2023-12-14 16:30:16
Housing tax: its increase will no longer be linked to property tax
The recent reform of the housing tax marks a significant turning point in French local taxation. This modification, initiated by senators, allows municipalities to increase the housing tax on second homes without having to adjust the property tax accordingly. This independence offers mayors unprecedented room for maneuver to manage local finances. As a reminder, owners of a second home have until December 15, 2023 to pay their housing tax by check, until December 20 for online payment.
The General Directorate of Public Finances (DGFIP) supported this reform in that it guarantees greater autonomy to local authorities. In fact, around half of French municipalities, particularly those with a housing tax rate lower than the departmental average, will benefit from this flexibility. This measure, integrated into the 2024 budget, aims to strengthen the financial autonomy of local elected officials, while responding to the specific challenges of municipalities, particularly in terms of housing.
The surtax extended to a greater number of municipalities
The reform of the housing tax has a direct and significant impact on owners of second homes. Since 2020, municipalities have the possibility of increasing the housing tax on these residences from 5% to 60%.. In 2023, more than 3,000 municipalities, mainly those with high tourist activity, have adopted this increase. In 2024, 2,546 municipalities (compared to 1,151 in 2023) will have the possibility of establishing this surcharge on the housing tax following the latest reform.
As a reminder, the reform of the housing tax for main residences, initially planned for 80% of households, ultimately led to its abolition. Obviously, this caused significant financial losses for the municipalities. Mayors have continued to demand more autonomy in the management of local taxes, a request to which senators have only just responded.
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