Sébastien Lecornu tries to calm anger with the announcement of “a flash consultation”

Is this tax increase too much? The increase in property tax which concerns 7.5 million homes in France does not pass, the government tries to calm things down and opens the discussion.

In the middle of the budget debate, the announcement had the effect of a small bombshell. The decision of the Ministry of the Economy, revealed by the press, to automatically reassess certain property taxes has ignited the powder. The idea is to reassess the amount of this local tax, based on so-called elements “comfortable” in housing, such as having a bathtub, toilet, water or heating. This equipment, until now, was not taken into account for nearly 7.5 million homes, according to Bercy. Hence the need to update data unchanged since the 1970s.

It would cost on average 63 euros more for the owners concerned. And this increase could bring in around 460 million additional euros to local authorities. The sums are not astronomical, but this measure nevertheless arouses an outcry, on both the left and the right, not to mention the outcry from real estate professionals such as the Owners’ Union which denounces an approach “arbitrary, shameful, without transparency or consultation.”

In an attempt to defuse discontent, Sébastien Lecornu announced, Thursday, November 20, “a flash consultation” with all the stakeholders concerned, local elected officials in particular, to discuss the necessary changes to be made to this property tax, the method of calculation of which he considers is no longer suitable. It is true that this calculation is not always well understood, this tax is based on cadastral values ​​and each year, it increases mechanically according to inflation. But municipalities can also vote for increases in this tax, and in recent years, mayors have not held back.

In ten years, property tax has increased on average by nearly 40%, but it is especially in the last five years that the amounts have skyrocketed, sometimes with increases of 50%, 60% or even 70%. With the disappearance of the housing tax, and to meet certain expenses, many municipalities have “caught up” on this property tax, which 32 million French people pay.

Can increasing it a little more fuel a fiscal frustration that is rearing its ugly head? Within the executive, we are playing it safe, some still remember the increase in the carbon tax on fuel which triggered the yellow vest movement…