French General Code of Local Authorities
In forceI. - After deduction of an amount equal to the adjustments made the previous year and the share provided for in article L. 2336-4, the resources of the Fonds national de péréquation des ressources intercommunales et communales (national fund for the equalisation of intercommunal and municipal resources) are distributed among the municipalities and public establishments with their own tax status in metropolitan France according to the following procedures:
1° Benefiting from an allocation under the fund:
a) 60% of inter-municipal groupings ranked in descending order of a synthetic index of resources and charges;
b) Communes not belonging to any public establishment of inter-municipal cooperation with their own tax status whose synthetic index of resources and charges is higher than the median index calculated for inter-municipal groupings and communes not belonging to any public establishment of inter-municipal cooperation with their own tax status ;
2° For each inter-municipal grouping and each commune that does not belong to any public inter-municipal cooperation establishment with its own tax status, the synthetic index of resources and charges mentioned in 1° of this I is a function of:
a) The ratio between the average aggregate financial potential per inhabitant and the aggregate financial potential per inhabitant of the inter-municipal grouping or the financial potential per inhabitant of the commune not belonging to any public inter-municipal cooperation establishment with its own tax status defined in the same article L. 2336-2;
b) The ratio between the average per capita income of local authorities in mainland France and the per capita income of the inter-municipal grouping or of the commune not belonging to a public establishment for inter-municipal cooperation for its own tax purposes;
c) And the ratio between the tax effort of the inter-municipal grouping or of the commune not belonging to a public establishment for inter-municipal cooperation for its own tax purposes and the average tax effort.
The income taken into account is the last known reference tax income. The population taken into account is that resulting from the latest population census.
The synthetic index of resources and charges is obtained by adding together the ratios defined in a, b and c by weighting the first by 20%, the second by 60% and the third by 20%;
3°The allocation due to each inter-municipal grouping and each commune not belonging to any public inter-municipal cooperation establishment with its own tax status mentioned in 1° of this I is calculated as a function of the product of its population, as defined in article L. 2334-2, by its synthetic index defined in 2° of this I;
4° Repealed.
II. - The allocation due to each inter-municipal entity is divided between the public establishment for inter-municipal cooperation with its own tax status and its member municipalities according to the tax integration coefficient defined in III of article L. 5211-29, then between the member communes, with the exception of those whose per capita financial potential is greater than twice the average per capita financial potential of the communes of the inter-municipal grouping, according to the insufficiency of the per capita financial potential of these communes, mentioned in IV of article L. 2334-4, and their population.
By way of derogation, the allocation may be distributed as follows:
1° Either, by deliberation of the public establishment of inter-municipal cooperation with its own tax status taken within two months of its notification, by a two-thirds majority, between the public establishment of inter-municipal cooperation with its own tax status and its member municipalities, freely, without being able to have the effect of deviating by more than 30% from the allocation calculated in application of the first paragraph of this II, and then between the member municipalities according to their population, the difference between the per capita income of these municipalities and the average per capita income of the public establishment of inter-municipal cooperation with its own tax system and the insufficiency of the fiscal or financial potential per capita of these municipalities in relation to the average municipal fiscal or financial potential per capita on the territory of the public establishment of inter-municipal cooperation with its own tax system as well as, in addition, other criteria of resources or burdens that may be chosen by the council of the public establishment of inter-municipal cooperation with its own tax system. These methods may not have the effect of reducing a member municipality's allocation by more than 30% compared to that calculated in application of the first paragraph of this II ;
2° Either by a unanimous decision of the deliberative body of the public establishment of inter-municipal cooperation with its own tax status, taken within two months of notification by the representative of the State in the department, or by a decision of the deliberative body of the public establishment of inter-municipal cooperation with its own tax status, taken by a majority of two-thirds of the votes cast, taken within two months of notification and approved by the municipal councils of the member municipalities. The municipal councils have a period of two months from notification of the deliberation of the deliberative body to decide. In the absence of a decision within this period, they are deemed to have approved it.
III. - Repealed.
