8.1% rise in French local taxes

Local taxes in France are up by 8.1% this year, after a 4.4% rise in 2008, and more rises in the taxe foncière and taxe d’habitation could be on the way.

The Direction Générale des Collectivités Locales (DGCL) estimates that a total of €71 billion will be collected in direct local taxes this year through:

• The taxe foncière (€22.3 billion) – paid by property owners
• The taxe d’habitation (€16.5 billion) – paid by whoever is living in the place
• The taxe foncière sur les propriétés non bâties – basically a tax on undeveloped land – €880 million
• The taxe professionnelle (TP) – a business tax (€31.3 billion)

Direct local taxes now account for about two fifths of the operating revenue of local government. On Tuesday President Sarkozy confirmed his aim to abolish the business tax (TP), so this could have a serious knock-on effect on the other local tax rates, which are likely to continue rising.

“Les collectivités locales s’inquiètent du risque d’érosion de leurs ressources avec la suppression de la taxe professionnelle prévue au 1er janvier 2010.”

Local authorities are worried about the risk of their resources being eroded with the removal of business tax scheduled for 1 January 2010.
- Le Point

And in case you need reminding and aren’t doing it by direct debit, I think this year’s deadline for paying your taxe d’habitation is 16 November.

Meanwhile in Ireland, local rates for householders were abolished in 1977. But yesterday’s hard-hitting report by the OECD is adding to the voices pushing for the reintroduction of a property tax to fund local services.

Related posts:

• Béziers is third highest for local taxes
• My quick guide to French property taxes – taxe d’habitation, taxe foncière and the redevance audiovisuelle (TV tax)
• The maison secondaire in France and Ireland