French General Code of Local Authorities
In forceI. - As from 1st January 2001, notwithstanding the provisions of article L. 2332-2, before its budget is voted, the newly-created public establishment of intercommunal cooperation subject to the provisions of Article 1609 nonies C of the General Tax Code will receive monthly advances from January, up to a limit of one twelfth of the amount of taxes and charges transferred, collected by way of assessment in respect of the previous year on behalf of its member communes and, where applicable, the pre-existing public establishment(s) of intercommunal cooperation with or without its own tax status.
In return, the member communes of a public inter-municipal cooperation establishment subject to the tax regime of article 1609 nonies C of the General Tax Code and pre-existing public establishments for intercommunal cooperation no longer receive twelfths, up to the amount paid to the new public establishment for intercommunal cooperation in respect of the transferred business property tax, but benefit monthly from the compensation allocation paid by the latter.
The adjustment is made as soon as the amount of taxes, charges and compensation allocations provided for in the budget for the current year is known, respectively for each local authority and public establishment of intercommunal cooperation.
II. - The provisions of I apply, from 1st January 2002, to all newly created public establishments of inter-municipal co-operation with their own tax status.
III. - For the application of II, from 1st January 2002, to newly created communities of communes, as referred to in article 1609 quinquies C of the General Tax Code, the monthly advances received by these bodies in January, before the budget for the current year is voted, are limited to one twelfth of the amount determined, by applying, for each of the four taxes, to the total amount of the tax bases of the member municipalities for the previous year, the average rate recorded the previous year at national level for the communities of municipalities referred to in I of the aforementioned Article 1609 quinquies C.
The regularisation of the monthly advances paid to these public establishments of inter-communal cooperation is carried out on the basis of the tax revenue voted for the current year, as soon as its amount is known.
