The discussion on the reform of the property tax has been ongoing for over a decade, but most of the proposed ideas have not yet been implemented. Although the government has selected Shanghai and Chongqing as pilot cities to explore the possibility of the reform, no breakthrough progress has been made so far. The obstacles to the reform come from multiple aspects. Firstly, after the reform, the land transfer revenue, which is an important source of local fiscal income, may disappear. This will weaken the fiscal capacity of local governments. Secondly, to make up for the lack of local fiscal capacity, the fiscal relationship between the central and local governments needs to be adjusted, which will trigger a game of interest distribution between the two. Thirdly, the reform will greatly reverse the situation of the real estate market. The real estate industry may lose its status as an economic growth pillar, and the transformation of the economic structure inevitably leads to fluctuations. Finally, the reform will cause a redistribution of social wealth, which may trigger social protests. The consequences of the reform are very uncertain, so the authorities hold a very cautious attitude towards the reform.