Towards a Valuation and Taxation Information Model for Chinese Rural Collective Construction Land

Abstract

To promote rural revitalisation, China’s central government revised the land administration law to allow rural collective construction land (RCL) to be traded in the market and attract private and financial capitals into rural investment and development. However, the land value appreciation income of the market access is closely related to geographical location. Hence, the value appreciation of RCL is enormous in villages around cities and towns. By contrast, the land value appreciation of RCL is low in villages away from cities and towns. This marked difference will lead to a significant impact on the rural social structure. To avoid the excessive widening of the income gap in rural areas, China’s central government attempted to conduct land value capture by revising and implementing land tax laws and reasonably distributing the value appreciation income of market access amongst the state, collectives and individuals. In response to the requirements of land reform, this study firstly identifies the legal constraints on the taxation of RCL in China through the structured retrieval and organisation of legal documents on land taxation. Thereafter, the technical constraints are analysed through the structural retrieval and organisation of the technical specifications of China’s land valuation. Lastly, this study proposes a land administration domain model (LADM) valuation and taxation information model on the basis of the aforementioned constraints. The major contents of the proposed model encompass improving the information management of taxpayer identity registration, supplementing land valuation methods and strengthening valuation information of the large-scale influencing factors. The proposed model is the technical basis to prompt the interconnection between the real estate registration and real estate taxation systems, which will be conducive to the efficient collaboration of the two systems.