Shanghai Intends To Levy Property Tax

After the introduction of the rules of the property market in Beijing and Shenzhen, the Shanghai property market rules, which have not yet been settled, will be released in the near future.

Yesterday (May 12th), "daily economic news" reporter learned in the interview that the Shanghai property market regulation rules in the property tax collection method will require non qualified owners of real estate, according to the value of real estate appraisal annual payment of property tax.

However, in view of this way of Taxation, some property appraisers in the real estate industry have raised the possibility of doubt: how can the relevant departments carry out accurate assessment in the face of the huge stock houses in Shanghai? Can real estate tax be really implemented?

The answer may be that Shanghai needs 28 years to assess accurately the existing stock. In this way, it is more feasible to levy "analogous valuation" according to the assessment price.

Thousands of appraisers can finish in 28 years?

The Levy of property tax has become increasingly true after the "full moon". At the same time, the way of taxing the assessment price has aroused much controversy.

Shanghai Real Estate Economics Association vice president, land society consultant Yin Hua to the "daily economic news" reporter confirmed: the Shanghai municipal government has held relevant meetings on the rules and regulations of the housing market, property tax levy rules will be issued at the end of the month to solicit opinions from all sides. The specific tax basis is the "appraisal price" rather than the transaction price. The way of levy is like the existing way abroad. It may be multiplied by coefficient 0.7 on the basis of market price for different housing types, and will be levied at the rate of about 0.5%~1.2%.

The reporter learned from the website of Shanghai housing security and housing authority that there are 1351 registered real estate appraisers in Shanghai. According to the Shanghai Statistical Bureau, "the whole social housing construction area and completion area (1985~2008)" data, Shanghai as of 2008, the completion area has reached 457 million square meters. Xue Jianxiong, the Shanghai Real Estate Information Service Co., Ltd., said that as of 2009, the stock area of the Shanghai stock calculated by the company was 498 million square meters.

"The workload is exaggerated, in the form of precise estimation." A Shanghai appraiser, who declined to be named, told reporters that in general, the precise price assessment process for a real estate is to accept the evaluation commission and carry out market investigation, carry out on-the-spot exploration and write a summary report on the second day, and submit a comprehensive evaluation to the client on the third day. That is to say, it takes about 3 working days to evaluate the exact price of a real estate.

If the average area of the 100 square meters of each property is estimated roughly, it will take about 10 thousand days for all the 1351 registered valuers in Shanghai to complete the assessment of the completion of the real estate in 2008 as at 2008. That is to say, 28 years or so will be able to really complete all the price appraisal work, which does not involve the stock stock added after 2009.

In addition, according to the existing regulations, the valuation of a real estate needs to be estimated according to the market value of the property. The appraiser said that the general value of 1 million yuan of real estate, about 5000 yuan estimate cost. The property over 1 million yuan is charged according to the different cost standard. Therefore, it is doubtful whether the real estate tax should be taxed and assessed through the assessment price.

"Analogy valuation" is more feasible

For Shanghai property tax how to levy questions, Shanghai Tax Bureau responded to "daily economic news" reporter said, there is no detailed rules on property tax promulgated, if there is any change, the relevant information will be published on the Department website on the first time.

The Yellow Sea, a valuer, said that if property taxes were to be collected, it would be more likely to collect objects rather than target all the stock houses on the market. Yin Hua believes that the collection of property tax in Shanghai should have its own "high level". It is more feasible to levy new stock houses.

The industry speculated that the "valuation" of the assessment price is more feasible, that is, "fuzzy valuation" of different grades according to the categories of villas, newly built commercial houses and old commodity houses. Accurate price estimation for every property is not feasible on the one hand. On the other hand, it is difficult to decide who will bear the huge cost.

Can real estate tax really hit investors? Indo China doubts this.

Yin Hua explained that if the market price is 2 million yuan, the estimated price is about 1 million 400 thousand yuan. According to the current tax rate, the property tax will be paid about 7000 yuan a year, averaging about 600 yuan per month. This is not a big number for real speculators.