French General Tax Code
In forceI. - In the interval between two updates provided for in III, the rates defined in 2 of B of II of Article 1498 are updated by the tax authorities on the basis of changes in rents recorded in the declarations provided for in Article 1498 bis. These rates are updated each year under conditions set by decree in the Conseil d'Etat.
When these rents are insufficient in number or cannot, given their amount in relation to the amount of the average rent in the assessment sector, be retained, these rates are updated under the conditions set out in the second paragraph of IV or, for properties located within the territory of the Lyon metropolitan area, in the last paragraph of the same IV. These rates are published and notified under conditions set by decree in the Conseil d'Etat.
II. - During the third and fifth years following that of the general renewal of the municipal councils, the departmental rental value commission mentioned in article 1650 B may meet in order to modify the application of the location coefficients mentioned in 2 of B of II of article 1498 after receiving the opinion of the communal or inter-communal direct tax commissions respectively mentioned in articles 1650 et 1650 A. The commission's decisions are published and notified in accordance with the conditions laid down by decree in the Conseil d'Etat and are sent to the tax authorities before 31 December of the year preceding the year in which they are taken into account for the establishment of the tax bases.
III. - A.-The year following the general renewal of the municipal councils, an update is carried out consisting, under the conditions provided for in article 1504, of the delimitation of the assessment sectors mentioned in 1 of B of II of article 1498, the setting of the rates determined in accordance with 2 of the same B and the definition of the parcels to which a location coefficient mentioned in the same 2 applies.
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The results of this update are taken into account when establishing the tax bases for the following year.
This update is carried out:
1° Every twelve years, on the basis of rental data notified to the tax authorities pursuant to article 1498 bis. It is carried out on the basis of data corresponding to the situation on 1st January of the year preceding that of the update;
2° Every twelve years, six years after the update mentioned in 1° of this A, on the basis of data from a reporting campaign. This update also involves, where applicable, the creation, deletion, splitting or regrouping of sub-groups and categories of premises as provided for in the second paragraph of I of Article 1498.
In order to carry out the update provided for in 2° of this A, the owners of the properties assessed in accordance with II and, where applicable, III of article 1498 must submit, before 1st July of the year preceding that of the update, a declaration specifying the information relating to each of these properties on 1st January of that same year. The list of information required is laid down by order of the ministers responsible for the economy and the budget.
B.-For the application of A of this III, the delimitation of assessment sectors presenting a homogenous rental market and the preparation of rates on the basis of average rents recorded in each assessment sector per category of property, in accordance with the principles set by articles 1498 and 1504 and on the basis of the data mentioned in A of this III, are carried out under conditions determined by decree in the Conseil d'Etat.
IV. - The rental value of built properties assessed under the conditions provided for in II of article 1498 is updated each year by applying the rate per square metre, determined in accordance with I of this article, to the weighted surface area of the premises defined in C of II of article 1498.
The rental value of built properties assessed under the conditions provided for in III of article 1498 is updated, each year, by applying a coefficient equal to that of the change, at departmental level, in rents recorded in the declarations provided for in article 1498 bis for business premises falling into the categories that group together the largest number of premises and which, together, represent a total of more than half of the premises in the department.
The rental value of the built properties mentioned in the second paragraph of this IV located on the territory of the Lyon metropolitan area is updated by applying a coefficient equal to that of the change in rents recorded in the declarations provided for in article 1498 bis for business premises falling into the categories that group together the largest number of premises and which, together, represent a total of more than half of the premises in the Rhône department and the Lyon metropolitan area.
