CHAPTER V : Tax revenue equalisation

I. - As from 2014, a solidarity fund for the departments is created. From 2015, this article applies to the Lyon metropolitan area.

The resources of this fund are allocated to the départements as compensation for exceptional revaluations of the flat-rate amount of the allowance mentioned in articles L. 262-2 and L. 262-3 of the Code de l'action sociale et des familles, resulting from decrees no. 2013-793 of 30 August 2013, no. 2014-1127 of 3 October 2014, no. 2015-1231 of 6 October 2015, no. 2016-1276 of 29 September 2016 and no. 2017-739 of 4 May 2017 revaluing the flat-rate amount of the revenu de solidarité active.

II. - This fund is supplied by a levy equal to 0.35% of the amount of the base of the land registration tax and registration fees collected by the départements, in the year preceding that of the allocation, pursuant to articles 682 and 683 of the General Tax Code.

For each department, the sum of the levies made pursuant to this article and IV of Article L. 3335-2 of this code may not exceed 12% of the revenue from transfer duties for valuable consideration collected by the département in the year preceding that of the allocation.

The deduction defined in the first two paragraphs of this II is made from the twelfths provided for in Article L. 3332-1-1.

III. - After deduction of an amount equal to the adjustments made in the previous year, the fund's resources are distributed among the départements as follows:

1. For each department, the balance is calculated between:

a) The expenditure incurred by the department, during the penultimate year, in respect of the active solidarity income, pursuant to Article L. 262-24 du code de l'action sociale et des familles, de l'allocation personnalisée pour l'autonomie mentionnée à l'article L. 232-1 of the same code and the compensation benefit mentioned in article L. 245-1 of the said code;

b) The sum of the amounts of compensation due to the department for the active solidarity income, during the year of distribution, pursuant to article 59 of the Finance Act for 2004 (no. 2003-1311 of 30 December 2003) and article 51 of Finance Act no. 2008-1425 of 27 December 2008 for 2009, of the amounts of compensation paid to the département, during the previous year, in respect of l'article L. 3334-16-2 of this code, during the penultimate year, under the personalised autonomy allowance pursuant to articles L. 14-10-5 and L. 14-10-6 of the code de l'action sociale et des familles and in respect of the compensation benefit pursuant to articles L. 14-10-5 and L. 14-10-7 of the same code as well as the allocation paid to the département pursuant to article L. 3334-16-3 of this code.

The balance per inhabitant is equal to the balance divided by the population of the department calculated in application of article L. 3334-2 of this code.

2. The resources of the fund are divided into two fractions:

a) The first fraction, the amount of which represents 30% of the resources defined in II of this article, benefits the départements whose per capita tax potential as defined in article L. 3334-6 is less than the average per capita fiscal potential of all the départements or whose per capita income is less than 1.2 times the average per capita income of all the départements. This fraction is distributed among the eligible départements on the basis of the squared ratio between the per capita balance of the département as defined in 1 of this III and the per capita balance recorded for all départements;

b) The second fraction, the amount of which represents 70% of the resources defined in II of this article, benefits the first half of the départements ranked in descending order of their per capita balance as defined in 1 of this III and eligible for the fraction provided for in a of this 2. This fraction is distributed among the eligible départements on the basis of population as defined in Article L. 3334-2 and the relative difference between the per capita balance defined in 1 of this III and the median per capita balance.

3. Departments whose per capita amount of transfer duties collected in the previous year is greater than 1.4 times the per capita amount for all departments are not eligible for an allocation from the fund. Departments eligible for the first fraction or the second fraction and whose per capita amount of transfer duties is greater than 1.1 times the average per capita amount of duties collected by all departments are subject to a 50% reduction in their allocation from the fund. For the calculation of the per capita amount of transfer duties for valuable consideration, the population to be taken into account is that calculated in application of article L. 3334-2.

4. For the application of this article, the tax potential used is increased or, where applicable, reduced by a correction fraction equal for each département to the difference between the following two terms:

a) The sum of the product determined by applying to the departmental bases of property tax on built-up properties, property tax on non-built-up properties and council tax the average national tax rate for each of these taxes in respect of 2010 and the product determined by applying to the departmental bases of business tax the average national tax rate for this tax in respect of 2009 ;

b) The sum of the proceeds determined by applying to the departmental bases of property tax on built-up properties the national average rate for this tax in respect of 2011, the proceeds received in 2011 by the department in respect of the business value added levy and the flat-rate taxes on network companies provided for in Article 1586 of the General Tax Code and the income received in 2011 by the department in respect of the taxation provided for in 2° and 6° of article 1001 of the same code and the positive or negative amounts resulting from the application of 1.2 and 2.2 of Article 78 of Law no. 2009-1673 of 30 December 2009 on finance for 2010 received or borne by the department in 2011.

For the calculation of per capita tax potential, the population to be taken into account is that calculated pursuant to Article L. 3334-2 of this code.

5. For the application of this article, unless otherwise stated, the population to be taken into account is that defined in the first paragraph of article L. 3334-2.

IV. - A Conseil d'Etat decree lays down the terms and conditions for the application of this article.