French General Tax Code
In forceI. - The communes that are members of a public establishment for inter-communal cooperation subject to article 1609 nonies C vote on the rate of council tax on second homes and other furnished premises not assigned to the principal dwelling and of property taxes in accordance with the provisions applicable to communes.
II. - Public establishments for inter-communal cooperation applying article 1609 nonies C or I or II of article 1609 quinquies C vote the rate of the business property tax within the limits defined in b of 1, 2, 3 and 5 of I of article 1636 B sexies and in l'article 1636 B septies.
However, the obligation to reduce the rate of business property tax in a proportion at least equal to either the reduction in the rate of property tax on built-up properties or that of the weighted average rate of property taxes, or to the greater of these reductions when these two rates are falling, provided for in b of 1 of I of Article 1636 B sexies, does not apply.
For the application of b of 1, 2, 3 and 5 of I of Article 1636 B sexies:
1° The rate of property tax on built properties is equal to the average rate of this tax recorded in all the member municipalities of the public establishment for inter-municipal cooperation. For public establishments of inter-municipal cooperation that apply the provisions of II of article 1609 nonies C, the weighted average rate takes into account the revenue collected by the public establishment of inter-municipal cooperation;
2° The weighted average rate of property taxes is equal to the sum of the average rates recorded for each of these taxes in all the communes that are members of the public establishment of inter-municipal cooperation, weighted by the relative size of the bases of these two taxes for the year referred to in 3° ; however, for the application of 3 of I of article 1636 B sexies, for the calculation of the weighted average rates recorded for each of these taxes, no account is taken of rates lower than three quarters of the weighted average rate of the municipalities that are members of the grouping recorded for each tax the previous year. For public establishments of inter-municipal cooperation that apply the provisions of II of article 1609 nonies C, the weighted average rate takes into account the revenue collected by the public establishment of inter-municipal cooperation;
3°The variation in the rates defined in 1° and 2° is that recorded in the year preceding that in respect of which the public establishment of inter-municipal cooperation votes its rate of business property tax or that applicable in the economic activity zone.
Where the rates defined in 1° and 2° have not varied in the year preceding that in respect of which the public establishment of inter-communal cooperation votes its business property tax rate or that applicable in the economic activity zone, the variation taken into account is that recorded in respect of the antepenultimate year.
III. - For the application of 3 of I of article 1636 B sexies, the business property tax rate to be taken into account corresponds to the average national rate recorded for this tax the previous year for the communes and their public establishments for inter-communal cooperation.
IV. - For the public establishments of intercommunal cooperation referred to in II, the difference noted in respect of one year between the maximum rate of business property tax resulting from the provisions of the second paragraph of b of 1 of I of Article 1636 B sexies and the rate of business property tax voted in accordance with these same provisions may be, subject to the provisions of Article 1636 B septies, added, partially or totally, to the rate of business property tax voted by the public establishment of intercommunal cooperation in respect of one of the three following years.
The increase in the business property tax rate under the conditions referred to in the first paragraph is not applicable in the year in respect of which the public establishment for intercommunal cooperation applies the provisions of 3 of I of Article 1636 B sexies, the second paragraph or the last paragraph of II.
Decisions relating to rates transmitted to the tax departments under the conditions provided for in I of article 1639 A must indicate the amount to be carried forward in accordance with the first paragraph as well as the terms under which the rate for the year is increased under the conditions provided for in the said paragraph.
V. - (Expired)
VI. - (Repealed)
VII. - For the application of II to the Greater Paris metropolitan area:
1° The reference to the rate of property tax on built properties is replaced by the reference to the average rate of this tax recorded in all of the communes located within the perimeter of the Greater Paris metropolitan area;
2° The reference to the weighted average rate of property taxes is replaced by the reference to the sum of the average rates recorded for each of these taxes in all the communes located within the perimeter of the Greater Paris metropolitan area, weighted by the relative size of the bases of these two taxes for the year preceding that for which the council of the Greater Paris metropolitan area votes on its business property tax rate; however, for the application of 3 of I of the same Article 1636 B sexies, for the calculation of the weighted average rates recorded for each of these taxes, no account is taken of rates lower than three quarters of the weighted average rate of the communes recorded for each tax the previous year.
