Detailed rules for the upcoming property tax are in the making, a Hubei official said on Aug 21, a day after media reported that China will expand its property tax policy to Central China's Hunan and Hubei provinces.
Xu Zhengyun, spokesman for the taxation bureau of Hubei province, said the details of the property tax rules are being finalized, but refrained from revealing the content and the timetable of the plan that shook the property industry.
Media reports said that second homes and further property bought in Hunan and Hubei provinces will be subject to a tax, though the tax rate won't be high. The tax will be based on the market valuation of the property, rather than its original value.
Until now, the pilot property tax policy is limited to Shanghai and Chongqing. Tax on those cities is based on the property's original value.
The recent housing price rebound has fueled calls for expansion of the property tax policy, which is expected to curb the number of homes investors buy.
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