French General Code of Local Authorities
In forceI.-For the application of 3° of a of article L. 3332-1, the department may allocate to reserves a fraction of the revenue from transfer duties for valuable consideration that it recognises in respect of a financial year pursuant to articles 1594 A and 1595 of the General Tax Code.
The amount of this allocation in respect of a financial year may not exceed the difference between the amount of transfer duties for valuable consideration recorded during the financial year and the average amount of these same proceeds recorded during the previous three financial years.
In respect of the revenue from transfer duties for valuable consideration recorded during a financial year, the département may allocate it to reserves during that same financial year or during the following financial year.
When the department makes an allocation to reserves during the following financial year, the amount determined within the limits defined in the previous paragraphs may not exceed the amount of the operating surplus brought forward in accordance with 2° of article R. 3312-10.
The cumulative amount of income allocated to reserves may not exceed fifty percent of the average amount of income from transfer duties for valuable consideration received over the previous three financial years.
II.-The allocation to reserves of a portion of transfer duties for valuable consideration is recorded by deliberation of the departmental council. The deliberation specifies the amount allocated to reserves and mentions, on the one hand, the average amount of these amounts collected over the previous three financial years and, on the other hand, the cumulative amount of income thus allocated to reserves as recorded in the last approved administrative account.
When the department's financial situation deteriorates significantly as a result of an increase in its expenses or a decrease in its income compared with the average figures for the previous three financial years, the departmental council may decide to take back the transfer duties allocated to reserves. The amount thus taken back may not exceed the cumulative amount recorded in the last approved management account for transfer duties for valuable consideration allocated to reserves. The deliberation specifies the amount of the reversal and the cumulative amount of transfer duties for valuable consideration placed in reserves recorded in the last approved management account.
