French General Tax Code
In forceI. - The rental value of each built property or fraction of a built property, other than premises mentioned in I of article 1496, industrial establishments mentioned in article 1499 and premises whose rental value is determined under the specific conditions provided for in article 1501, is determined in accordance with the procedures set out in II or III of this article.
The properties mentioned in the first paragraph are classified into sub-groups, defined according to their nature and purpose. Within a sub-group, they are classified by category, according to their use, their physical characteristics, their location and their consistency. The sub-groups and categories of premises are determined by decree in the Conseil d'Etat.
II. - A. - The rental value of each built property or fraction of a built property referred to in I is determined on the basis of the state of the rental market on the reference date of 1 January 2013, subject to the update provided for in III of article 1518 ter.
It is obtained by applying a rate per square metre determined in accordance with 2 of B of this II to the weighted surface area of the premises defined in C of this II.
B. - 1 In each department, one or more assessment sectors are created, grouping together the communes or cadastral sections of communes which, within the department, present a homogenous rental market.
For the application of this 1:
1° The territory of the Lyon metropolitan area is, together with the territory of the Rhône department, assimilated to the territory of a department;
2° The territory of the City of Paris is assimilated to the territory of a department.
2. Rates per square metre are determined on the basis of average rents recorded in each assessment sector by property category.
Failing this, where rents are in short supply or cannot be retained, these rates shall be determined by comparison with the rates set for other categories of premises in the same sub-group in the same assessment area.
In the absence of sufficient evidence or evidence that can be retained within the same assessment sector, these rates are determined by comparison with those applied for properties of the same category or, failing that, of the same sub-group in assessment sectors with similar rent levels, in the department or in another department.
Rates per square metre may be increased by 1,1,1,15,1,2 or 1,3 or reduced by 0,7,0,8,0,85 or 0,9, by applying a location coefficient designed to take account of the particular situation of the parcel on which the property is based within the assessment sector.
C. - The weighted surface area of a premises is obtained from the surface area of its various parts, reduced, where applicable, by coefficients set by decree, to take account of their use and their respective physical characteristics.
III. - A. - The rental value of properties or parts of properties with exceptional characteristics is determined by applying a rate of 8% to the market value of the property or part of the property, as it would be if it were free of any tenancy or occupation on the reference date defined in B of this III.
Failing this, the market value of the property or fraction of a property is determined by adding the reconstruction value of the property on the reference date to the market value of the land, estimated on the reference date by comparison with the value resulting from transactions relating to building land located in a comparable area.
The rental value mentioned in the first paragraph of this A is reduced by half to take into account the impact of the allocation of the property or part of the property, in whole or in part, to a public service or a service of general interest.
B. - The rental value of the properties and fractions of properties mentioned in A of this III is, subject to the update provided for in the second paragraph of IV of Article 1518 ter, determined on 1 January 2013 or, for those created after 1 January 2017, on 1 January of the year of their creation.
