French General Tax Code
In forceI. - For the calculation of business property tax assessments for 2010, the municipalities and public establishments for inter-municipal cooperation with their own tax status vote a relay rate, under the conditions and within the limits laid down for the business tax rate by this code in its wording in force on 31 December 2009, with the exception of 4 of I of l'article 1636 B sexies.
Company property tax assessments for 2010 are levied for the benefit of the State's general budget. They are calculated by applying the deliberations relating to the exemptions and reductions provided for in I of 5.3.2 of article 2 of law no. 2009-1673 of 30 December 2009 of finance for 2010 and by applying the reference communal and inter-communal rates defined in 1 to 6 of I of article 1640 C.
The State will collect 3% of the amount of business property tax assessed for 2010. These sums are added to the amount of these taxes.
II. - 1. a) Notwithstanding the provisions of articles L. 2331-3, L. 3332-1, L. 4331-2, L. 5214-23, L. 5215-32 and L. 5216-8 du code général des collectivités territoriales et des articles 1379,1586,1599 bis, 1609 bis, 1609 quinquies C, 1609 nonies B and 1609 nonies C of this code, local authorities, with the exception of the Ile-de-France region, and public establishments for inter-municipal cooperation with their own tax system receive, in respect of 2010, instead of the proceeds of business tax, a relay compensation payment.
The amount of this bridging compensation is, for each local authority or public inter-municipal cooperation establishment with its own tax status, equal to the higher of the following two amounts:
- the business tax revenue that would have resulted for this local authority or public establishment from the application, in respect of 2010, of the provisions relating to this tax in their version in force on 31 December 2009. However, for the calculation of this product, on the one hand, the deliberations applicable in 2009 relating to the business tax bases are applied, on the other hand, the rate used is the business tax rate of the territorial authority or public establishment for the taxes in respect of 2009 within the limit of the rate voted for the taxes in respect of 2008 increased by 1%;
- the business tax product of the territorial authority or public establishment in respect of 2009.
For public establishments of inter-municipal cooperation applying article 1609 nonies C in 2009 and which merge on 1 January 2010, the amount of relay compensation is, at the request of the council of the community resulting from the merger, formulated by a deliberation taken before 1 March 2010, equal to the sum of the amounts of relay compensation of each of the public establishments of inter-municipal cooperation participating in the merger, established separately for each of these establishments.
b) Notwithstanding the provisions of article L. 4414-2 of the General Local Authorities Code and Article 1599 quinquies of this Code, the Ile-de-France region receives for 2010, instead of the additional business tax provided for in the second paragraph of I of Article 1599 quinquies, a relay compensation.
The amount of this bridging compensation is equal to the higher of the following two amounts:
- the product of this additional tax that would result from the application, in respect of 2010, of the provisions relating to this tax in their version in force on 31 December 2009. However, for the calculation of this income, on the one hand, the deliberations applicable in 2009 relating to the bases of this tax are applied, and on the other hand, the rate used is the rate of this additional tax voted by the regional council for the taxes in respect of 2009 within the limit of the rate voted for the taxes in respect of 2008 increased by 1%;
- the income from this additional tax in respect of 2009.
2. For each municipality or public establishment for inter-municipal cooperation with its own tax status, the relay compensation defined in 1 is increased by the product of the municipal or inter-municipal bases of business property tax for establishments located on the territory of this municipality or this establishment taxed for the benefit of the general budget of the State in accordance with the second paragraph of I by the difference, if positive, between the relay rate voted by this municipality or this public establishment in accordance with the first paragraph of the same I and the business tax rate voted by this municipality or this public establishment for taxation in respect of 2009, multiplied by a coefficient of 0.84.
3. For the application of 1 and 2:
a) When a public establishment for intercommunal cooperation applies article 1609 nonies C in 2010 and did not apply it in 2009, did not exist in 2009 or had a different perimeter in 2009 than in 2010:
- the proceeds of business tax for 2009 are understood to be the sum of the proceeds for 2009 of the municipalities that are members of the said establishment in 2010 and the proceeds for 2009, relating to the territory of these municipalities, of the public establishments for inter-municipal cooperation with their own tax status of which they were members in 2009;
- the rate for 2009 is understood to be the average of the municipal rates applicable in 2009 to each part of its territory, weighted by the size of the bases taxed for their benefit in respect of 2009. For the purposes of calculating this average, the municipal rates applicable in 2009 mean, for each part of the territory, the sum of the business tax rates of the municipality and of the public establishment for inter-municipal cooperation with its own tax status ;
b) Where a municipality was a member in 2009 of a public establishment for inter-municipal cooperation applying Article 1609 nonies C and is no longer a member in 2010 of such a public establishment, the business tax revenue for 2009 refers to the inter-municipal revenue for 2009 relating to its territory and the 2009 rate refers to the inter-municipal rate for 2009 applicable to its territory;
c) When a public establishment for inter-municipal cooperation applies article 1609 nonies C in 2010 and did not apply it in 2008, did not exist in 2008 or had a different perimeter in 2008 than in 2010, the rate for 2008 is the average of the municipal rates applicable in 2008 on each part of its territory, weighted by the size of the bases imposed on them for 2008. For the purposes of calculating this average, the municipal rates applicable in 2008 are taken to mean, for each part of the territory, the sum of the business tax rates of the municipality and the public establishment for inter-municipal cooperation with its own tax status;
d) Where a municipality was a member in 2008 of a public establishment for inter-municipal cooperation applying article 1609 nonies C and is no longer a member in 2010 of such a public establishment, the 2008 rate is taken to mean the inter-municipal business tax rate applicable in 2008 on its territory;
e) Subject to the provisions of f, public establishments for intercommunal cooperation with additional taxation created from 1st January 2010 may be allocated a fraction of the relay compensation of their member municipalities. This fraction is decided by joint decision of the deliberative body of the public body and the municipal councils voting under the majority conditions required for the creation of the public body for inter-municipal cooperation. The amount of the compensation relais received by each member commune is reduced by this fraction;
f) When a public establishment of intercommunal cooperation with additional taxation is the result of a merger taking effect for tax purposes in 2010, or had a different perimeter in 2009 than in 2010, the 2009 business tax product is understood to be the sum of the business tax products of the merged public establishments and the business tax rate for 2009 is understood to be the ratio between this product and the corresponding bases.
When a public institution for inter-municipal cooperation with additional taxation is the result of a merger with fiscal effect in 2009 or 2010, or had a different perimeter in 2008 than in 2010, the business tax rate for 2008 is the ratio between the inter-municipal business tax income for 2008 and the corresponding bases.
III. - The tax departments carry out the checks on the 2010 business tax bases that they would have carried out if the business tax had been paid in 2010. The bridging compensation paid in 2010 to the local authorities pursuant to II is subject to an update corresponding to the checks carried out until 30 June 2012.
IV. - For the application of 1 and 2 of II, the business tax bases of the municipalities and public establishments for inter-municipal cooperation are understood to include the bases previously capped in application of the articles 1648 A and 1648 AA of the General Tax Code as they stood on 31 December 2009.
