The owners of a secondary residence in Bordeaux could be, in 2019, with a strong increase in their property tax. According to Les Echos, the city’s mayor, Alain Juppé, is preparing to submit the increase to the municipal council.
From 2015, certain municipalities may apply to secondary residences in an increase of property tax. This applies to furnished homes which are not used as a principal residence. This surcharge has been introduced to ensure that existing dwellings be “primarily devoted to the main dwelling” in the taut areas. Objective: to encourage secondary-residence owners to sell these houses or rent them as a principal residence.
The rate of surcharge (applied to the part of the property tax attributable to the municipality) was originally uniform, 20%, but from 2017, it may vary from 5 to 60%. In Bordeaux, it is to increase the surcharge from 20% to 50%.
What are the common concerned?
a total of about 1,200 communes, in some thirty cities, have the right to practice this surcharge. It is a question of cities into areas “tense”, where the housing supply is well below demand. (You can find them using the simulator official).
The decision to create an additional dwelling or to alter the rate must be taken by the city council. For the housing tax 2019, the vote must take place before October 2018.
According to Les Echos, a hundred municipalities have for the moment decided to introduce a surcharge. Among them, ten voted for the maximum rate. This is the case of Paris – the 60% will apply from 2017, and more recently, Nice: on 2 February, the city council has decided to move up to an increase of 20% to 60% in 2019.
cities that use the gross-up often explain that in recent years, in the tourist areas, the increase in the number of secondary residences has been carried by the platforms for tourist rental type Airbnb.
How to be exempt?
You live in a municipality affected by this surtax housing? You can escape the markup if:
– you are forced to reside outside of your main house to your work;
– you live in a retirement home or in a care facility, long-term, that your income does not exceed certain limits, and that you have retained the exclusive enjoyment of your old home;
– for a cause beyond your control (to prove it), you can’t assign the slot to a use as a principal residence (for example if it does not have the necessary equipment to occupation, details of Bercy).
to escape this tax, however, it must make the request by filing a claim with the tax office via your personal area on the website Impots.gouv.fr by mail or in your local public finances.
For the housing tax 2018, the deadline is December 31, 2019. It is advisable to pay the requested amount even if you make a claim. Because if you don’t get gain of cause, the amount would be increased due to the delay of payment.
As this is an increase of property tax, the individuals totally exempt from property tax are not covered.
And after 2020?
What will happen to the taxation of second homes after 2020 in case of full removal of the housing tax? The government will have to decide on the terms of its perpetuation.
“Paris and Bordeaux, are calling for the establishment of a specific tax for all homes under-occupied, second homes and vacant housing,” says James Harness, advisor to the mayor of Paris. We can’t continue to have so many people who sleep in the street, with the rate of dwellings under-occupied by 30% in the centre of Paris.” The city has approximately 215 000 secondary residences and vacant dwellings.
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he said He was ready to hit it hard. “It is necessary that the level of the charge is a sufficient deterrent. Today, this is not really the case with the surcharge of 60%, which represents on average an increase of 600 euros per year for a secondary residence. There should be a cost four times higher to convince someone who just a few weeks a year to go instead to the hotel.” According to him, with a fee really an incentive, it could be “almost multiply by two the number of housing sales per year in Paris, and this influx on the market could lower prices by 20%”.