French General Code of Local Authorities
In forceFrom 2004, public establishments of inter-municipal cooperation with their own tax status receive a compensation grant equal to the amounts due in respect of 2003 pursuant to I of D of article 44 of the Finance Act for 1999 (no. 98-1266 of 30 December 1998) and 2° bis of II of article 1648 B of the General Tax Code as it stood prior to the Finance Act for 2004 (no. 2003-1311 of 30 December 2003), indexed according to the rate mentioned in 3° of I of article L. 2334-7.
From 2012, the amounts previously received under I of D of Article 44 of the aforementioned Finance Act for 1999 may be reduced by an identical percentage for all public establishments for intercommunal cooperation with their own tax status, under the conditions set out in Article L. 2334-7-1.
Public establishments for inter-municipal cooperation subject for the first time as of 2004 to the provisions of article 1609 nonies C of the General Tax Code receive, in place of their member municipalities, the portion of the lump-sum allocation corresponding to the compensation previously received in application of I of D of article 44 of the aforementioned Finance Law for 1999. When one or more of their member municipalities was subject, in the year prior to the implementation of the provisions of article 1609 nonies C of the General Tax Code, to a levy on taxation in application of 2 of III of l'article 29 de la loi de finances pour 2003 (n° 2002-1575 du 30 décembre 2002), la dotation de compensation versée à l'établissement est minorée du montant de ce prélèvement, actualisé chaque année selon le taux mentionné par le 3° du I de l'article L. 2334-7. When one or more of their member municipalities was, the year prior to the implementation of the provisions of Article 1609 nonies C of the General Tax Code, in application of the last paragraph of II of Article L. 2334-7 of the present code, subject to a levy calculated in accordance with the procedures set out in 1.2.4.2 of Article 77 of Law No. 2009-1673 of 30 December 2009 on the finances for 2010, the compensation allowance paid to the establishment is reduced by the amount of this levy.
When, from 2005 onwards, the territory of a grouping of municipalities applying the provisions of article 1609 nonies C of the General Tax Code is modified, the compensation allowance due to this grouping is increased or reduced according to the amount of the business tax bases of the municipalities that join or leave this grouping, having been used to calculate the compensation provided for in I of D of article 44 of the Finance Act for 1999 (no. 98-1266 of 30 December 1998).
In the event of the withdrawal of communes, the grouping's compensation allowance is increased, where applicable, according to the share of the levy suffered by the grouping pursuant to 1 of III of Article 29 of the Finance Act for 2003 (no. 2002-1575 of 30 December 2002) which was calculated on the basis of the France Télécom business tax bases of the withdrawing communes.
In the event of the withdrawal of communes, the grouping's compensation allowance is increased, where applicable, according to the share of the levy suffered by the grouping in application of the last paragraph of II of L. 2334-7 of this code and calculated according to the procedures provided for in 1.2.4.2 of article 77 of law no. 2009-1673 of 30 December 2009 on finances for 2010.
