CHAPTER IV : Financial and tax provisions

The allocation is made by the Regional Council under the conditions set out below:

A. - Part of the proceeds of the tax is allocated to the regional budget. It comprises:

1° An amount equal to 10% of the total proceeds, intended for the financing of investment operations of regional interest;

2° An allocation intended:

- for the development of the national road network and forest tracks, without prejudice to the allocation of State credits to these operations. When the national network has been transferred to the department, the allocation is allocated to it in addition to the sums mentioned in B of this article;

- for the development of public passenger transport.

When the budget of a region is subject to the recovery measures mentioned in article L. 1612-14, a fraction of this allocation may be allocated, by decision of the Regional Council, up to a limit of 50%, to expenditure contributing to the restoration of a balanced budget.

B. - Part of the proceeds of the tax is allocated to the department's budget. It includes:

1° The sums required to repay loans taken out by the department to finance road works prior to 3 August 1984, the date of publication of the loi n° 84-747 du 2 août 1984 relative aux compétences des régions de Guadeloupe, de Guyane, de Martinique, de Mayotte et de la Réunion ;

2° Une dotation consacrée :

- to capital expenditure relating to the roads for which it is responsible;

- to the operating expenditure of the departments responsible for the construction and maintenance of roads in the region, without prejudice to operating expenditure assumed by other local authorities;

- to transport infrastructure and the development of public passenger transport.

- to capital expenditure of departmental interest other than the above within the limit of 10% of the amount of the allocation.

C. - Part of the proceeds of the tax is distributed among the communes which devote it:

- to the roads for which they are responsible;

- to the development of public passenger transport;

- to capital expenditure of communal interest other than the foregoing up to a limit of 10% of the amount of the allocation.

D. - In the departments of Guadeloupe, Mayotte and La Réunion, part of the proceeds of the tax is allocated to the budgets of municipalities with more than 50,000 inhabitants and public establishments for inter-municipal cooperation where the population of all the municipalities that are members of the establishment exceeds 50,000 inhabitants, which have set up a public urban passenger transport service or approved a mobility plan. It is used to finance the investment and operating costs of urban public transport and other public transport services which, although not entirely within the territorial jurisdiction of the mobility organising authority, serve the conurbation under a contract signed with the authority responsible for organising urban transport. It may also be allocated to aid for the modernisation of the urban public passenger transport business.

The amount is equal to 3% of the total revenue. It is distributed among the eligible municipalities and public establishments in proportion to their population.