Subsection 1: General provisions.

I. - The tax potential of a commune is determined by adding together the following amounts:

1° The product determined by applying the average national tax rate for each of these taxes to the communal tax bases for council tax on second homes and other furnished premises not assigned to the main dwelling and for property tax on non-built properties;

1° bis The product determined by applying to the municipal tax bases for property tax on built-up properties the sum of the municipal and departmental property tax rates on built-up properties applied on the territory of the municipality in 2020 multiplied by the correction coefficient mentioned in B of IV of Article 16 of Law no. 2019-1479 of 28 December 2019 on finances for 2020;

1° ter The product determined by applying to the municipal tax bases for property tax on built-up properties the difference between the average national tax rate for this tax and the sum of the municipal and departmental property tax rates on built-up properties applied on the territory of the municipality in 2020;

2° The sum:

a) The product determined by applying the average national tax rate for this tax to the communal business property tax bases; This provision does not apply to communes belonging to a grouping applying article 1609 nonies C of the General Tax Code. For communes belonging to a grouping applying article 1609 quinquies C of the same code, only the communal bases located outside the economic activity zone are taken into account for the application of this provision;

b) And the communal and inter-communal products collected in respect of the business value added levy, the additional tax on property tax on non-built properties and the flat-rate taxes on network companies provided for in the article 1379 of the General Tax Code as well as the tax on commercial surfaces provided for in 6° of article L. 2331-3 of this code, whose revenues have been established on the territory of the municipality, subject to the provisions of II of this article;

3° The sum of the positive or negative amounts resulting from the application of 1.1 and 2.1 of Article 78 of Finance Act no. 2009-1673 of 30 December 2009 for 2010, including the amounts provided for in VIII of the same 2.1, received or borne the previous year by the municipality as well as, for municipalities that are members of a grouping with their own tax status, a fraction of the amounts received or borne in this respect by the grouping and the amount received by the grouping the previous year in respect of the levy on State revenue provided for in III of article 29 of law no. 2020-1721 of 29 December 2020 on finance for 2021, calculated pro rata to the population on 1 January of the year of distribution. For communes created pursuant to Article L. 2113-2, the amounts retained for the first year correspond to the sum of the amounts collected or borne by the pre-existing communes in the previous year;

4°The sum of the revenue collected by the commune in respect of the contribution on mineral waters provided for in article 1582 du code général des impôts, the increase provided for in article 1407 ter of the same code, the flat-rate tax provided for in article 1519 A of the said code and the additional tax on the tax on basic nuclear installations provided for in VI of article 43 of the Finance Act for 2000 (no. 99-1172 of 30 December 1999), the levies on gross gaming revenue mentioned in articles L. 2333-54 et L. 2333-55 of this code, as well as, for the communes that are members of a public establishment for inter-communal cooperation with their own tax status that replaces the communes for the collection of all or part of the revenue from the levy on the gross gaming revenue from casinos previously mentioned, a fraction of this revenue calculated in proportion to the population on 1st January of the year of distribution ;

4° bis The sum of the proceeds, recorded in the management account relating to the penultimate financial year, received by the municipality in respect of the mining royalty provided for in article 1519 of the General Tax Code and the local tax on outdoor advertising provided for in article L. 2333-6 of the present code;

4° ter The sum, divided by three, of the revenue collected by the municipality in respect of the additional tax on registration duties or land registration tax payable on transfers for valuable consideration provided for in article 1584 of the General Tax Code and in respect of the equalisation fund provided for in article 1595 bis of the same code during the penultimate year and the two previous years;

4° quater A fraction, for municipalities that are members of a public establishment for inter-municipal cooperation with their own tax status, of the net proceeds of the value added tax provided for in B of V of Article 16 of Law no. 2019-1479 of 28 December 2019 on finance for 2020 received by the grouping in the previous year, calculated pro rata to the population on 1 January of the year of allocation ;

5° The amount received the previous year in respect of the share of the flat-rate allocation defined in 3° of the I of article L. 2334-7 of this code excluding the amount corresponding to the compensation provided for in 2° bis of II of Article 1648 B of the General Tax Code in its wording prior to the Finance Act for 2004 (no. 2003-1311 of 30 December 2003);

6° The amount received by the municipality the previous year in respect of the levy on State revenue provided for in III of Article 29 of Finance Act no. 2020-1721 of 29 December 2020 for 2021. The portion of the levy compensating for the loss of property tax revenue on built properties resulting from the provisions of 1° of I of the same Article 29 taken into account is multiplied by the coefficient mentioned in B of IV of Article 16 of the aforementioned Law no. 2019-1479 of 28 December 2019.

