Based on the analysis of the defects of the current resource tax system, this paper proposes the thought and policy suggestions of China’s resource tax reform. The resource tax reform should attach importance to the top design and basic orientation, as well as to the concrete system design and arrangements. This paper holds that the basic orientation of China’s resource tax reform is to reposition the function of resource tax, establish the system of royalties, set up compound resource tax systems and optimize the elements of resource tax system. Thus, it proposes the following policy suggestions: 1)to expound the incidence of resource tax, bring water, forest, meadow, land, rare plants and animals into the scope of resource tax; 2) to establish dynamic tax rate system, improving the abilities of resource tax to regulate the economy; 3) to change the taxation basis from sales quantity or deportation and use quantity to exploration quantity, highlighting the environment-protecting function of resource tax; 4) to clear charges on resources and standardize preferential tax, so as to lower the risk of government capture; 5) transform the oil windfall tax to excess profit tax of oil resource, so as to establish the compound resource tax system.