enlarging tax scale. At the same time, it is necessary to keep in mind some important principles based upon the western world who implement the property tax for a long time. Property tax is recognized as a supporting and regular tax source for local government instead of central government. The elasticity of property tax should be realized. The tax base needs to be broadened, tax system to be simplified and tax burden to be controlled at a reasonable level.