What Is Property Tax Relief?
Property tax is a general term for a class of tax imposed on legal or natural persons who possess or have disposable property at a certain point in time. The so-called property refers to the economic resources, such as houses, land, materials, and securities, which are possessed and disposable by a legal or natural person at a certain point in time. As an ancient tax, property tax was once the most important source of state fiscal revenue during the slave society and feudal society. After entering the capitalist society, its main tax status gradually gave way to turnover taxes and income taxes. The decline of property taxes is determined by its own fixed limitations:
property tax
- Property tax is a general term for a class of tax imposed on legal or natural persons who possess or have disposable property at a certain point in time. The so-called property refers to the economic resources, such as houses, land, materials, and securities, which are possessed and disposable by a legal or natural person at a certain point in time. As an ancient tax, property tax was once the most important source of state fiscal revenue during the slave society and feudal society. After entering the capitalist society, its main tax status gradually gave way to turnover taxes and income taxes. The decline of property taxes is determined by its own fixed limitations:
- First, it is not flexible enough to meet the needs of social and economic development;
- Second, the taxable objects are limited;
- Third, it is difficult to accurately define the tax basis, tax collection and management is difficult, and tax costs are high. [1]
- Taxes are also payable on funds and property of idle and non-operating assets. Therefore, property taxation can stimulate and encourage capital to actively develop production and operation instead of sitting on interest, rent, and old assets. Moreover, asset taxation can capture tax sources that are not covered by income tax, that is, non-profit enterprises and individuals must pay property. Taxes (of course assets below a certain amount are tax-exempt in order to protect the lower income class and reduce the cost of taxation). This tax doctrine is divided into two perspectives. One is the tax standard for capital as advocated by American scholars, but the capital is limited to real estate. The other is the application advocated by French scholars. All tangible capital is taxed. France's value for property tax is prominently manifested in the French Revolution during the French Revolution, which strongly demanded and forced nobles and kings to pay taxes.
- The functions and advantages of property tax are:
- It is conducive to the survival of the fittest of the control of all society's property, so that the wealth of asset owners with poor operating capabilities is gradually transferred to those with strong operating capabilities. Because if there is no property tax, the funds required for social welfare are only borne by other taxes such as income tax. The income tax payer is a person with strong business ability and high profit, but pays heavy taxes instead. If property taxes are implemented, income taxes can be significantly reduced, as the funds needed for social welfare can be partly financed by poor capitalists. This process is logically equivalent to the transfer of assets from people with poor ability to those with strong ability.
- Property tax is also conducive to economic stability and avoiding economic crisis. Without property taxes, rich people with deposits are in no hurry to invest. In the years of economic prosperity and increased demand for commodities, investment has been swarming. As a result, there was an excess of production capacity and stock of goods in a few years. At this time, another rush to stop investing, leading to economic depression in a few years. This has led to economic instability, and a serious economic crisis. The property tax is levied continuously on the rich every year. If the rich do not invest in the development of industries and the economy as soon as possible, property will decrease year by year. Therefore, there is a phenomenon that every year the wealthy invest in a stable industry every month, which stabilizes the economy.
- The focus of property tax adjustment is on the rich, which is conducive to narrowing the gap between the rich and the poor.
- Property tax
- Property can be divided into:
- Characteristics of property tax
- There are:
- land,
Property tax
- Taking the houses in the city as the tax object, levying property rights on the property owner according to the house price and rent price
- property tax
- property tax
Property tax deed tax
- Deed tax A type of tax that is levied on property owners in the purchase, sale, pawning, gifting (including winning properties in prize savings) and exchanges of contracts. The deed tax is levied on the transfer of property rights, including the purchase and sale of real estate, misconducts, gifts, and exchange activities. Accordingly, the deed tax can be divided into three types: purchase deed tax, deed tax, and gift deed tax. The tax rates are 6% of the purchase price. 3% of the nominal price and 6% of the current price. The formula for deed tax is: taxable amount = house transfer price (purchase price, nominal price, current price) × applicable tax rate.
- After the founding of the People's Republic of China, in April 1950, the State Council announced the "Interim Regulations on Deed Taxes", which stipulated that all parties to the purchase, purchase, pawning, gift, or exchange of land and housing shall conclude a contract with the parties on the basis of the land and housing certificate, and the beneficiary shall pay the deed tax. Since then, due to the state's regulations that land is not allowed to be sold freely, the scope of deed tax collection has been greatly reduced, but deed tax must still be paid as long as acts such as house sales, pawns, gifts, and exchanges occur.
