With the rapid urbanization of population and land, land finance has become a unique economic phenomenon in China at this stage. In the new round of fiscal and tax system reform in China, it is imminent to promote the system transition from land finance to real estate taxation finance in a timely and appropriate manner.In urban development, how to ensure the urban public goods as the capital source of original capital accumulation and operation, is the essence and logical starting point of fiscal transformation. From a practical point of view, the transformation of land finance is facing huge resistance: firstly, there is the risk of local debt caused by land credit during the rapid expansion of land finance; secondly, China’s real estate market is sensitive to external shocks, and the imposition of real estate taxes will lead to turmoil in the real estate market, and will seriously affect the real economy.Recommendations for this: firstly, speed up the real estate tax legislation, establish and improve the real estate tax system; secondly, incorporate the real estate tax reform into the overall framework of the fiscal and taxation system reform; thirdly, straighten out the administrative and financial powers of the central and local governments; fourthly, build a new type of local government financing system; fifthly, gradually promote the transformation of land finance; sixthly, cultivate the real estate tax base, and gradually expand the scope of taxation for real estate ownership; seventhly, encourage citizens to participate in the construction of the real estate tax fiscal system.
