Real Property Tax for Chinese Local Governments

Abstract

Here we deliberate on the rationales for the real property tax (RPT) as the administrative tool and fiscal institution that has the potential to solve multiple problems China now faces. We first define the RPT, then explain how the tax is a fiscal and budgetary institution and how it can reshape the relationship between the higher and local governments. Finally, we discuss how this tax can raise the efficiency of public service provision. With all these deliberated, we complete the circle of why China now needs a local property tax.