Study on the Policy Efficiency of Real Estate Tax Reform to Local Real Estate Market Regulation

After the reform of the tax system in 1994, land-transferring fees were placed under local management, and land use efficiency was greatly improved. With the high-speed operation of marketization, urbanization, and industrialization, land resources have generated tremendous value-added benefits. Therefore, the contribution of land-transferring fees to China’s economic development cannot be denied. However, as the land transfer phenomenon becomes more and more intense, the drawbacks such as the decrease of farmland and the emergence of real estate bubbles have become increasingly prominent. The structure of local fiscal revenue is irrational, and the pattern of reliance on land sales to generate revenue to fill local fiscal revenues is not sustainable. In the process of income adjustment and wealth distribution, the real estate tax plays a crucial role. In the process of advancing the real estate tax reform, the idea of including land-transferring fees in the real estate tax reform system has been proposed. Based on this, the paper draws lessons from relevant theories of taxation and real estate market, uses data envelopment analysis (DEA) to roughly evaluate policy efficiency, and predicts the economic effects that land-transferring fees may bring into the real estate tax reform system. Then explore the design ideas of real estate transaction costs into the real estate tax reform program.