Simulation of China's Real Estate Tax Reform Effects

This paper simulated China's real estate tax reform effects on housing price and local public finance. The results show different reform plans induce to different effects on housing price and local public finance. First, real estate tax reform would lead to new and stock housing price decrease. Real estate tax reform's effect on stock real estate price is bigger than new real estate price. Second, property tax reform may not lead to a decrease in local public financial revenue. The higher percentage of land transfer fee is substituted by property tax, the greater local public financial gap would be.