French General Tax Code
In forceI. - The public establishments for inter-municipal cooperation mentioned in 1 of III of Article 1379-0 bis are substituted for the member municipalities for the provisions relating to the business property tax and the business value added tax paid by businesses located in an economic activity zone that is located on the territory of one or more member municipalities, and the collection of the proceeds of these taxes.
I bis. - I is applicable to communities of communes which, before 31 December 2010, have opted, pursuant to the first sentence of the first paragraph of II in the wording in force until that date, for the application of the provisions of that sentence.
II. - 1. The public establishments for intercommunal cooperation mentioned in 2 of III of Article 1379-0 bis are substituted for the member municipalities for the provisions relating to the business property tax on electricity production facilities using mechanical wind energy located on the territory of these municipalities as of the publication of the loi n° 2005-781 du 13 juillet 2005 de programme fixant les orientations de la politique énergétique, and collect the proceeds of this tax.
2. The public establishments for inter-municipal cooperation mentioned in 1 also replace the member municipalities for the collection of:
a) The proceeds of the flat-rate tax on network companies relating to electricity production facilities using hydraulic mechanical energy located in inland waters or in the territorial sea and to electricity production facilities using wind mechanical energy installed before 1 January 2019, provided for in Article 1519 D ;
b) Upon deliberation by the municipality in which the installations are located, taken under the conditions provided for in I of Article 1639 A bis, of a fraction of the revenue collected by the municipality from the components of the flat-rate tax on network companies relating to electricity production installations using mechanical wind energy installed as of 1 January 2019, provided for in the same Article 1519 D.
II bis. - II is applicable to communities of communes that have, before 31 December 2010, opted, pursuant to the second sentence of the first paragraph of the same II in its wording in force until that date, for the application of the provisions of that sentence.
III. - 1. a) The council of the public establishments for intercommunal cooperation applying I or II votes on the rates of the business property tax applicable to these schemes under the conditions determined in Article 1636 B decies.
When the public establishment for intercommunal cooperation decides to apply I and 1 of II, it may set two different rates for each of these schemes. In this case, and when a facility referred to in 1 of II is located in an area mentioned in I, 1 of II is applicable.
b) Tax rates different from the Community rate set pursuant to a may be applied for the establishment of the first twelve Community budgets. The differences between the rates applicable in each member municipality and the Community rate are reduced under the conditions provided for in b and c of 1° of III of Article 1609 nonies C.
2. The III of article 1638 quater is applicable in the event of incorporation of a commune or part of a commune into an economic activity zone or in the event of attachment of a commune on the territory of which electricity production facilities using mechanical wind energy are located to a public establishment for inter-communal cooperation applying II.
2 bis. The établissements publics de coopération intercommunale mentioned in III of article 1379-0 bis benefit from the compensation provided for in IV bis of article 6 of the 1987 finance law (no. 86-1317 of 30 December 1986), in place of their member municipalities, for losses of business property tax bases resulting, in the economic activity zone or for electricity production facilities using mechanical wind energy, from the application of the last paragraph of II of l'article 1478.
For public establishments of inter-municipal cooperation subject in 2011 to the provisions of this article, the business tax rate to be used is the weighted average business tax rate recorded in 1986 in all the communes that are members of the public establishment of inter-municipal cooperation; this rate is, where applicable, increased by the business tax rate voted in 1986 by the public inter-municipal cooperation establishment that has opted for the tax system provided for in 2° of 1 or 2 of III of article 1379-0 bis or from which the community of communes was formed; these rates are multiplied by 0.960.
For public establishments of inter-municipal cooperation subject to the provisions of this article for the first time from 2012, the compensation is calculated using the weighted average rate of the communes that are members of the public establishment of inter-municipal cooperation.
For the application of the penultimate paragraph of this 2 bis, the weighted average rate is determined by the ratio of the sum of the compensation for the reduction for the creation of an establishment paid to the member communes in respect of the year preceding the first year of application of this article and the sum of the exempt bases or abatements applied in respect of the year preceding this same first year of application.
3. The public establishment for intercommunal cooperation may pay to the commune or communes whose economic activity zone or zones are transferred to it a compensation allocation equal at most to the product of the business property tax levied by them in the year preceding the institution of the community rate.
The council of the public establishment for inter-municipal cooperation sets the amount of this allocation after consultation with the commune or communes concerned.
4. The public establishment for inter-municipal cooperation pays to the commune or communes all or part of whose territory is located within a wind energy development zone or, in the absence of a wind energy development zone, to the communes where the installations mentioned in II are located and to the neighbouring communes that are members of the public establishment for inter-municipal cooperation an allocation to compensate for the environmental nuisances associated with installations using mechanical wind energy. This allocation may not exceed the proceeds of the business property tax and the tax provided for in article 1519 D levied on these installations.
The tax potential of each commune and public establishment of inter-communal cooperation with its own tax status is corrected symmetrically to take account of the application of this 4. However, this correction is removed for the public establishment of inter-communal cooperation with its own tax status in the calculation of the tax potential taken into account to determine the inter-communal grant received during the first year of adoption of the system provided for in Article 1609 nonies C.
5. The public establishments for inter-municipal cooperation mentioned in III of article 1379-0 bis may, upon concordant 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 no. 2009-1673 of 30 December 2009 on finance for 2010, excluding 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, on the basis of concordant deliberations by the public establishment and the member municipalities, substitute themselves for 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, excluding the portion calculated in accordance with 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 for inter-municipal cooperation and the member municipalities, the levy on resources calculated in accordance with the procedures provided for in II and III of 2.1 of the said article 78 may be charged to this public establishment, excluding the portion calculated in accordance with the procedures provided for in 1° and 2° of a of D of IV of the same 2.1.
As an exception to I of article 1639 A bis, the public establishment of inter-municipal cooperation subject to this 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 this 5.
