8 elm street toronto.How do other countries and regions collect real estate tax? From “steady progress” to “steady progress”, the reform of real estate tax is accelerating.Please Visit: 8 elm street toronto to Get Your VVIP Registration Today!
The real estate tax system includes basic elements such as tax object, taxpayer, tax scope, tax basis, tax rate, tax preference and so on. Due to the different level of economic development and the different development of the real estate industry, the real estate tax system of each economy has some differences in the tax system and the design of tax elements. But on the whole, there are some common tax arrangements in the real estate tax of each economy.
According to the purpose of taxation, real estate tax can be divided into European and American model and East Asian model. The European and American model is mainstream, and the real estate tax is used to raise local government revenue. The tax system is set with a “broad tax base, low tax rate and fixed revenue”. The tax rate is generally set at a proportional tax rate and is not punitive, such as the United States, Canada, the United Kingdom and so on. In a few economies, in addition to using the real estate tax to raise local revenue, it is also used to crack down on real estate speculation and regulate house prices. Typical cases are East Asian economies such as Japan, South Korea and Singapore. The government hopes to use the real estate tax to guide the allocation of market resources, regulate the real estate market, and impose a higher punitive tax rate on land hoarding and real estate speculation.
The real estate tax in the United States originated in the colonial period and was collected to provide stable revenue for local governments and provide financial support for local public services and infrastructure. 96% of the revenue of the American school district government, 45% of the revenue of the county government and 40% of the revenue of the municipal government all come from the real estate tax. Real estate tax accounts for more than 70% of local government tax revenue, accounting for 1×4 of total revenue, second only to government transfer income.
Britain originated from the stove tax in the 17th century, which was first used to provide relief to the poor. Municipal tax is the main tax category of local government. In fiscal year 2016, English municipal tax collected a total of 26.1 billion pounds, accounting for 43% of local government revenue and 16% of local government total revenue.
Canadian real estate tax originated in the colonial period, the main purpose of collection is to provide services to citizens. The amount of levy has maintained steady growth, with a year-on-year growth rate of about 3% in the past five years, which is in line with the inflation rate. On the other hand, the contribution of real estate tax to local overall tax revenue and local total fiscal revenue has been stable at 85% and 50%, providing a stable and secure source of income for local governments.
Japan, Singapore and other East Asian economies all have the contradiction between people and land with more people and less land. They have experienced the rapid development of modern economy, urbanization and real estate market, and have used real estate taxes to crack down on investment and control housing prices.
The fixed assets tax in Japan originated from the land tax in the Meiji period and was created in 1950 according to the Sharp advice to enrich local finance. Urban planning tax was levied in 1956 to supplement local finance and be used in urban planning. In 1973, a special land tenure tax was introduced to control land speculation and promote land use, and the retention of a large area of land was taxed annually at 1.4% of the acquisition price. The purpose of levying land premium tax in 1991, raising the tax rate of fixed assets and strengthening land evaluation and retention tax collection and management is to combat property speculation and restrain land prices.
Singapore real estate tax was introduced in 1961 to support municipal construction. In January 2011, in order to curb housing speculation and luxury housing demand, control housing prices began to reform the housing property tax, implement progressive tax rates, increase the exemption point, tax differential, vacant housing tax rate, heavy tax on non-self-occupied housing and other measures.