What Are the Different Types of Rental Property Tax Deductions?

Property tax, also known as property tax, is mainly for real estate such as land and houses. It requires its tenants or owners to pay a certain amount of tax each year, and the tax value payable will increase as the market value of the real estate increases. For example, after the opening of highways and subways, the prices of real estate along the line will increase, and accordingly, property taxes will also increase.

property tax

Property tax

Although it has been five or six years since the property tax was proposed to the pilots of idling in various places to be put on the agenda again by the State Council, although the debate on how to levy the property tax has never stopped. However, so far, most people in the industry believe that there are many difficulties in levying property taxes, and it is difficult to achieve property taxes in the short term. To sum up, the difficulties faced in levying property taxes are mainly the following:

Problems of Property and Land Ownership and Land System Reform

Levying property taxes first faces the issue of ownership of properties and the land on which they depend. Because property tax is a kind of property tax from the point of view of property, the purpose is to establish and maintain the value of the property held by the taxpayer. Because of this, taxpayers are willing to pay the tax. The premise is the preservation and appreciation of the property. The basis of collection is based on the property and land.

Although it is difficult to levy a property tax, no matter from the actual cases abroad or from the development trend of China's fiscal and taxation system, levying a property tax is an inevitable development trend. In the long run, it is in line with national interests and also beneficial to the real estate industry. Development is conducive to the maintenance of the actual interests of buyers. The role of property tax is

High-income people: less desire to buy a house

Suppressing their desire to buy a house has increased the cost and risk of buying a house for money laundering, thereby significantly reducing house prices. Because most of the high- and mid-range (price) real estate are purchased by them, most of their families have bought several or dozens of homes in major and medium cities. If a property tax is levied, their family will pay a few Tens or even hundreds of thousands of property taxes, and will also expose their funds to buy a house

After paying the transfer fee, you should not pay property tax again

Niu Fengrui, a researcher at the Center for Urban Development and the Environment of the Chinese Academy of Social Sciences, pointed out that foreign property taxes are based on property holding taxes based on private ownership of property rights. In China, land belongs to the state and only the right to use is transferred. Niu Fengrui pointed out that when Chinese buyers bought a house, they actually paid the government a one-off land transfer fee for 70 years, which was a one-time delivery and paid. This money has been included in the finance for public construction. In a sense, this is actually related to the collection of property taxes. Therefore, if a property tax is levied, the cohesion of the policy must be considered. For homeowners and owners who have paid a 70-year land transfer fee, do they need to pay it after 70 years, or how to verify the property tax they should pay should also be clear. The place. There are still many problems in this area that require in-depth research.

Separate property tax will cause house prices to skyrocket

China's property tax cannot be levied like the United States. As long as it is owned, it needs to pay "real estate tax" or "real estate tax". China's first set of exemptions, starting from the second set, the more the number of sets, the more the collection, long-term in order to curb the excessive rise in housing prices. However, the question also ensues. When buying a set without paying taxes, will investors use the name of those who do not have a house to buy a house to form a new wave of buying? In addition, even if a property tax is levied, the final outcome of the property tax will be passed on to the tenants, and the increase in rents will also increase the price of new homes, forming a "vicious circle interval", which will also cause house prices to skyrocket.

Limited property rights cannot levy property tax

Some articles point out: The international practice is that property taxes can only be levied on certain assets in which citizens have property rights. Property tax is a property tax. And the core part of Chinese people's real estatelandis state-owned. The residential land of Chinese people is sold for a period of 70 years. As long as you are still Chinese, you cannot "own" any real estate because you only have 70 years of use rights. Some economists agree with this view, and some scholars have pointed out: As long as Chinese citizens do not have real land, houses and other real estate, the collection of property tax is to build a house on the beach and lose its foundation-because the owner of the property It's the country. If you want to levy taxes, you should ask the country.

Proposed Property Tax

The basic framework of property tax reform is to combine the current real estate tax, urban real estate tax, land value-added tax, and land transfer fees, etc., and convert them into property taxes that are collected uniformly during the property ownership phase. At present, China does not have any specific detailed implementation rules and measures for imposing a real estate industry tax.

"Property tax" has been mentioned frequently for some time. As a matter of fact, the reform of the taxation system for property tax has been gradually clear as early as 2003. The Third Plenary Session of the 16th Central Committee clearly stated that the implementation of the reform of urban tax and fee construction shall be levied on property property under a unified standard when conditions are met, and the tax shall be cancelled accordingly. "One stone has stirred up thousands of waves, and property tax has become the focus of everyone's attention and discussion. Every new news about property tax will also cause irritation among all parties in the market.

At the 2005 China Finance and Tax Forum, Minister of Finance Jin Renqing proposed that the "Eleventh Five-Year Plan" will vigorously promote tax reform and improve ^{[2] the} tax system, one of which is to gradually introduce consumption tax and property tax. In this regard, Shi Yaobin, the director of the Taxation Department of the Ministry of Finance, explained that in order to build a harmonious society, taxation policies should adjust income distribution and maintain social fairness.

The important role of tax policy in maintaining social equity is to participate in the distribution of individuals and property. He said that the imposition of personal income tax, vehicle and vessel tax, and the promotion of property tax reform in the future will directly or indirectly play a role in maintaining fairness.