French General Code of Local Authorities
In forceThe fiscal potential of a département is determined by adding together the following amounts:
1° The fraction of the net proceeds of the value added tax provided for in C of V of Article 16 of Law no. 2019-1479 of 28 December 2019 on finance for 2020 collected by the département in the previous year;
2° The sum of the departmental proceeds collected in respect of the business value added contribution and the flat-rate taxes on network companies provided for in Article 1586 of the General Tax Code;
3° The sum of the positive or negative amounts resulting from the application of 1.2 and 2.2 of Article 78 of law no. 2009-1673 of 30 December 2009 on finance for 2010 collected or borne the previous year by the department;
4° The sum of the average revenue collected by the department for the last five known financial years in respect of the taxes provided for in the article 1594 A of the French General Tax Code and the income received by the department in the previous year in respect of the taxation provided for in 2° and 6° of Article 1001 of the General Tax Code. In 2012, the revenue taken into account in respect of the latter tax is that received by the State in 2010;
5° The amount received in 2014 in respect of the compensation provided for in I of D of Article 44 of the Finance Act for 1999 (no. 98-1266 of 30 December 1998) and indexed according to the rate of change in the department's flat-rate allocation in the year preceding the distribution ;
6° The difference between the product mentioned in 1° of this article, in its wording prior to Finance Act no. 2020-1721 of 29 December 2020 for 2021, as calculated for the allocation of the global operating grant in 2021, and the product mentioned in 1° of this article calculated for the allocation of the global operating grant in 2022.
The bases and revenue used are the gross bases and revenue from the last year for which the results are known, used as the basis for departmental taxation. The average national tax rate used is that recorded in the last year for which the results are known.
The financial potential of a département is equal to its tax potential plus the amounts received the previous year in respect of the compensation allowance provided for in Article L. 3334-7-1 and the flat-rate allowance provided for in Article L. 3334-3, excluding the amounts previously received by way of the compensation provided for in I of D of article 44 of the aforementioned 1999 Finance Act.
The per capita fiscal potential and the per capita financial potential are equal, respectively, to the department's fiscal potential and financial potential divided by the number of inhabitants making up the population of this department, as defined in article L. 3334-2.
