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FRENCH LOCAL TAXES WEIGHT

( © Created by Philippe IMBERT – Atelier des taxes locales )

 

 

The amounts at stake in terms of local taxes are considerable, both for the owners or occupants taxpayers who pay the taxes and for local communities that receive them. After considering the weight of French local taxes, you will find in the present site the various policies of some “Communes”, which results in a more or less important addition for taxpayers.

The comparison of the amount of local taxes in 2007, 2003 and 2002 as well as the comparison of the amount of those taxes with the amount of other taxes are revealing.

 

 

Weight of the four local taxes in 2007 (in billion euros), from the products voted

 

 

Municipalities and groups

Counties

 Regions

 TOTAL

  Local direct tax

 

39,25

 

 

19,02

 

 

4,62

 

 

62,89

 

Evolution 2007/2002

+ 21,29%

+ 36,25 %

+ 54 %

+ 27,5 %

Real property tax on developed land

12,16

5,78

1,68

19,62

Real property tax on undeveloped land

  0,77

0,05

0,01

  0,83

Business tax

16,45

8,43

2,92

 27,79

Residence tax

  9,87

4,77

0,00

14,64

 

 

 

Weight of the four local taxes in 2003 (in billion euros), from the products voted

 

 

Municipalities and groups

 Counties

 Regions

 TOTAL

  Local direct tax

 

33,49

 

 

14,77

 

 

3,05

 

 

51,31

 

Evolution 2003/2002

+3.5%

+ 5.9%

+ 1.6%

 + 4.0%

Real property tax on developed land

10,20

4,45

1,11

 15,76

Real property tax on undeveloped land

 0,85

0,04

 0,01

   0,90

Business tax

14,19

6,59

1,93

  22,71

Residence tax

 8,25

3,69

0,00

 11.94

 

 

 

Weight of the four local taxes in 2002 (in billion euros), from the products voted

 

 

 Municipalities and groups

 Counties

Regions

 TOTAL

 

  Local Direct tax

 

32,36

13,96

3,00

 49,32

Real property tax on developed land

9,68

4,14

1,07

14,89

Real property tax on undeveloped land

0,82

0,04

0,01

   0,87

Business tax

14,05

 6,33

1,93

22,30

Residence tax

7,81

3,49

0,00

11,40

 

 

 

  Weight of the four direct local taxes compared with weight of the other taxes

 

To better appreciate the weight of direct local taxation, we draw a parallel between its amounts and the amount generated by the other taxes paid in France.

 

In 2007, here is the result of the comparison :

 

                                - Corporate Tax :                      50,84 billions Euros

                                - Income tax :                          50,03 billions Euros

                                - VAT :                                  131,51 billions Euros

                                           - Local taxes :                         62,89 billions Euros

 

 

In 2003, here is the result of the comparison :

 

                                - Corporate Tax :                      34.60 billions Euros

                                - Income tax :                          53.10 billions Euros

                                - VAT :                                  109.80 billions Euros

                                           - Local taxes :                         51.31 billions Euros

 

 

 

Estimated evolution in French local taxation

 

 

The continual increase in the local taxes and the parallel decline of the income tax have transformed local taxes in the second amount of taxes paid by French people.

The will of the French government to decentralize is going  together with a transfer of some powers from the state to local entities. As the communes, regions and departments (counties) receive new missions without all the money needed to face these new missions, this will oblige them to increase their resources and, thus, the local taxes they receive.

Although the weight of regions and departments (counties) in local taxation is currently much lower than the one of the “Communes”, a risk exist that this weight would increase in the years to come.