French General Tax Code
In forceI. - Municipalities may, by deliberation of the municipal council, institute a flat-rate tax on the transfer for valuable consideration of bare land that has been made constructible due to its classification by a local town planning plan or by a town planning document in lieu thereof in an urban area or in an urban development area open to urbanisation or by a local map in a constructible area.
Where a public establishment for inter-municipal cooperation is competent to draw up the local town planning documents mentioned in the first paragraph, it may institute and collect this flat-rate tax, in place of and with the agreement of all the communes it groups together.The public establishment for inter-municipal cooperation may decide to pay back part of the amount of the tax to the member communes.
II. - The tax applies to sales made by individuals and companies and groupings subject to income tax on the capital gain under the conditions set out in article 150 U, and by taxpayers who are not fiscally domiciled in France subject to income tax, subject to the levy, under the conditions provided for in article 244 bis A.
It does not apply:
a. to disposals referred to in 3° to 8° of II of article 150 U;
b. to disposals of land that has been classified as building land for more than eighteen years;
c. when the sale price of the land, defined in article 150 VA, is less than the acquisition price, actually paid by the transferor and as stipulated in the deed of transfer, increased by an amount equal to 200% of this price.
III. - The tax is based on an amount equal to the sale price of the land defined in article 150 VA less the purchase price stipulated in the deeds, updated according to the latest consumer price index excluding tobacco published by the Institut national de la statistique et des études économiques. In the absence of reference elements, the tax is based on two-thirds of the transfer price defined in the same article.
The tax is equal to 10% of this amount. It is payable on the first transfer for consideration of the land after it has been classified as building land. It is payable by the seller.
IV. - A declaration, in accordance with a model drawn up by the administration, records the information used to calculate the tax. It is filed under the conditions provided for in 1° and 4° of I and II of article 150 VG.
Where the transfer is exempt pursuant to a or b of II, no declaration need be filed.The transfer deed subject to the merged formality or presented for registration specifies, on pain of refusal of filing or of the registration formality, the nature and basis of this exemption or absence of taxation. The provisions of the second and third paragraphs of III of article 150 VG are applicable.
V. - The tax is paid when the declaration provided for in IV is filed. The provisions of I and II of article 150 VF, of the second paragraph of I and of II and III of article 150 VH and IV of article 244 bis A are applicable.
VI. - The decision provided for in I applies to disposals made from the first day of the third month following the date on which this decision is made. The tax authorities must be notified of the decision no later than the first day of the second month following the date on which it was made. Failing this, the tax is not due.
