China Land Policy Program - Land Issues In China

Public Finance and Property Taxation

In the United States and many countries, property taxation plays an important role in the provision of public services such as schools, fire protection, police patrols, and roads. China, however, does not have property taxes. Institutional and legal frameworks -- including the recognition of property rights ?are, however, changing. As a result, pressure is building for China to develop a system of property taxation. In the process of developing a property tax system, there are questions that first need to be addressed:

• What is the tax base and what tax rate should be charged and to whom?
• How shall property taxes be administered and collected?
• How should property tax disputes be dealt with?
• Who should be responsible for the inventory of taxable properties, appraisals and assessments?
• What are the impacts of property taxation on economic development and the functioning of local governments?
• What are the impacts of property taxation on urban land uses and land allocation?
• What are the impacts of property taxation on intergovernmental relations as well as the relationship between government and the Chinese people?