Is There a Real Estate Tax Deduction?

Property tax is a property tax that is levied on property owners based on the taxable value of the house and the taxable value of the house or rental income.

Property tax is based on housing

Property tax is an ancient tax widely levied by governments at home and abroad.

1.Real estate tax belongs to property tax

From

In western countries, the collection of real estate taxes has never encountered a general anti-response response, because most of the tax revenue of real estate taxes is used to improve the supply of local public goods. In some countries, expenditures on public facilities such as schools, public libraries under the jurisdiction of local governments, as well as police, fire department and neighborhood maintenance are directly supported by property tax revenue.

The levy of real estate tax in China should become the general trend, but as far as the level of indirect tax is still high, the establishment and use of local main taxes still need to be regulated. It is difficult to reduce real estate tax by relying only on real estate tax. Public tax pain has increased.

Combining foreign experience and starting from the actual situation in China, the author suggests that the following points should be paid attention to in the collection of Chinese property tax:

First, the area per capita is

"There is no timetable for the comprehensive levy of real estate tax." Zhu Guangyao, member of the CPPCC National Committee and deputy minister of the Ministry of Finance, said today that the pilot experience in Shanghai and Chongqing is currently being summarized or the scale of the pilot will be expanded.

Which cities will be expanded? "You have to ask the mayors of those cities first," said Zhu Guangyao.

Zhu Guangyao said that the resistance of the reform lies in the various interest groups. It is necessary to balance and coordinate the interests of all parties, but the overall goal is to develop the Chinese economy and maximize the dividends of reform through democratic negotiation.

Zhu Guangyao told reporters that the establishment of local taxes and taxes will be very fierce. The establishment of the tax-sharing system in 1994 was what the then Vice Premier of the State Council ran out and talked about with the economic team from province to province.

On February 20, 2013, the executive meeting of the State Council identified five policy measures to strengthen the regulation and control of the real estate market. These five control policies and measures are referred to as the "National Five." The market generally believes that the introduction of the "National Five" has completely dispelled the illusion of some regions and developers waiting for policy relaxation, and released a signal that the policy will continue to tighten.

Zhu Guangyao affirmed that the central government will continue to be determined to control house prices. The tax measures in the new regulations are to control the resale of houses in the market. The goal is not to point to the transaction of the first house. The specific effect needs to be implemented in practice. test. ^[10]

How many suites are there in a person's name? How many suites are there in the country and how many are vacant? These questions may need to be answered in the unified registration system for real estate implemented before the end of June 2014.

As part of the State Council's institutional reform and transformation function work program issued on March 28, 2013, the unified registration of real estate was entrusted with multiple expectations such as the implementation of the property law, anti-corruption, and crackdown on real estate speculation. "Mastering everyone's real estate situation can really curb investment demand. This is an opportunity for real estate regulation to shift to a long-term mechanism." A person working in the housing information network at the Ministry of Housing and Construction said.

According to the analysis of people close to the Ministry of Housing and Urban-Rural Development, the unified registration system of real estate has promoted the nationwide housing information network. It is expected that the property tax will be released around 2014.

Housing Information Network Helps Determine Tax Base

On March 28, 2013, the General Office of the State Council issued a notice on the division of tasks in implementing the State Council Institutional Reform and Functional Transformation Plan, requiring that a unified real estate registration system be introduced and implemented by the end of June 2014. The Ministry of Land, Resources, Housing and Urban-Rural Development Responsible in conjunction with the Legal Affairs Office, the State Administration of Taxation and other relevant departments.

High school student

Gao Yuansheng, director of research at Hangzhou Branch of China Index Research Institute, believes that after the property tax is introduced, the market will not fluctuate greatly:

Gao Yuansheng: After the policy is introduced, the market will have a buffer period. The first impact will be on transaction volume and supply. After the decline, it may have an impact on prices. Real estate taxes can indeed play a role in curbing the rapid rise in house prices. But it won't drop immediately after coming out.

Director of Real Estate Research

Zhang Dawei, director of Beijing Zhongyuan Real Estate Market Research Department, explained the two current models of property tax:

Zhang Dawei: There are two models of real estate tax collection: the Shanghai model and the Chongqing model. Chongqing takes into account the stock in your hands, which means that the real estate you have in your hands will calculate your property tax when the policy is issued. No matter how many sets you have in Shanghai, as long as you do nt buy a house, your property tax will not be calculated. I think the Chongqing model is the development direction of the Shanghai model, and the two models are progressive. ^[5]

In July 2014, the National People's Congress was drafting a draft real estate tax legislation, considering merging the existing real estate tax and urban land use tax, and listing real estate tax as a local tax. China may start a nationwide property tax as early as 2015. Earlier, property taxes have been piloted in Chongqing and Shanghai. The National People's Congress is currently drafting a draft legislation on real estate tax, which is expected to be completed by the end of 2014 and implemented in 2015. Unlike the Chongqing and Shanghai pilot-only taxation on real estate, nationwide real estate taxes will be levied on real estate and land. The method of taxation is still under discussion and may be adjusted. The rate of property tax has not been determined, and it is not clear whether the scope of the property tax is for new or existing properties. ^[11]

Jia Kang believes that whether real estate tax is levied by area or by number of sets is controversial. Both schemes have advantages and disadvantages. The plan of the Academy of Social Sciences is to limit the average per capita to 40 square meters. This is not a problem at the operational level, but it will encounter conditions that are difficult for ordinary people to accept. For example, a family of three living in a 120-square-meter house did not have to pay taxes. As a result, an unfortunate accident occurred, the child died in a car accident, and the parents were distressed. The tax official arrived and said that it is time for you to pay real estate tax if the situation of your family changes. Although the legal provisions can be designed tightly and there are no technical obstacles to levy, the government will be embarrassed if the above situation occurs. ^[14]

Another option is that the first home is not taxed, which can avoid the above situation, but it will stimulate the divorce wave and may make the first home buyer desperately buy a large apartment. Some people also say that some people's first suite is 40 square meters, and some are 400 square meters. They should be treated differently, so there is still controversy. However, in any case, you must not levy a square meter tax on one square meter as in the United States. This method is the simplest, but it is not acceptable in China. ^[14]