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Real estate tax speed up! Tell you three "most important things"

Time: 2018-09-10         Source: Property market reference         Author: Liu Xiaobo

This weekend, the biggest news of the property market is: real estate tax legislation, with the latest and exact statement!

According to several media reports, on September 7, the legislative plan of the 13th National People's Congress Standing Committee was announced, and the real estate tax law was included in the first-class project of the 13th National People's Congress Standing Committee.

This sentence seems to be ordinary, including multiple meanings. The so-called "one-category project" is a proper term for the legislative planning of the National People's Congress. The meaning is:

There are three types of legislative planning:

One type of project is a draft law that is relatively mature in terms of conditions and is proposed for consideration during the term of office;

The second type of project is a draft law that needs to be reviewed and submitted for consideration when the conditions are ripe;

The three types of projects are legislative projects that are not fully equipped with legislative conditions and need to continue to study and demonstrate.

The National People's Congress has a term of office. The 13th National People's Congress is the first meeting held in March this year. This session will end in March 2023.

At present, there are 69 “one-category projects” included in the legislative plan of the current NPC, and 47 “second-class projects”. The real estate tax law is included in the current "first-class project", which means that the real estate tax legislation, if not unexpected, will be completed within five years.

When this news came out, it immediately caused widespread concern. But everyone's interpretation is completely different: one view is that real estate tax legislation is speeding up; another view is that there is still no more than five years, and the rhythm seems to slow down? At least one new cycle can be completed, what are you worried about?

My opinion is: Since the beginning of this year, real estate tax legislation has indeed shown signs of "acceleration."

For example, on March 4, at the first press conference of the 13th National People's Congress, a spokesperson said that the laws and regulations related to real estate tax were drafted by the National People's Congress Standing Committee Budget Working Committee and the Ministry of Finance, and are currently speeding up. Drafting and improving the draft law, the argumentation of important issues, and the internal solicitation of opinions, and strive to complete the preparatory work for the initial review of the Standing Committee. On the second day (March 5), the “Government Work Report” mentioned “sounding the local tax system and steadily promoting real estate tax legislation”.

As for the recent period, there have been rumors that "the end of 2018, the real estate tax law will be the first trial."

If the "first instance" is really before the end of the year, the legislation is indeed speeding up. But you should note that the National People's Congress still gives real estate tax legislation, leaving a huge amount of time flexibility. After 5 years of deliberation, it can be exactly 5 years, or 3 years or 4 years. It can be considered and passed, and discussions can be continued after consideration.

Therefore, on the issue of real estate tax, it is still "whatever happens."

I guess the big probability is this:

It may be considered to pass a national “real estate tax law” around 2021, but this tax law must be more general and programmatic. Because the real estate tax is the most concentrated tax in the local area, it is very likely that in the future, the prefecture-level city (or even the county-level city) will be the unit to implement its own implementation regulations.

In this case, the first is national legislation. Then the provincial people's congresses passed the implementation of the regulations, and the people's congresses at all levels of the city (or even county and county-level cities) can implement the rules.

The real estate tax has been fully implemented across the country. It may take another two or three years from the completion of the legislation. However, first-tier cities and strong second-tier cities will take the lead.

In fact, for real estate tax, everyone is most concerned about three major issues:

First, how to exempt.

Second, how much is the tax rate.

Third, will there be a "gradual, punitive" tax rate.

In fact, no one is worried about the real estate tax issue. This tax is a "direct tax", which means that the people need to turn in the initiative. This kind of tax collection is the most difficult and the most likely to produce a "painful feeling." There is a deed tax in the housing transaction, which is also a direct tax. The tax rate is as high as 1% to 3%, but everyone still pays. Why the levy is smooth, because you don’t pay the real estate license if you don’t pay it; the tax rate is high, but it is collected once.

The real estate tax is different and it needs to be paid annually. Therefore, the "painful feeling" will be stronger and not linked to the title certificate.

This kind of direct tax that needs to be paid annually needs to fully consider the ability of ordinary people and the impact on consumption after the collection. For example, some people take the US property tax as saying that the United States generally ranges between 0.8% and 2.4%, so China's tax rate is at least 1%.

In fact, this statement is completely "no brain". When the Chinese bought a house, they paid a one-time land use fee of 70 years. Our real estate tax has a "repeated nature" and it is impossible to play as the United States does. If you think about it, in the north, a 90-square-meter house will cost 10 million. The 1% tax rate is 100,000 yuan. You impose such a heavy tax, and how the ordinary family can bear it.

Even if the levy is imposed from the second house (the first set of tax exemptions), the tax is still very heavy and will lead to a big increase in rents. But even if it rises, it is still difficult to pass it on completely. In the end, families with multiple suites will sell houses.

Some people may say: This is good, does it not achieve the purpose of regulating the property market?

But the problem is, if the real estate levies a heavy tax, the family only keeps a house, and the house is exempted. Isn't the local finances in trouble?

After all, the real estate tax is to solve the “rice problem” of the local government, not to think of “rice bowl”.

Therefore, the future real estate tax rate must be 1 ‰ this level, not 1%. As for the counties and cities with serious population loss, they can only be exempted for a long time.

Each family must have an area that is exempt (the area is reasonable compared to the number of sets). For example, your account, work, and social security are all in Beijing. You have two sets of 100 square meters of housing. You are married and there are three people in the family. If the per capita exemption area is 60 square meters, then you need to pay the real estate tax only 20 square meters in the second house (according to the estimated price of 20 square meters). As for your vacation properties in Yantai, Shandong, Xishuangbanna, Yunnan, and Guilin, Guangxi, it is very likely that the local government will be exempted from real estate tax.

Will there be a real estate tax rate of “decrease, punitive”? I don't think it is possible. If there is, it will be cancelled soon, because this practice is "stupid" and will drag down economic development.

A recent news on the Hong Kong property market has caught the attention of many people. The Hong Kong government has granted real estate tax relief to the 10 owners who own the most houses. These 10 owners have more than 40,000 homes in Hong Kong. One of the largest owners, with a total of 15,600 properties, was reduced by more than HK$100 million in real estate taxes (see chart below).

These owners are generally real estate funds or leasing companies. According to many Chinese people, owners who own multiple homes should be taxed heavily. With more than 20 sets of housing, it should even be taxed, and it will be completely deprived in two or three years. In fact, this is the idea of ​​Li Zicheng and Zhang Xianzhong. The contract society does not solve the problem like this. Hong Kong believes that you can own a lot of houses and contribute to society as long as they are rented out.

Before in Hefei, the government also encouraged owners of rental houses to reward 12 yuan per square meter per year instead of punishing them by tax (see the picture below).

It can be seen that some people would like to see: For owners who own multiple suites, there may be no real estate tax on “adjusted, punitive”. Because there is competition between local governments, there is competition between cities and cities. A city dares to be “willful” in real estate tax, and can only slap its own jobs, let people and money flow away.

In this case, a vacant tax may be introduced.

I often have readers' advice: I have several houses. Do I need to sell the house before the real estate tax is introduced?

In fact, as long as your house is well-equipped and in a good location, the room type is not particularly large. After the “real estate tax rules” of your city are introduced, it is not too late to deal with these properties. In the end, you have a 90% chance of finding out that you don't have to worry about real estate taxes.

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