And if the house taxremoved for main residences, was making a comeback? Launched by the mayor of Meaux (77) Jean-François Copé, the idea has gained ground. To the point that the mayors are suspected of putting pressure on the government to revive this tax which is currently paid only by property owners. second homes. «This is false! We are against the return of the house tax and have never asked for it», assures the Figaro Emmanuel Sallaberry, co-president of the finance commission of the Association of Mayors of France. “In the fiscal panic that has gripped the country, it would not be a good idea to revive the home tax» adds the mayor of Talence (33).
However, mayors are actually considering a disguised housing tax to replace the property tax that only owners pay and which, according to our information, represents almost 41% of the operating revenue of all municipalities. Because it’s auniversal contribution» (see video below). Like the housing tax, this would also be paid by tenants. “This equal contribution for all French people must be part of a structural reform, with a lower level of mandatory contributions. It’s time for the government to review local taxation and not ask us to pay off a debt we didn’t create“, insists Emmanuel Sallaberry who refuses to be the “lightning rod for French anger».
We don’t say no to the government
With the disappearance of the home tax, elected officials must fill a gap deficit of 20 billion euros which according to the mayors the government has never compensated, contrary to Emmanuel Macron’s promise. Ideas are circulating: Matignon is thinking of increasing the taxes on transfers (the so-called “notary fees”) that buyers of properties pay and which go into the pockets of the State, local authorities and notaries.
The National Union of Property Owners (UNPI) wants tenants to pay part of the property tax and also supports this idea of the “universal contribution”. “There is a gap between those who pay and those who benefit from public services and infrastructure funded by taxes they don’t paydenounces Sylvain Grataloup, president of the UNPI who thinks of a “a lump sum associated with reductions based on taxpayers’ civic behavior and income». This tax, more incentivizing than punitive, must unite the French around a common project for the benefit of the community.»
A measure therefore supported by the mayors but also, in the government, by Catherine Vautrin, minister of Partnership with the Territories and Decentralisation, who relaunched the idea of a “universal territorial contribution», during a Local Finance Commission, on 7 October. And he confirmed his support for this universal contribution. “You need to think about possible participation in city or village life. There is nothing free», the minister, who ruled out the return of the house tax, declared to Le Parisien. Laurent Saint-Martin, Minister of Budget and Public Accounts, also stated that “nono taboos on local taxation and who did not oppose reflection on the matter to open up greater autonomy to communities.»
Interview: The Future of Housing Tax in France
Time.news Editor: Welcome to Time.news, where we dive into pressing issues shaping our world today. I’m joined by Emmanuel Sallaberry, co-president of the finance commission of the Association of Mayors of France. Emmanuel, thank you for being here. There’s been quite a stir about the potential revival of the housing tax. Can you give us some insight into what’s happening?
Emmanuel Sallaberry: Thank you for having me! Yes, the discussions around the housing tax have indeed sparked significant debate. Initially, the tax was removed for primary residences, but we are now seeing some mayors, including Jean-François Copé from Meaux, push for its return, albeit with a shift in how it would be applied.
Time.news Editor: What specifically is motivating this push? Is it purely financial due to the 20 billion euro deficit that’s been mentioned?
Emmanuel Sallaberry: Precisely. With the house tax gone, municipalities have faced significant revenue shortfalls. The removal of this tax has not been compensated by the government, which has left a substantial gap in their budgets. Some mayors feel pressured to create a new form of tax to fill that void, which could potentially involve tenants as well, making it a more universal contribution.
Time.news Editor: So, you’re suggesting that a new housing tax could be structured in a way that includes tenants alongside property owners. Why do you think this would be more equitable?
Emmanuel Sallaberry: Well, the idea is rooted in creating a fair contribution from all residents, regardless of their ownership status. It’s not just about property owners shouldering the burden; everyone benefits from local services funded by these taxes. The call for a structural reform of local taxation is crucial—aiming for a lower level of mandatory contributions while ensuring all stakeholders contribute fairly.
Time.news Editor: However, there are concerns from homeowners, particularly those represented by groups like the National Union of Property Owners, who see this as yet another burden. How do you validate their concerns?
Emmanuel Sallaberry: Those concerns are absolutely valid. We’re not proponents of wreaking havoc on property owners. This proposed tax shift isn’t about making life more difficult but about ensuring that local governments can maintain essential services. It’s a delicate balance that needs to be managed through careful reform rather than sudden, sweeping changes.
Time.news Editor: Some media sources claim that mayors are putting pressure on the government to enact this disguised housing tax. How official is this movement, and what are the mayors actually pushing for?
Emmanuel Sallaberry: I want to clarify that while there is dialogue around the need for additional revenue, many mayors, including myself, have publicly stated our opposition to simply reinstating the old tax system in its previous form. We recognize the need for reform, but we do not want to become the scapegoats for widespread fiscal discontent, as you noted earlier.
Time.news Editor: I appreciate that clarification. As we wrap up, what are the next steps for the mayors in this discourse about local taxation?
Emmanuel Sallaberry: The next steps involve continued discussions with the government to explore viable alternatives to the current model. We’re advocating for transparency and collaboration, ensuring that any tax restructuring is fair and sustainable for all residents. The message is clear: we can’t allow the burden of fiscal challenges to fall solely on the backs of property owners or tenants.
Time.news Editor: Thank you, Emmanuel, for shedding light on this complex yet critical issue. It seems the conversation about housing tax in France is far from over. We appreciate your insights today!
Emmanuel Sallaberry: Thank you! It’s been a pleasure discussing this important matter.