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In our previous post (“taxe foncière” and “taxe d’habitation” calculation in 41 cities”) we commented the “Observatoire-SFL Forum” survey for 2013. In a nutshell, the local property taxes increase only by 1.95% between 2012 and 2013 in the 41 French main cities. This moderate increase was probably due to the next 2014 town hall elections (“élections municipales” in plain French).

However, UNPI ** has just released its annual survey of the “taxe foncière” (the data excludes the “taxe d’habitation”). The survey investigates thoroughly the tax increase for the entire 36 000 cities and villages in France (“communes”) over the 2007-2012 period. The UNPI also releases the 2012 tax rate and tax increase over 5 years in every  French cities and villages (see link at the bottom of the article). As a quick reminder, the tax foncière is calculated by multiplying the “rental value” -after deducting a 50% rebate- by the tax rate of each of the following local councils: “commune” (city or village where the property is located), group of “communes”, and “départements” (France is divided into approximately 100 “départements”).

The UNPI reports that “taxe foncière” increased by 21.17% on average over the 5 years period. This is more than twice the inflation rate (8.18% according to “INSEE” the national statistical office). Over the same market rental value increased by 8.23% and the minimum wage -“SMIC”- by 11.37%. The 21% “taxe fonciere” increase is the conjunction of two different factors:

  • the annual increase of the rental value, decided every year by the French state. This increase is due to reflect approximately the general inflation rate, over the five years period it amounts to 9.43%.
  • the average increase of the tax rate for the three different local councils by 10.70% over the 5 years period.

The tax share from the cities and villages councils has been more restrained (average increase by 18.6% including the rental value) than the “départements” (average increase by 24%). Again, elections of the “communes” councils planned for next year might explain that the more cautious tax rise. Additionally, the tax fonciere increase was limited to 2.2% on average in 2013, at least within the town with more than 100 000 people (source: “Observatoire SFL-forum”).

In 2012 the French average tax rate for the “taxe foncière” reached 36.4%. It was higher for the “départements” share (19.5%) than the “communes” + group of “communes” rates (16.9%). There seems to be an incredible range of tax rate in France, from the highest 98.8% in Fontaines-de-Sault in Aude “département”) to the lowest 9.98% in Neuilly sur Seine – a wealthy city in the immediate vicinity of Paris. These tax rates add up the 3 rates for the “commune”, “group of communes” and “départements”.

However, we should put into perspective the exceptional range of tax rates. Let us remind that the tax rate is applied to the buildings’ rental value. Rental values were set up locally (in the early 1970ies) based on each homes’ characteristics and its location. Therefore rental values are significantly lower in Fontaines-de-Sault  and landlords do not pay 10 times the “taxe foncière” paid in Neuilly… As mentionned by the “Direction Générale des Finances Publiques” “the départments of Ile-de-France (Paris and surroundings) , especially Paris and Hauts-de-Seine, stand out with very high rental values and low tax rates (all 3 rates included), leading to relatively high tax contributions. In contrast, the Gers and Aude offset very weak rental value by very high tax rates, of the order of 80% ” Nevertheless. ” all in all, the rates effect (all 3 rates included) takes preeminence over the “rental value” impact, the “départments”where the average tax contribution is the highest often have tax rates higher than the national average (excepting the départments of Ile-de-France)”.

UNPI: Union Nationale de la propriété immobilière

http://www.unpi.org/

Press release and tax fonciere survey:
http://www.unpi.org/Donnees_Client/Doc/Produit/664321.pdf

http://www.unpi.org/Donnees_Client/Doc/Produit/664323.pdf

Access to tax rate and tax increase over 2007-2012 for the 36 000 “communes” in France. You click first on the “département” where your property is located. Then you access to a pdf file with the “communes” list in alphabetical order. The first column (after the column with the “commune” name) gives the 2012 tax rate of the “taxe foncière” for each “commune” (including the “département” and “group of communes” tax rate). The next column gives the tax increase over 2007-2012 (excluding the “TEOM” or “taxe sur l’enlèvement des ordures ménagères” which is collected at the same time as the “taxe foncière). Then the last column on the right gives the tax increase over 2007-2012 including the TEOM:

http://www.unpi.org/docunpi/otf2013/index.htm