Bercy believes that some owners are not paying enough and wants to re-evaluate the cadastral archives. “Is it legal to tax your toilet or running water in your home?” asked the president of the real estate site, who called for a tax on surface area, not the “quality” of housing.
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The president of the real estate site Particulier à Particulier, Corinne Jolly, believes on Wednesday 19 November on franceinfo that the property tax reform announced by Bercy is “cosmetics” and is mainly intended to “fill the coffers” of the State.
According to the Ministry of Economy and Finance, about 7.4 million housing units, or 10% of the real estate stock, do not pay enough property taxes due to errors in estimating surface area or equipment. Therefore, the government will carry out an automatic re-evaluation of cadastral files starting next year.
For Corinne Jolly, these reforms raise questions about justice. “Overall this is unfair,” he confirmed, remembering the calculations “still relying on the cadastral rental value which has not been renewed for decades”. According to him, what the government is proposing is reform “easy” but disconnected from market reality. The aim is to carry out possible reforms “to fill the coffers”.
The criteria considered in the evaluation include the surface area of the accommodation and its comfort elements, such as running water, bath or heating, which correspond to additional square meters. “Is it legal to tax the availability of a toilet in your home? Is it legal to tax the running water in your home?asks Corinne Jolly, believing that these amenities are today’s standard and no longer considered a sign of luxury.
These revisions could result in an extra few dozen euros per owner, with an average of extra 12 euros per square meter, according to the Directorate General of Public Finance. Concerned taxpayers will be able to challenge the increase if they consider their equipment to be poor value.
Property taxes have increased by 37% in ten years, twice the rate of inflation. Corinne Jolly calls for simplification: “Instead, the calculations should be simplified,” by pressing it “On very simple parameters like surface area, versus trying to estimate the quality of housing. It’s very difficult to renew tens of millions of housing units.”
