Chapter IIb: Cotisation foncière des entreprises: minimum levy

I. - 1. Those liable for the business property tax are subject to a minimum tax established at the location of their main establishment; this tax is established from a base, the amount of which is set by the municipal council according to the following scale:

However, taxpayers with sales or revenue of €5,000 or less are exempt from the minimum assessment. The benefit of the exemption is subject to compliance with Commission Regulation (EU) No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid.

The amount of turnover or revenue to be taken into account is that, excluding tax, achieved during the reference period defined in Article 1467 A. Where the reference period does not correspond to a twelve-month period, the amount of turnover or revenue is reduced or increased, as the case may be, to twelve months.

Where a public establishment for inter-municipal cooperation, subject to article 1609 nonies C, has been set up, it sets, instead of the member communes, the amount of the minimum base within the limits set in the table annexed to the first paragraph.

When a public establishment for intercommunal cooperation applies I of article 1609 quinquies C, it sets, in place of the member municipalities, the amount of the minimum base applicable in the economic activity zone concerned, within the limits set in the table appended to the first paragraph.

The minimum base limits mentioned in the table annexed to the first paragraph, the amounts resulting from deliberations and those mentioned in 1a, in a and b of 2 and in 2a are, from the year following that in respect of which they apply for the first time, revalued each year in line with the forecast rate, associated with the Finance Bill for the year, of change in household consumer prices, excluding tobacco, for the same year.

1a. For municipalities and public establishments for inter-municipal cooperation within whose territory minimum base amounts apply for the three brackets of turnover or revenue, in application of 1 of this article or the third paragraph of I of article 1639 A bis in their wording in force on 31 December 2013, and which have not taken a new decision, the amount of the minimum base applicable is equal to that which was applied in respect of 2013 or, where applicable, to that which was set by a decision taken between 22 January and 1 October 2013 for application from 2014.

2. In the absence of a deliberation for one of the brackets of turnover or revenue mentioned in the table annexed to the first paragraph of 1, the amount of the minimum base that is applicable is equal:

a) For communes existing on 31 December 2012 and public establishments for inter-communal cooperation subject to Article 1609 nonies C or I of Article 1609 quinquies C on the same date: to the amount of the minimum base applicable on their territory in respect of 2012;

b) For new communes created as of 1 January 2013, for those attached to a public inter-communal cooperation establishment subject to Article 1609 nonies C or to the I of Article 1609 quinquies C as of the same date as well as for public establishments subject to one of these regimes for the first time as of this date following a creation, merger or change of tax regime:

- the year in which, for the first time, this operation produces its fiscal effects: at the amount applicable the previous year on the territory of each of the municipalities or each of the public establishments for inter-municipal cooperation concerned;

- subsequent years: at the average of the minimum bases applicable on their territory in the first year weighted by the number of taxpayers subject to the minimum assessment in respect of the same year.

2 bis. When the amount of the minimum base applicable to taxable persons whose turnover or revenue is included in one of the first three turnover or revenue brackets mentioned in the table annexed to the first paragraph of 1 is determined under the conditions defined in 1 bis, 2 or 3 and exceeds the upper limit of the minimum base applicable to the bracket to which they belong, it is reduced to this limit.

3. When, following a creation, a change of tax system or a merger, a public establishment of inter-municipal cooperation applies the system provided for in article 1609 nonies C or I of article 1609 quinquies C, the amount of the minimum base applicable in the year in which, for the first time, this operation produces its effects from a tax point of view is equal to that applicable the previous year on the territory of each of the communes or each of the public establishments of inter-municipal cooperation concerned.

The year following that in which this operation produces its fiscal effects for the first time, the public establishments for intercommunal cooperation which, by a deliberation taken under the conditions provided for in I of article 1639 A bis and in 1 of this I, set, for each of the brackets of turnover or revenue mentioned in the table annexed to the first paragraph of 1 or for one of them only, the amount of the minimum base may, by a deliberation taken under the same conditions, decide to apply, for the tranche of turnover or revenue concerned, different minimum bases depending on the territory of the pre-existing municipalities or public establishments for inter-municipal cooperation, for a maximum period of ten years.

The differences between, on the one hand, the minimum bases applied on the territory of the public inter-municipal cooperation establishment in the year during which the operation first produced its effects from a fiscal point of view and, on the other hand, the one that it has set are reduced by equal fractions over the period that it has chosen.

The convergence mechanism defined in the second and third paragraphs of 3 is not applicable when the ratio between the lowest minimum base applicable on the territory of the public establishment of inter-municipal cooperation and that which it has set is greater than 80%. This ratio is assessed separately for each of the turnover or revenue brackets mentioned in the table annexed to the first paragraph of 1.

4. The convergence mechanism provided for in 3 also applies:

a) In the event of the creation of a new commune;

b) In the event of the attachment of a commune to a public establishment for intercommunal cooperation applying the regime provided for in I of article 1609 quinquies C or article 1609 nonies C ;

c) Public establishments for inter-communal cooperation applying on 31 December 2012 the system provided for in I of article 1609 quinquies C or article 1609 nonies C, which have not deliberated to set a minimum base in application of 1 of this I and on whose territory the minimum bases of their member municipalities apply.

I bis. - In the Department of Mayotte:

1° The amounts mentioned in the first paragraph of 1 of I, with the exception of the amounts of €250,000, €100,000 and €10,000, are reduced by half;

2° In the absence of a deliberation and by exception to the provisions of 2 of I, the amount of the minimum base is equal to half of the first amount mentioned in 1 of I.

The amounts resulting from the application of 1° and 2° are rounded to the nearest euro, the fraction of a euro equal to 0.50 is counted as 1.

II. - When they have no premises or land:

1. Taxpayers domiciled pursuant to a domiciliation contract or other contractual provision are liable for the minimum assessment at the place where they are domiciled;

2. Non-sedentary taxpayers are liable for the minimum levy established at the place of the municipality where they elect domicile, within the meaning of article L. 264-1 of the code de l'action sociale et des familles, or, failing this, at the place of their main residence;

3. Taxpayers located abroad who carry out a rental or sales activity involving one or more properties located in France are liable for the minimum assessment at the location of the property with the highest property rental value on 1st January of the tax year;

4. Taxpayers who are domiciled for tax purposes at the place where they live are liable for the minimum assessment at this place.