French General Code of Local Authorities
In forceI. - The Fonds national de péréquation des ressources intercommunales et communales (National Fund for the Equalisation of Intercommunal and Communal Resources) is financed by a levy on the tax resources of intercommunal groupings and communes that do not belong to any tax grouping of their own in metropolitan France and the overseas departments with the exception of the Department of Mayotte, in accordance with the following procedures:
1° The following contribute to the fund:
a) Intercommunal groupings whose aggregate financial potential per inhabitant, as defined in Article L. 2336-2, is greater than 90% of the average aggregated financial potential per inhabitant;
b) Communes not belonging to any own tax grouping whose financial potential per inhabitant, with the exception of communes located in mono-communal maritime islands not required to integrate a departmental inter-communal cooperation scheme under V of Article L. 5210-1-1, as defined in the same Article L. 2336-2, is greater than 90% of the average aggregate financial potential per inhabitant;
2° The levy calculated in order to reach each year the amount provided for in II of Article L. 2336-1 is distributed between the inter-municipal groupings and the communes that do not belong to any grouping with their own tax status mentioned in 1° of this I on the basis of a synthetic index of resources and charges multiplied by the population of the inter-municipal grouping or the commune. For each inter-municipal grouping or isolated commune, this index is a function of:
a) The relative difference between the aggregate financial potential per inhabitant of the inter-municipal grouping or the financial potential per inhabitant of the isolated commune, on the one hand, and 90% of the average aggregate financial potential per inhabitant, on the other hand;
b) The relative difference between the income per inhabitant of the inter-municipal grouping or the income per inhabitant of the isolated commune, on the one hand, and the average income per inhabitant, on the other hand. The income taken into account is the last known reference tax income. The population taken into account is that resulting from the last census.
The synthetic index of resources and charges is obtained by adding the ratios defined in a and b of this 2° by weighting the first by 75% and the second by 25%;
3°The sum of the levies applied in application of 2° of this I and those borne by the communes in application of l'article L. 2531-13 in respect of the previous year may not exceed, for each intercommunal grouping or each municipality mentioned in 1° of this I, 14% of the revenue they received in respect of the resources mentioned in 1° to 7° of I of Article L. 2336-2.
II. - The levy calculated for each inter-municipal entity in accordance with 2° and 3° of I is divided between the public establishment for inter-municipal cooperation with its own tax status and its member municipalities on the basis of the tax integration coefficient defined in III of article L. 5211-29, then between the member communes on the basis of the per capita financial potential of these communes, referred to in IV of article L. 2334-4, and their population.
By way of derogation, the levy may be distributed as follows:
1° Either, by deliberation of the public establishment of inter-municipal cooperation taken within two months of its notification, by a two-thirds majority, between the public establishment of inter-municipal cooperation with its own tax status and its member communes, freely, without being able to have the effect of deviating by more than 30% from the allocation calculated in application of the first paragraph of this II, then between the member communes according to their population, the difference between the per capita income of these municipalities and the average per capita income of the public establishment of inter-municipal cooperation and the per capita fiscal or financial potential of these municipalities in relation to the average per capita municipal fiscal or financial potential in the territory of the public establishment of inter-municipal cooperation as well as, in addition, other criteria of resources or burdens that may be chosen by the council of the public establishment of inter-municipal cooperation. These methods may not have the effect of increasing the contribution of a member municipality by more than 30% compared to that calculated in application of the first paragraph of this II ;
2° Either by a unanimous decision of the deliberative body of the public establishment of inter-municipal cooperation with its own tax system, taken within two months of notification by the representative of the State in the department, or by a decision of the deliberative body of the public establishment of inter-municipal cooperation with its own tax system, taken by a majority of two-thirds of the votes cast, taken within two months of notification and approved by the municipal councils of the member municipalities. The municipal councils have a period of two months from notification of the deliberation of the deliberative body to decide. In the absence of a decision within this timeframe, they are deemed to have approved it.
The levy payable by the member municipalities of a public establishment for inter-municipal cooperation with its own tax system is reduced by the amounts levied the previous year in application of II and III of article L. 2531-13. The amounts corresponding to these reductions are paid by the public establishment of inter-municipal cooperation with its own tax status to which these communes belong.
III. - The first two hundred and fifty municipalities classified the previous year pursuant to 1° of article L. 2334-16 and the first thirty municipalities classified according to 2° of the same article L. 2334-16 are exempt from this levy. The same applies to the first two thousand five hundred municipalities classified according to the synthetic index provided for in article L. 2334-22-1. For communes that are members of a public establishment for inter-communal cooperation with their own tax status, the corresponding amounts are paid by the latter.
IV. - The individual levy calculated for each municipality and each public establishment for inter-municipal cooperation is paid from the twelfths, provided for in article L. 2332-2 and in II of Article 46 of Law No. 2005-1719 of 30 December 2005 on finances for 2006, of the local authority concerned.
