French General Tax Code
In forceI. - 1. With a view to establishing the property tax on built-up properties, the business property tax, the council tax on second homes and other furnished premises not allocated to the principal dwelling and the household waste removal tax, the rental value of the built-up properties mentioned in I of article 1498 is corrected by a neutralisation coefficient.
This coefficient is equal, for each tax and each territorial authority, to the ratio between, on the one hand, the sum of the unrevised rental values on 1 January 2017 of the built properties mentioned in the same I of article 1498 taxable in respect of that year in its territorial jurisdiction, with the exception of those mentioned in 2 of this I, and, on the other hand, the sum of the revised rental values of these same properties on the reference date of 1 January 2013.
The neutralisation coefficient determined for each of these taxes also applies for the establishment of their ancillary taxes.
The coefficients determined for a commune apply to the bases imposed for the benefit of the public establishments for inter-communal cooperation of which it is a member.
For the City of Paris, the neutralisation coefficient applicable for the establishment of the property tax on built-up properties is equal to the neutralisation coefficient applied in 2018 for the commune of Paris.
2. Notwithstanding 1 of this I, the neutralisation coefficient applied, for each tax, to the rental value of the built properties mentioned in I of Article 1498 and taken into account in the tax bases of La Poste, under the conditions provided for in Article 1635 sexies, is equal to the ratio between, on the one hand, the sum of the unrevised rental values of these properties on 1st January 2017 taxable in respect of that year and, on the other hand, the sum of the revised rental values of these properties on the reference date of 1st January 2013.
3. For municipalities, each coefficient mentioned in 1 and 2 applied to the municipal rental values used to establish the tax base for property tax on built-up properties is equal to the ratio between:
1° On the one hand, the sum of the product of the tax rate for property tax on built-up properties for the commune, applied in 2020, by the coefficient mentioned in 1 or 2 determined for the commune and the product of the tax rate for property tax on built-up properties for the département, applied in 2020, by the coefficient mentioned in 1 or 2 determined for the département;
2° On the other hand, the sum of the tax rates for property tax on built-up properties for the commune and the département applied in 2020.
II. - I of this article ceases to apply the year in which the revision of the rental values of residential premises and premises used for home-based paid employment provided for in B of II of article 74 of law no. 2013-1279 du 29 décembre 2013 de finances rectificative pour 2013.
III. - For taxes due in respect of the years 2017 to 2025:
1. Where the difference between the unrevised rental value at 1 January 2017 and the rental value resulting from I is positive, the latter is increased by an amount equal to half of this difference;
2. Where the difference between the unrevised rental value at 1 January 2017 and the rental value resulting from the same I is negative, the latter is reduced by an amount equal to half of this difference;
3. For municipalities, each increase or decrease mentioned in 1 and 2 applied to the municipal rental values used to establish the tax base for property tax on built-up properties is equal to the ratio between:
1° On the one hand, the sum of the product of the tax rate for property tax on built-up properties for the commune, applied in 2020, by the increase or decrease mentioned in 1 or 2 applied to the rental values used to establish the tax base for property tax on built-up properties for the commune and the product of the tax rate for property tax on built-up properties for the département, applied in 2020, by the increase or decrease mentioned in 1 and 2 applied to the rental value used to establish the tax base for the departmental property tax on built-up properties ;
2° On the other hand, the sum of the tax rates for property tax on built-up properties for the commune and the department applied in 2020.
This III does not apply to the premises mentioned in 2 of I of this article, or to premises affected by the application of I of article 1406 after 1 January 2017, unless the change in consistency concerns less than 10% of the surface area of these premises.
IV. - For the purposes of determining the rental values not revised as at 1 January 2017 referred to in I and III, the provisions set out in the present code, in the version in force on 31 December 2016, shall apply.
V. - 3 of I and III shall not apply for the purpose of establishing the taxable amount for the tax provided for in article 1530.
