1.       Taxpayers

Taxpayers are owners of house property, including the owners, mortgagees, custodians and users of house property owned by State, collective and individual.

Specific Situations	Taxpayers
Owner is State	Operational and managerial units
Owner is collective or individual	Collective or individual
House property pawned	Mortgagees
The owner, mortgagee of house property right is not in the location of the house or the house property right is not determined and the pawn rent dispute is not solved	Custodians and users of house property
The management departments, tax exempt units and tax paying units	Users of house property

2.       Tax Base

Two different tax bases are residual value and rental income.

(1)      The basis of the residual value:

The tax base is the residual value of original value of property payable minus 10%-30% deduction ratio. The deduction ratio is decided by government of every province, autonomous region and municipality.

(2)      The basis of the rental income:

The tax base is the rental income.

3.        Tax Rate

(1)   The basis of the residual value: 1.2%

(2)   The basis of the rental income: 12%

4.       Computation of Tax Payable

Basis	Tax Base		Tax Rate	Tax Payable Formula
Residual Value	Residual Value （Original value minus deduction ration of 10% to 30%）		1.2%	Tax payable of whole year = Original Value of Property × (1- Deduction Ratio) × Annual Tax Rate 1.2%
	Underground Industrial Buildings	Residual Value is 50% to 60% of Original Value	1.2%	Tax payable of whole year = Original Value of Property × (50% to 60%) × (1- Deduction Ratio) × Annual Tax Rate 1.2%
	Underground commercial and other Buildings	Residual Value is 70% to 80% of Original Value	1.2%	Tax payable of whole year = Original Value of Property × (70% to 80%) × (1- Deduction Ratio) × Annual Tax Rate 1.2%
Rental Income	House Property Rental		12%	Tax payable of whole year＝Rental Income × 12%（4% for individual）

5.       Major exemptions

(1)  House Property Tax may be exempt on the house property for the own use of State organs, people' s organizations and the armed forces;

(2)   The house property for the own use of institutions whose operating funds are allocated by State finance departments, such as schools, medical and health units, nurseries, etc. are exempted from house property tax;

(3)   The house property for the own use of religious temples and shrines, parks and places of historic interest and scenic beauty are exempted from house property tax;

(4)   The house property owned by individuals for non-business use;

(5)   Other house property stipulated by financial department are exempted from house property tax.