Modern state and prospects of development of property tax in China

This article examines the potential negative consequences of rapid housing price growth on the economy, with a focus on analyzing issues such as excessive resource concentration, consumption constraints, settlement difficulties, and increased financial risks. The article also pays attention to the Chinese land finance system, particularly the impact of income from the transfer of land use rights on local budgets. The paper points out that existing housing price regulation policies may find it challenging to achieve long-term effects. In this context, the introduction of a property tax is proposed as a potential macroeconomic regulatory tool, justifying its stabilizing impact using global experience and analysis. The conclusion discusses methods for implementing property tax in China, along with possible consequences, emphasizing the need for reasonable rates and differentiated tax collection.