In 2017, the phased abolition of the housing tax on main residences for 80 per cent of households was announced, prior to the full abolition of this tax. This measure entails a loss of tax revenue for local authorities and public inter-municipal cooperation bodies (EPCI). The 2020 Finance Act therefore provides for the transfer to local authorities of the departmental share of the tax on built property (TFPB) to local authorities and to allocate a share of VAT to EPCIs and departments, offsetting to the nearest euro the changes in tax revenue associated with these transfers. At the same time, the 2020 Finance Act also provides for a review, by 2026, of the rental values of residential properties used for the TFPB and the TH. Currently, these rental values are based on a valuation dating from 1970, and this revision could potentially lead to a significant reallocation of the tax burden between households, as well as an impact on equalisation funds.
Reallocation of local taxation and revision of the rental values of residential properties
Project Status
Completed
