French General Tax Code
In force1. From 1st January 2011, the business value added levy collected by the public inter-municipal cooperation establishments mentioned in II of article 1379-0 bis is equal to the share mentioned in 5° of I of article 1379, by the fraction defined in the penultimate paragraph of 1° of 3 of I of article 1640 C. The member municipalities of these establishments receive the additional fraction, provided for in the last paragraph of 1° of 3 of I of the same article, of the share mentioned in 5° of I of article 1379.
These public establishments and their member municipalities may modify the fractions mentioned in the first paragraph of the present 1, on the basis of concordant decisions taken by the qualified majority provided for in the first paragraph of II of article L. 5211-5 du code général des collectivités territoriales, within the period provided for in I of article 1639 A bis of this code. This majority must include, where applicable, the municipal councils of municipalities whose total revenue from the business value added tax represents at least one-fifth of the revenue from the taxes mentioned in I of article 1379, plus the tax on commercial surfaces provided for in article 3 of law no. 72-657 of 13 July 1972 instituting measures in favour of certain categories of elderly shopkeepers and craftsmen, collected by the public establishment for intermunicipal cooperation in the previous year.
2. In the event of a merger of public establishments of inter-municipal cooperation with their own tax status mentioned in II of article 1379-0 bis, the public establishment of inter-municipal cooperation resulting from the merger collects the sum of the products of assessment on the added value of businesses that would have been allocated to each of the pre-existing public establishments of inter-municipal cooperation in the absence of a merger and the municipalities that are members thereof collect the product of assessment on the added value of businesses that would have been allocated to them in the absence of a merger.
For subsequent years:
a) The fraction intended for the public establishment of inter-municipal cooperation resulting from the merger is equal to the average of the fractions applicable to the public establishments of inter-municipal cooperation in the year preceding the merger, weighted by the relative size of their business value added levy product;
b) The communes that are members of the public establishment resulting from the merger receive the fraction that is complementary to 100% of the fraction defined in a.
In the event of a municipality being attached to a public inter-municipal cooperation establishment mentioned in II of Article 1379-0 bis, the fraction of the business value added levy accruing to the public inter-municipal cooperation establishment is applicable to the business value added levy for businesses located on the territory of this municipality from the year following that of the attachment.
3. When, as a result of the application of 2 of this article, the revenue from the taxes mentioned in I of article 1379 and the tax on commercial surfaces provided for in article 3 of the aforementioned law no. 72-657 of 13 July 1972 received by a municipality decreases by more than 5%, the public establishment for inter-municipal cooperation of which it is a member pays it compensation equal to:
- in the first year, 90% of the fraction of its loss of revenue greater than 5%;
- in the second year, 75% of the allocation received the previous year;
- in the third year, 50% of the allocation received in the first year.
This three-year period may be reduced by mutual agreement between the governing body of the establishment and the municipal council of the beneficiary municipality.
This compensation constitutes a compulsory expense for the public establishment of intercommunal cooperation.
4. The public establishments for inter-municipal cooperation mentioned in II of article 1379-0 bis may, upon the concurring deliberations of the public establishment and the member municipalities, substitute themselves for the latter for the collection of the repayment from the Fonds national de garantie individuelle des ressources communales et intercommunales provided for in 2.1 of article 78 of law n° 2009-1673 of 30 December 2009 of finance for 2010, with the exception of the fraction calculated in accordance with the procedures provided for in 1° and 2° of a of D of IV of the same 2.1.
These public establishments may, by joint decision of the public establishment and the member municipalities, replace the latter for the collection of the compensation allowance for the reform of business tax calculated in accordance with the procedures provided for in II and III of 1.1 of the same article 78, with the exception of the part calculated according to the procedures provided for in a and b of D of IV of the same 1.1.
Where applicable, upon concordant deliberations of the public establishment of inter-municipal cooperation and the member municipalities, the levy on resources calculated according to the procedures provided for in II and III of 2.1 of the said article 78 may be charged to this public establishment, with the exception of the fraction calculated in accordance with the procedures provided for in 1° and 2° of a of D of IV of the same 2.1.
By way of exception to I of article 1639 A bis, the public establishment of intercommunal cooperation subject to the present article and resulting from a merger or having undergone a change in scope and its member communes have until 15 January to take the deliberations provided for in the present 4.
