The Experience of Property Tax Pilots of Shanghai, Chongqing, and Enlightenment to Other Cities in China

Due to the tax exemption policy in China, the holding cost of real estate is low, which leads to the imbalance between housing supply and demand. Therefore, the old tax system does not adapt to real estate development anymore. Combined with the soaring housing price, the tight local budget, and the large income gap in China, the reform pilots of property tax in Shanghai, Chongqing came into being in this situation. With summarizing the current research status of the domestic and foreign property tax, this paper does contrastive analysis on the effect of property tax implemented in Shanghai, Chongqing based on the basic theory of property tax, and evaluates the obstacles to reform property tax system in China. Therefore, when implementing property tax reform, we should balance the relationships of the related stockholders in real estate market well, establish a unified tax system, make appropriate and favorable policy and popularize the advantages of property tax. These tips proposed in the paper will also contribute to implementing property tax in other cities of China.