Reform and Improvement of China’s Property Tax System

China's property tax reform follows a phased "pilot - legislation - refined pilot" path. But coordination among multiple parties is challenging, and differences in institutional design slow progress. As a key part of the fiscal system, the reform must adhere to tax - optimization rules, fit socio - economic development, and fix structural issues. In China's new development stage, growing income inequality has made the redistributive role of taxation a focus. This study analyzes property tax reform from the perspective of wealth distribution, to clarify its regulatory function and support improvements to the tax system. Analysis reveals three key systemic flaws: (1) structural imbalance between excessive transaction taxes and insufficient holding taxes; (2) overlapping levies and inequitable burden distribution; and (3) suboptimal institutional design. To address these, we propose: (1) streamlining transaction-phase taxes (e.g., reducing Cultivated Land Occupation Tax); (2) increasing holding-phase tax ratios; (3) establishing market-value-based assessments; and (4) implementing broad-based progressive taxation.