The bases used are the gross bases for the last year for which the results are known used as the basis for municipal taxation. The average national rates used are those recorded in the last year for which the results are known. However, for communes that are members of a grouping that applies the provisions of article 1609 nonies C of the same code, a national average rate of tax specific to council tax on second homes and other furnished premises not used as a main residence is calculated for the application of 1° of this I on the basis of the revenue collected by these communes alone. The resources and income used are, unless otherwise stated, those of the last year for which the results are known. For the communes that are members of the Lyon metropolis, the departmental rate of property tax on built-up properties refers to the rate of property tax on built-up properties adopted in 2014 by the Rhône department.

II. - 1. The tax potential of a commune that is a member of a grouping with its own tax status applying the tax system defined in articles 1609 nonies C or 1609 quinquies C of the General Tax Code is increased by the compensation allocation received by the commune the previous year and recorded on 15 February of the year of allocation.

2. For communes that are members of such a grouping, the tax potential is increased by the difference, divided between them in proportion to their population, between:

a) The sum of the following amounts:

- the revenue received by the grouping in respect of the business value added levy, the flat-rate taxes on network companies, the additional tax on property tax on undeveloped properties and the tax on commercial floor space;

- the revenue determined by applying the average national rate of taxation on this tax to the inter-communal business value added levy tax bases ;

- the product determined by applying the national average rate for this tax to the inter-communal tax bases for council tax on second homes and other furnished premises not assigned to the main dwelling of the grouping applying article 1609 nonies C of the same code;

- the amount received by the grouping the previous year in respect of the share of the compensation allowance provided for in Article L. 5211-28-1 of the present code, excluding the amount corresponding to the compensation provided for in 2° bis of II of Article 1648 B of the General Tax Code as it stood prior to the aforementioned Finance Law for 2004.

b) The sum of the compensation allocations mentioned in 1 for all the communes that are members of the grouping.

3. For the calculation of the difference mentioned in 2, the bases used are the gross bases for the last year for which the results are known used as the basis for inter-communal taxation. If there are no inter-municipal tax bases within the territory of a municipality, the municipal tax bases are taken into account. The average national business property tax rate is that provided for in I. For groupings applying the tax system defined in article 1609 nonies C of the General Tax Code, the average national rate for council tax on secondary residences and other furnished premises not used as a main residence is that recorded for the last year for which the results are known and calculated on the basis of revenue collected by these groupings alone. The revenue used is the gross revenue for the last year for which the results are known. For the municipalities that are members of a grouping that applies article 1609 quinquies C of the same code, the revenues retained in a of 2 of this article only refer to those relating to its economic activity zone, the other revenues being taken into account in accordance with I.

4. The compensation allocations referred to in 1 and 2 of this II are those defined in V of Article 1609 nonies C of the General Tax Code, as well as in 3 and 4 of III of Article 1609 quinquies C of the same code.

5. 1 and 2 of this II do not apply to communes to which article 1609 nonies C and II of article 1609 quinquies C of the general tax code are applied for the first year by the grouping of which they are members.

III. - (Repealed).

IV. - The financial potential of a municipality is equal to its tax potential plus the amount received by the municipality the previous year in respect of the flat-rate allocation defined in article L. 2334-7 of the present code excluding the portion mentioned in 3° of I of the same article received in 2014 and indexed, from 2014, on the rate of change in the flat-rate allocation of each municipality the year preceding the distribution. It is reduced, where applicable, by the deduction from the proceeds of direct local taxes mentioned in the second sentence of the third paragraph of III of Article L. 2334-7 undergone the previous year as well as the reduction mentioned in article L. 2334-7-3 in respect of the previous year.

The extended resources indicator for a commune is equal to its financial potential plus the amounts received the previous year in respect of the urban solidarity and social cohesion grant or the rural solidarity grant and the national equalisation grant provided for in article L. 2334-13 of this code. It is increased, where applicable, by payments received from departmental or metropolitan funds pursuant to II de l'article 1648 A du code général des impôts.

V. - The tax potential per inhabitant, the financial potential per inhabitant and the extended resource indicator per inhabitant are equal, respectively, to the tax potential, the financial potential and the extended resource indicator of the commune divided by the number of inhabitants making up the population of this commune, as defined in article L. 2334-2.

VI. - By way of derogation, for the application of the present article, the financial potential of the communes that are members of the Greater Paris Metropolis is calculated according to the methods defined in article L. 5219-8 of the present code.