French General Code of Local Authorities
In forceI.-Urban communities, metropolises and the Lyon metropolis are required to introduce a community solidarity grant for the benefit of their member municipalities, with the aim of reducing the disparities in resources and costs between these municipalities. The amount of the community solidarity grant is freely determined by the community council by a majority of two-thirds of the votes cast. The introduction of a community solidarity grant is optional for communities of communes and conurbation communities. When an economic activity zone is located in whole or in part on the territory of a public inter-municipal cooperation establishment with its own tax authority, the latter may extend the payment of the community solidarity grant to public inter-municipal cooperation establishments with their own tax authority constituting a group without territorial discontinuity and bordering on its territory.
II.
II - Once established, the community solidarity grant is distributed freely by the Community Council according to criteria that take into account the majority of:
2° The inadequacy of the financial potential or tax potential per inhabitant of the municipality in relation to the average financial potential or tax potential per inhabitant in the territory of the public inter-municipal cooperation body with its own tax system or the Lyon metropolitan area;
These two criteria are weighted in the same way as the other two.
These two criteria are weighted according to the share of the local population in the total population of the public entity for inter-municipal cooperation with its own tax authority or of the Lyon metropolitan area. They must account for at least 35% of the distribution of the total amount of the community solidarity grant between the communes. Additional criteria may be chosen by the Community Council.
III.
III -When a public establishment for inter-municipal cooperation subject to the tax provisions of article 1609 nonies C of the General Tax Code is a signatory to a city contract as defined in article 6 of law no. 2014-173 of 21 February 2014 on programming for cities and urban cohesion, it must, by deliberation, adopt, in consultation with its member municipalities, a financial and tax pact aimed at reducing the disparities in charges and revenues between the latter. This pact takes into account efforts to pool revenues and costs already undertaken or planned in connection with the transfer of competencies, rules for the development of compensation allocations, community policies pursued by means of assistance funds or the community solidarity grant, as well as the criteria adopted by the deliberative body of the public establishment of inter-municipal cooperation with its own tax system to distribute, where applicable, the levies or repayments under the National Fund for the Equalisation of Inter-municipal and Communal Resources.
If a financial and fiscal pact has not been adopted at the latest one year after the entry into force of the city contract, the public establishment for inter-communal cooperation with its own tax system subject to the tax provisions of article 1609 nonies C of the General Tax Code or the Lyon metropolitan area is obliged to institute, for the benefit of the municipalities concerned by the measures provided for in this city contract, and for as long as no financial and fiscal pact has been adopted, a community solidarity grant, the amount of which is at least equal to 50% of the difference between the proceeds of the taxes mentioned in I and in 1 and 2 of I bis of the same article 1609 nonies C and the fraction of the net proceeds of the value added tax mentioned in XXIV of article 55 of law no. 2022-1726 of 30 December 2022 of the Finance Act for 2023 in respect of the year of payment of the allocation and the proceeds of these same taxes and of the fraction of the net proceeds of the value added tax referred to in XXIV of Article 55 of Act No. 2022-1726 of 30 December 2022 of the Finance Act for 2023 recorded in the previous year. For the calculation provided for in this paragraph, the revenue from the business property tax is increased by the amount of the levy on revenue provided for in A of III of article 29 of law no. 2020-1721 of 29 December 2020 on the finances for 2021. This allocation is distributed under the conditions defined in II of this article.
IV.
IV -When the financial and fiscal solidarity pact referred to in III is adopted in a public establishment of inter-municipal cooperation with its own tax system, created less than three years ago by the merger of public establishments of inter-municipal cooperation whose aggregate financial potential per inhabitant differs by at least 40% between the highest and lowest aggregate financial potential on the date of the merger, the public establishment of inter-municipal cooperation is required to introduce a community solidarity grant under the conditions defined in II.
V.-The Greater Paris metropolis has the option of instituting a community solidarity grant for the benefit of its member communes, under the conditions set out in article L. 5219-11.
