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Hangzhou among more cities to try property tax
Aggregated Source: Shanghai Daily: Business

THE central government is likely to extend the property tax trial to more cities in the second half of this year and levy taxes only on homes bought after the trial takes place, the China Securities Journal reported yesterday.

Levying taxes on homes bought after the trial should help ensure "smooth introduction" of the property tax although some cities have their own housing control schemes, the newspaper said.

Following the trial in Shanghai and Chongqing since January 2011, Hangzhou, capital of Zhejiang Province is expected to try the property tax and copy the practice of Shanghai by taxing only homes bought after the trial, imposing a 0.4 percent tax on ordinary homes and a 0.8 percent tax on high-end homes. Families with per capita space under 60 square meters will be exempted from paying the tax.

Shanghai currently levies a 0.4 percent and 0.6 percent property tax on ordinary and upscale homes respectively and waives the tax on homes with per capita floor space less than 60 square meters.

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Copyright Shanghai Daily: Business