H. C. WANG ET AL.
Table 3.
The revenue from land leasing and its position in the local fiscal reve-
nue.
Year Local fiscal revenue
(billion) Land revenu e/local fisc al
revenue (%)
2001 780.3 -
2002 851.5 34.8
2003 980.5 37.8
2004 1244.1 47.4
2005 1509.2 36.5
2006 1828.1 42.0
2007 2356.5 50.9
2008 2864.5 33.5
2009 3285.1 48.8
2010 3538.3 76.6
Source: China statistical yearbook of land and resources (2002-2011).
should encourage fair land transaction within market channels
(Zhu, 1999).
The collective should have a bundle of complete land prop-
erty rights, and the farmers would be allowed to rent and trans-
fer the rural land (Zhang, 2000). Land privatisation is helpful to
unify the dual land market. Thus, local governments focus on
regulating land use through effective urban and land use plan-
ning (Yi, 2009).
Conclusion
The root of land-related issues in urban expansion lies in the
dual land market and low-cost land expropriation, unifying the
dual land market and allowing farmers to negotiate with poten-
tial land users is an ideal choice. That would help dispossessed
farmers to benefit from the land appreciation in urbanization
process.
Local extra-budgetary revenue reduction would be offset by
property tax. A property tax on existing residential and com-
mercial real estate can be introduced to consolidate local tax
bases. With the introduction of property taxes, the negative
impacts of marketizing land expropriation on local fiscal reve-
nue would be offset.
Acknowledgements
Thank the critical comments given Prof. Jianping Xie,
Southwest University of Chongqing, and Dr. Xinchuan Wang,
Economic Daily of China.
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