local taxes finance local authorities (municipalities, departments, regions ...). They serve to maintain community facilities, to pay for services provided to users, to pay certain employees. The two main taxes of local taxation is residence tax and property tax on buildings.
Who pays the property tax and property tax?
The housing tax: a taxpayer, tenant, occupier or owner as his principal residence free of payroll tax. Even if he lives abroad, a French expatriate who still has his apartment in France must pay. Some people with low incomes are eligible for total exemption from property tax (eg welfare recipients).
Property tax on buildings means any owner, whether or not he places, is liable for this tax. Individuals are exempt over 75 years and recipients of benefits for disabled adults tested.
How are local taxes calculated?
The residence tax is the product of the rental value register (see below, note) and the tax rate of local (municipality applies a rate, another department, the union and the common intercommunality yet another).
rental value register is set by the state: it is the annual rent that a landlord could get a room rented under normal conditions.
The tax rate is, meanwhile, voted and decided by municipalities, counties or regions based on the money they feel they need for their operation.
The property tax is the product of the reduced rental value register a reduction of 50% and the tax rate for each local authority or public establishment for intermunicipal cooperation.
Who gets the money?
is the state that collection, but those are the communities that receive revenue from local taxes. Example for the Ile-de-France. Local taxes account for nearly 28% of the overall budget of the region in 2006. The 28% added to other income in the region (State grants) will mainly finance the improvement of public transport, maintenance of schools and measures to promote vocational training.
The calculation of the rental value register, a puzzle?
registry rental value is the result of a complex calculation of the tax administration. If it generally corresponds to the annual rent that a landlord could get a room, other factors come into play. Thus, the base value is the price of the rental, plus patches depending on the level of comfort (bath or not, air conditioning, etc..), The housing situation in the town (Center / periphery, leafy or merchant), characteristics of the building (built in, easy access, sound effects). This calculation is the scientist gross rental value. To obtain the net rental value, we deduce that any relief the taxpayer can claim (allowance for dependents, for example).
