2023-08-29 19:43:45
The arrival of the first property tax notices from this Wednesday risks blurring the government’s message a little on its promise not to increase household taxes. Because this year, the note will be particularly heavy for the owners, whether their municipality or intermunicipality has increased their rate or not. The increase will be at least 7.1% due to the fixed revaluation of rental values, which serve as the basis for calculating this tax.
Voted in the last finance law, this revaluation follows the evolution of the harmonized consumer price index from November to November. Given the surge in inflation, it has reached peaks, well above previous years (+3.4% in 2022, +0.2% in 2021).
+52% in Paris, +25% in Grenoble…
And in the communities that have activated the tax lever, it will be added to sometimes substantial rate increases: +52% in Paris, +25% in Grenoble, +14.3% in Metz, +10% in Limoges or +9% in Lyons. The municipalities having tightened the tax pressure remain however “a minority”, underlines one with the Association of the mayors of France (AMF). In all, less than one in five large cities has increased its property tax rate this year, as the FSL firm pointed out last May. Only 18% of cities with 40,000 to 100,000 inhabitants or their intermunicipalities have done the same.
The presidential camp and local elected officials pass the buck. Asked last week on France Bleu about the increase in the property tax announced in several cities, Elisabeth Borne had mentioned “decisions of local authorities”.
“It should not be said that it is the fault of the government. Local authorities have full power over rates, which they can play up or down. Local taxes are the responsibility of local elected officials, ”also insists Jean-René Cazeneuve (Renaissance), the general rapporteur for the budget at the National Assembly.
Further increase in 2024
On the side of local authorities, financial constraints are mentioned. “Mayors never raise taxes willingly. This is the completely direct consequence of both the abolition of the financial and fiscal autonomy of local authorities, ongoing transfers of charges and decisions by the State which weigh on the expenditure of local authorities without being compensated , like the new increase in the index point for civil servants, ”says Antoine Homé, PS mayor of Wittenheim (Haut-Rhin) and vice-president of the AMF.
This part risks repeating itself next year, with the property tax set to increase again quite sharply in 2024, due to high inflation. “Based on Banque de France estimates, the flat-rate revaluation of rental values would be 4.2% for 2024,” said Michel Klopfer, a consultant specializing in local finance.
“The property tax is indexed to inflation because it is a very important revenue for the communal block. Due to inflation, municipalities also see their expenditure increase. So ensuring an increase in their income so that they can provide local public service seems to me logical and very healthy, ”says Jean-René Cazeneuve. The AMF also continues to demand an indexation of the overall operating grant, a request always rejected by the executive.
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