China Begins Property Tax Pilot Programs

(Beijing) - The long-awaited property tax, touted by many as a way to curb runaway housing prices, was unveiled in Chongqing and Shanghai on the night of January 27 after much debate in 2010.

The tax came after the State Council, China's cabinet, raised the minimum down payment for second-home purchases from 50 to 60 percent on the same day.

The property tax, ranging from 0.5 percent to 1.2 percent, came into effect January 28, according to the detailed plan by the Chongqing government, a strong advocate for the tax. Chongqing mayor Huang Qifan expected property tax revenues to reach 150 million yuan for 2011.