- The deed tax paid by the contract shall be included in the value of the fixed assets. The deed tax is a one-time tax and may not be reflected in the taxable account. Instead, it is directly debited to the fixed assets and credited to bank deposits when paid.
Property tax
- The estate tax is a tax on the estate left by the deceased. It is sometimes called "death tax" in foreign countries. The inheritance tax helps to strengthen the regulation of inheritance and gifted property to prevent excessive disparity between the rich and the poor. The collection of inheritance taxes in various countries and regions can be roughly divided into three categories:
- Property tax: estate tax
- Divided inheritance tax system. This is the inheritance of the heirs after the death of the heirs, and then taxation of the inheritance. The taxpayer is the heir to the estate, and the tax burden depends on the close relationship between the heir and the heir.
- Mixed inheritance tax system. It levies an inheritance tax on the inheritance of the heirs first, and distributes an inheritance tax on the amount of the inherited property of the heirs after the tax is distributed to the heirs.
- Levying inheritance tax can save capital, average social wealth, reduce social waste, promote labor income, increase state treasury income, and supplement income tax deficiencies. The inheritance tax first originated in ancient Egypt more than 4,000 years ago. For the purpose of raising military expenses, Egyptian Pharaoh Khufu levied an inheritance tax. The modern estate tax was levied in the Netherlands in 1598. Later, Britain, France, Germany, Japan, the United States and other countries successively levied inheritance taxes. The modern estate tax was created in the Netherlands in 1598. In the future, other Western countries, such as Britain, France, Italy, etc., successively launched their levies.
- At present, China does not levy this tax.
Property tax urban land use tax
- The state levies a tax on units and individuals with land use rights based on the amount of land they use. The land use tax is paid by the unit and individual who owns the land use right. If the taxpayer who owns the land use right is not located in the land, it will be paid by the custodian or the actual user. The actual user pays the tax; if the land use right is shared, the common parties pay taxes separately.
- The land use tax is classified by a fixed-rate tax rate, and it is levied on a quantitative basis according to different levels of tax stipulated in large cities, medium cities, formed towns, and industrial and mining areas. The land use tax is based on the actual land area occupied by the taxpayer, and the taxable amount is calculated in accordance with the prescribed unit tax. The calculation formula is: taxable amount = actual occupied area of taxable land × applicable unit tax.
- The land use tax paid by the enterprise shall be included in the management expenses. In order to reflect the calculation and payment of the land use tax, the enterprise may set up a detailed account of the land use tax payable under the tax payable account, debit the management expenses, and credit the tax payable-the land use tax payable; if paid in advance on a quarterly basis For monthly amortization, the quarterly prepaid land use tax is included in the to-be-expended account, and then amortized monthly.
Property tax land value added tax
- A tax levied on the value-added portion of paid-for transfer of state-owned land use rights, ground buildings and attachments (hereinafter referred to as real estate) for income. Units and individuals who transfer real estate for a fee and obtain income are taxpayers of land value added tax. The land value-added tax adopts a four-level progressive rate of progressive rates of 30%, 40%, 50%, and 60%, respectively. The land value-added tax is based on the value-added obtained during the transfer of real estate as the taxation object. The calculation formula is: taxable amount = value-added amount × applicable tax rate-deducted item amount × number deduction coefficient. Among them, the value-added amount of land = the total income from the transfer of real estate-the amount of the deducted items, and the amount of the deducted items includes the amount paid for the acquisition of land use rights, the cost of land development, the cost of new housing and supporting facilities, and the related real estate Tax and other required deductions. Strictly speaking, the land value-added tax is a profit tax, not a property tax. Enterprises should set up the details of the land value-added tax payable under the taxable account, which is a recurring operating expense of the enterprise and should be included in the business tax and Additional account. For non-main real estate businesses, because the land use right has been reflected in the intangible assets account, the land value tax payable should be recorded in other business expenditure accounts.
Property Tax Vehicle Tax
- According to the Provisional Regulations of the People's Republic of China on Vehicle and Vessel Tax (Order No. 482 of the State Council), from January 1, 2007, the vehicle and vessel tax is a property tax, and the previous vehicle and vessel use tax and license tax are behavioral taxes.