After raising the price of fuel, electricity, or even some food, there is now room for more property tax. The latter may reach records this year. But not all municipalities are equal in the face of this tax, which is paid by French property owners. Residents of Strasbourg, for example, will see their taxation increase by 12.6% in 2022 versus 5% in Dijon.
Why property tax may increase this year?
The increase in property tax is partly due to inflation, but also to a change in the way it is calculated. Since 2018, this tax has been calculated on the basis of the cadastral rental value of the property, reassessed annually by Bercy in accordance with the change in the consumer price index (IPC). But faced with inflation that reached 4.5% year-on-year in March, according to an initial estimate released this Thursday, March 31 by INSEE, the cadastral value of the lease will be revalued this year by 3.4% against 0.2% last year. year. , tells us the General Directorate of Public Finance (DGFIP). Result: the property tax should mechanically increase. “Under the old rule, deputies and senators could adjust the increase in bases. There is a very penal automatic calculation,” exclaims Pierre Autus, CEO of the National Union of Property Owners (UNPI) in columns Parisian.
According to the latest data from the National Property Tax Observatory, released in October by the National Union of Property Owners (UNPI), property taxes have increased by an average of 27.9% in ten years. Among the cities most affected by its growth, we find Nantes with a 37.5% growth in ten years, followed by Lille (+36%).
Which municipalities will see property tax hikes the most in 2022?
“It’s too early to talk about it,” UNPI replies. However, some municipalities have already set a tax rate that will apply to owners. Because remember, local governments (municipalities, inter-municipalities, and departments) have to apply rent revaluation, but can then change their tax rate. According to the newspaper, Strasbourg (Bas-Rhin) opted for a 12.6% property tax increase in 2022. In Tours (Indre-et-Loire) an increase of 15.3% was recorded compared to 8.6% in Annecy (Haute-Savoie) or even 6% in Seine-et-Oise (Yvelines). The reason for this discrepancy? Municipalities want to offset losses or amortize the costs of current projects. For example, Strasbourg suggests it wants to fund “a €1.5 billion investment plan, 43% of which is dedicated to mobility,” explains Pia Imbs, president of the city’s Eurometropolis. Among the projects being discussed, Strasbourg plans to develop bike lanes as well as extend the F tram line to the municipality of Wolfisheim by 2025.
In total, the property tax has enabled communities to recoup €35.3 billion in revenue in 2020, according to UNPI.
Who is affected by property tax?
The property tax imposed by the municipality applies to all property owners. “For individuals, these are mainly residential premises, floors of buildings and land plots that form a significant and direct dependence on these buildings and parking lots, regardless of whether they occupy premises or not,” the website of the Ministry of Economy clarifies, before pointing out that the owners caravans are exempt from this local tax “unless they are secured with stone anchorages”. Property tax may also be exempt from tax for various reasons listed by the ministry.
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When to pay property tax?
Each owner must pay property tax annually. The tax notice is usually available online or mailed three weeks before the payment deadline. The last one is scheduled for October 15th.
It should be noted that other taxes may be listed on the same tax notice as the property tax, such as the Domestic Waste Collection Tax (Teom) or the Special Equipment Tax (TSE), which are levied by two-thirds of the municipalities.