The Practical Choice for Real Property Tax Reform

Abstract

Defining the functions of real property tax ("RPT"), levying RPT fairly, and legislating RPT democratically are the three core issues of the current RPT reform, which are addressed in this paper. Firstly, even when granted the capacity, RPT cannot solely fulfil the function of controlling the real property market. With regard to the second issue, abolishing the tax exemption for personal noncommercial housing coincides with the principle of tax equity. Tax equity is enhanced by considering the size of residential area in addition to current value assessment when calculating tax payable. Finally, pilot programs of real property reform within the present tax legislation do not violate the principle of legality. The desire to realize the "ideal type" of such principle in theory cannot outweigh the necessity of those pilots.

Keywords: Real Property Tax; Tax Control; Tax Fairness; Legislative Taxation