French General Tax Code
In forceI. - The rental value of premises allocated to residential use or used for home-based salaried activity is determined by comparison with that of reference premises chosen, in the municipality, for each type and category of premises.
II. - The rental value of the reference premises is determined on the basis of a rate set, by commune or commune sector, for each type and category of premises, on the basis of the rent for premises rented freely under normal price conditions and in such a way as to ensure the uniformity of valuations within the commune and from commune to commune.
The rate is applied to the weighted surface area of the reference premises, determined by assigning to the actual surface area corrective factors set by decree and intended to take into account the nature of the different parts of the premises, as well as its location, size, condition and equipment.
II bis. - In Mayotte, the rental value determined pursuant to II is reduced by 60%.
III. - 1. For the assessment of property tax on built-up properties, the rental value of premises rented on 1st January 1974 under the rent regulation system established by law no. 48-1360 of 1 September 1948 as amended, is the lower of the following two figures:
Either the rental value determined under the conditions provided for in I;
Or the actual rent on 1st January 1970 affected by three-yearly coefficients corresponding to rent increases since that date, without taking into account increases for insufficient occupancy or for professional use. The periods used to calculate and apply these coefficients are the same as those used for updates. These coefficients are set by decree in the Conseil d'Etat.
The coefficients set for the years 1979 to 1981 remain applicable until the next update of the property rental values of built-up properties.
However, if this rent is significantly lower than the rental prices generally observed for the premises in question, the property tax base is assessed by comparison with that pertaining to these premises.
2. When a premises ceases to be subject to the rent regulations established by the aforementioned law, the rental value is determined under the conditions provided for in I, with effect from 1st January of the following year.
