French General Code of Local Authorities
In forceI. - Public establishments for inter-municipal cooperation with their own taxation belonging to the following categories receive, from the year in which they first receive the proceeds of their taxation, an allocation under the inter-municipality grant:
1° Urban communities and metropolises, including the Greater Paris metropolis and the Aix-Marseille-Provence metropolis as well as the Lyon metropolis;
2° Agglomeration communities;
3° Communities of communes applying the dispositions de l'article 1609 nonies C du code général des impôts;
4° Les communautés de communes ne faisant pas application des dispositions du même article 1609 nonies C.
II. - The resources of the inter-municipality grant mentioned in I of this article are taken from the development grant provided for in Article L. 2334-13 of this code.
From 2019, the total amount of the inter-municipality grant distributed each year is equal to the total amount received by the public establishments of inter-municipal cooperation with their own tax status the previous year, increased by €30 million. In 2019, the intercommunal grant will be increased by a further €7 million. This increase is financed by the reductions provided for in Article L. 2334-7-1.
III. - Public establishments of inter-municipal cooperation with their own tax status whose per capita allocation received the previous year is less than €5 benefit in the year of allocation, before application of the provisions provided for in IV, from a supplement equal to the difference between an allocation of €5 per capita, multiplied by the population of the municipalities that the establishment groups together on 1st January of the year of allocation, and the allocation received the previous year. Establishments whose per capita tax potential in the year of allocation is greater than twice the average per capita tax potential of establishments in the same category, as well as establishments that have already benefited from this supplement since 2019, do not benefit from this supplement.
In the event of a difference, for a public establishment of intercommunal cooperation with its own tax status, between the perimeter recorded at 1 January of the year of allocation and that existing at 1 January of the previous year, the per capita allocation received the previous year taken into account is obtained:
1° By calculating the share of the intercommunal grant received the previous year relating to each commune that was a member of a public establishment for intercommunal cooperation with its own tax status at 1 January of the previous year, by apportioning the amount of the grant in proportion to the population of the commune in the population of the establishment ;
2° Then by adding together the shares calculated in accordance with 1° of this III of each of the communes that this establishment groups together at 1 January of the year of apportionment as well as, where applicable, the inter-communal competence allocations received the previous year by communes belonging to this establishment at 1 January of the year of apportionment.
From 2023, the increase in the inter-municipality grant resulting from the calculation of these supplements is financed by a deduction from the amount of the inter-municipality grant.
IV. - The inter-municipality grant is distributed as follows:
1° This grant is distributed among the public establishments of inter-municipal cooperation with their own tax status, after deduction of the sums necessary for the application of the provisions provided for in 2° of this IV, at the rate of 30% for the basic grant and 70% for the equalisation grant.
Each public establishment for intercommunal cooperation with its own tax status receives:
a) A basic allocation, calculated on the basis of the population of the communes that the establishment groups together on 1 January of the year of allocation, weighted by the establishment's tax integration coefficient;
b) An equalisation allocation, calculated on the basis of the population of the communes that the establishment groups together on 1 January of the year of allocation, weighted by the establishment's tax integration coefficient, multiplied by the sum :
- the ratio between the average per capita fiscal potential of the establishments belonging to the same category and the per capita fiscal potential of the establishment;
- the ratio between the average per capita income of the establishments and the per capita income of the establishment. The population taken into account is the total population;
2°Public establishments of inter-municipal cooperation with their own tax status may not receive, from the third year of allocation of the grant in the same category, a per capita allocation of less than 95% of the per capita grant received the previous year.
A public establishment of inter-municipal cooperation with its own tax status which changes category, which is the result of a merger under the provisions of article L. 5211-41-3 or which follows on from one or more other public establishments for cooperation between municipalities with their own tax status receives, for the first two years of allocation of the grant in the new category or after the merger, an allocation per inhabitant at least equal to that received the previous year.
A public inter-municipal cooperation establishment with its own tax status created ex nihilo receives, in the first year, an allocation calculated under the conditions provided for in 1° of this IV and, in the second year, a per capita allocation at least equal to that received in the previous year.
Metropolises, urban communities and conurbation communities whose fiscal integration coefficient is greater than 0.35 receive a per capita allocation at least equal to that received the previous year.
Communities of communes whose fiscal integration coefficient is greater than 0.50 receive a per capita allocation at least equal to that received the previous year.
Public establishments of inter-municipal cooperation with their own tax status whose per capita tax potential is less than 60% of the average per capita tax potential of establishments belonging to the same category receive a per capita allocation at least equal to that received the previous year;
3° A public establishment of inter-municipal cooperation with its own tax status may not receive a per capita allocation greater than 110% of the amount received in respect of the previous year. This ceiling does not apply in 2019 to establishments that changed category on 1 January 2019 or to communities of communes created ex nihilo on 1 January 2017. In 2023, this ceiling does not apply to communities of communes with fewer than 20,001 inhabitants whose per capita tax potential is lower than the average per capita tax potential of communities of communes belonging to the same category and whose per capita allocation received the previous year is less than 50% of the average per capita allocation received by public establishments for intercommunal cooperation with their own tax status the previous year...;
4° In the event of a difference, for a public establishment of intercommunal cooperation with its own tax status, between the perimeter recorded at 1 January of the year of distribution and that existing at 1 January of the previous year, the per capita allocation received the previous year taken into account for the calculation of the guarantees provided for in 2° and the capping provided for in 3° is obtained:
a) By calculating the share of the inter-municipality allocation received the previous year relating to each municipality that was a member of a public establishment for inter-municipal cooperation with its own tax status at 1 January of the previous year, by distributing the amount of the allocation in proportion to the population of the municipality in the population of the establishment ;
b) Then by adding together the shares, calculated in accordance with a of this 4°, of each of the communes that this establishment groups together at 1 January of the year of apportionment as well as, where applicable, the inter-communal competence allocations received the previous year by communes belonging to this establishment at 1 January of the year of apportionment.
In 2019, the allocation to be taken into account in respect of the previous year is that calculated in application of III.
