CHAPTER V : Tax revenue equalisation

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Article L3335-4

French General Code of Local AuthoritiesIn force

Updated 7 Nov 2023

I. - A solidarity fund is established for the départements of the Ile-de-France region. The resources of the fund are set at 60 million euros.

II. - For each department in the Ile-de-France region, a synthetic index of resources and charges is calculated each year based on the following ratios:

1° The ratio between the average per capita financial potential of the departments in the Ile-de-France region and the per capita financial potential of the department defined in article L. 3334-6. The population taken into account is that defined in article L. 3334-2;

2° Ratio between the average per capita income of the départements in the Ile-de-France region and the per capita income of the département. The income taken into account is the last known reference tax income;

3° Ratio between the proportion of total beneficiaries of the active solidarity income mentioned in article L. 262-1 of the code of social action and families in the total population of the department, and this same proportion recorded for all the departments of Ile-de-France;

4° Ratio between the proportion of total recipients of housing benefit, as defined in article L. 2334-17, in the total number of dwellings in the department and this same proportion recorded for all the departments in Ile-de-France.

The synthetic index of resources and charges is obtained by adding the ratios mentioned in 1°, 2°, 3° and 4°, weighting the first at 50%, the second at 25%, the third at 15% and the fourth at 10%. A median index is calculated for the départements in the Ile-de-France region.

III. - The fund is financed by deductions from the resources of the départements in the Ile-de-France region, as follows:

1° The departments of the Ile-de-France region whose synthetic index of resources and charges defined in II is less than 95% of the median index are contributors to the fund;

2° The levy, calculated in order to reach the amount set in I of this article each year, is distributed among the contributing departments according to the relative difference between 95% of the median index and the index of the contributing department, multiplied by the population of the department as defined in article L. 3334-2. This levy complies with the following conditions:

a) The levy may not exceed, for each département, half of the resources of the solidarity fund for the départements of the Ile-de-France region;

b) The sum of the levies made pursuant to this III and those borne by the départements of the Ile-de-France region pursuant to articles L. 3335-1 and L. 3335-2 in respect of the previous year may not exceed, for each department, 15.5% of the department's actual operating revenue recorded in the management account relating to the penultimate financial year;

3° The deduction is made from the twelfths provided for in Article L. 3332-1-1.

IV. - After deduction of an amount equal to the regularisations made the previous year, the resources of the fund are distributed among the départements of the Ile-de-France region as follows:

1° The departments of the Ile-de-France region whose synthetic index of resources and charges defined in II is greater than 95% of the median index shall benefit from an allocation from the fund;

2° The allocation accruing to each of the eligible departments of the Ile-de-France region is calculated on the basis of the relative difference between the index of the beneficiary department and 95% of the median index, multiplied by the population of the department as defined in Article L. 3334-2;

3° Payments are made monthly from the date of notification.

V. - 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.

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

Mariela Petrova

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Any time a strategic decision changes how the company is owned, governed or contractually bound — incorporation, fundraising, M&A, restructuring, shareholder agreements, or major commercial contracts. Earlier engagement always costs less than later remediation.

A notary (notaire) is a public officer who authenticates specific deeds (mainly real-estate transfers and certain family-law acts). A corporate lawyer (avocat) advises on strategy, negotiates and drafts company documents, and represents you in disputes. The two roles complement rather than overlap.

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Mariela Petrova

Mariela Petrova

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