Cadastre and property tax

The land registry is a tax document. Indeed, its first use is to serve as a basis for the calculation of local taxes and in particular that of property taxes. But from what elements and how is the property tax calculated?
The land rental value

For each parcel of land, built or unbuilt, identified by the land registry the administration calculates a land rental value. It serves as the basis for the establishment of local taxes (land and housing tax).
The land rental value corresponds to the "annual theoretical rent that could be derived from a built or unbuilt building, by renting it under normal conditions."

The land rental value is developed differently depending on whether the plot is built or not built. Each year, this value is increased by a flat-rate revaluation coefficient set by the Finance Act. For 2016, it is 1.01 (an increase of 1%).
The land matrix lists for each owner, the plots he holds on January 1 of each year as well as their land rental value.
Calculating the rental value of built and unbuilt properties

All built properties located in France are subject to property tax, including factory chimneys, bridges, construction sites.
For built properties the computational unit is the local.

For example: 1 house or an apartment - 1 room, 1 house with a separate garage - 2 premises.

For the determination of the land rental value of a dwelling, the administration starts from the surface of the dwelling. This is then weighted according to the category of housing (from 1 for luxurious dwellings to 8 for dilapidated and unsanitary dwellings). The classification of the different categories of housing is voted by the municipal commission of direct taxes.
The administration also takes into account the comfort elements (water, electricity, bathroom numbers, heating, elevator, everything to the sewer, etc.) as well as the area of outbuildings (garage, cellar, etc.), the situation (dessert, location).
All of these elements provide a weighted area to which a tariff per m2 weighted is applied.

For new dwellings or during expansion stakes, the land rental value is calculated based on the declaration of completion of work that you must provide to the administration within 90 days of the completion of the project.

For unbuilt properties the computationune is the plot. Unbuilt properties are divided into 13 groups: Land, near, orchards, vineyards, lakes and ponds, quarries, soils of built properties, land of amenity, building land, etc. For each municipality a price per hectare is set according to the nature of the crops or the category.

The calculation of the property tax

When the land rental value is determined for a given premises or parcel, the administration applies a lump sum allowance:
  • 50% of the land rental value of a built property to account for management, depreciation, maintenance, repair, insurance costs.
  • 20% of the land rental value of an unbuilt property to account for maintenance and dieback costs.

At this net rental value, the administration then applies the tax rates set annually by the local authorities (community, community of communes or agglomeration, department, region).
The reform of land rental value

Regularly, the administration announces a revision of land rental values. Indeed, reference rental values date from 1970 for built properties and 1960 for unbuilt properties. Initially, rental values had to be discounted every 3 years and revalued each year. However, the discount was not carried out until 1980 and only the annual lump sum revaluation was applied. As a result, the calculation base has become obsolete and penalizes newer dwellings that are sideways according to criteria dating back to the 1970s. Started in February 2015 in 5 departments, the revision will finally be postponed after 2017.