What do a shawarma chicken delivered to your home, a British family staying at the Relais Christine and a pied-à-terre in Montparnasse? They are all potential sources of tax revenue, in the eyes of the mayor of Paris.
Paul Simondon, deputy in charge of finances and the budget and Nicolas Bonnet-Oulaldj, president of the communist group at the Council of Paris, presented on September 5 to the Parisian executive a set of avenues to bail out the coffers of the capital… and not only .
In their report entitled “Future of local finances in Paris: proposals for a fairer, social and ecological system”, the municipal majority announces its ambitions on the eve of the debates in Parliament on the 2023 budget. Paris thus aspires to this that we return to taxation its role as a “powerful lever for sharing wealth”. Throughout this document of about thirty pages, the city positions itself as the standard bearer of the French communities which are depicted there as the “spearhead of the economy” tricolor.
“Recommendations” made after seeing the observation of the “gradual erosion of tax resources” of communities, which the authors attribute to the reforms of the Macron five-year term. Also found guilty of the drop in cash receipts, the Covid-19 health crisis is held responsible for the “growth in operating expenses” of Paris and the municipalities.
A report with high political ambition
Among the 16 avenues listed to counter this scissor effect, there is a call to “complete” the review of cadastral rental values. These theoretical values dating from 1970, on which the local taxes are based, are called to be revised by 2026. In the eyes of the town hall of Paris, they constitute today “a great tax inequity” between the French.
Also included is the increase in the tax on vacant housing “by multiplying it at least by four”, the creation of an additional tax on vacant offices or even the “uncapping” of the tourist tax for hotel customers. luxury.
In a sub-section dedicated to “tax links of multinationals and the digital economy with the territories”, the town hall of Paris also intends to be a source of proposals at the country level.
Thus, in addition to “promoting a national reflection to better tax the profits of multinationals” at the local level, the city suggests making “contribute more” the actors of the “digital economy and delivery trade”. In short, taxing home deliveries in one way or another, an idea that Parisian elected officials have been exploring for several years.
Real estate, tourism, e-commerce: a Lépine tax competition?
“This may relate to the establishment of a tax or fee on delivery fleets […] on the basis of their use of public space” suggest the authors of the report in the first place. Another avenue mentioned: the introduction of “a delivery tax on delivered products” or even a “lump sum contribution” based on the turnover of companies.
Point particularly highlighted in the document: the important part that the receipts of the indirect real estate taxation take in the budget of Paris. In this case, transfer duties for valuable consideration (DMTO).
During a real estate transaction, the purchaser must, when collecting his keys, pay a land registration tax (registration in the cadastre) and various registration fees. These are divided between a departmental tax and another municipal, which amount respectively to 3.8% and 1.2% of the sale value of the property. This is commonly referred to as “notary fees”.
The city of Paris too “dependent” on real estate transactions
Revenues from these DMTOs, as well as from another tax for the benefit of municipalities, the TADE (for additional tax on registration fees), now represent 20% of cash inflows into the coffers of the city of Paris.
What the municipality obviously does not welcome. Stressing that these receipts are “strongly dependent on the economic context and may be exposed to a market downturn”, the authors of the report thus regret a “dependence” on these taxes. However, they suggest broadening these taxes, by applying them to all real estate sales (HLM offices, in particular, are now exempt), as well as increasing them for “luxury goods”.
A type of property that is not lacking in the capital. The City has indeed not forgotten its constituents. The report, led by Paul Simondon, PS deputy in charge of finance, budget, green finance and funeral affairs, of the city of Paris thus makes another observation: Parisians represent high-potential taxpayers… who escape it.
“25% of taxpayers subject to property wealth tax (IFI), representing 38,000 households, are Parisians” underlines the document in a dedicated box. The contribution of Parisian households to income tax (IR) has also risen sharply, since a Parisian has an average income much higher than the rest of the Greater Paris Metropolis.
Problem for the town hall, the receipts of all these taxes on its citizens are “captured” by the State. The document thus underlines that the capital only has tax receipts “without direct link with the income of the owners”. Revenues whose growth “has no direct impact on the resources of the City of Paris”, regret the authors of the report.
The latter are counting on the Parisian parliamentarians to make these proposals during the debates on the Finance Bill (PLF) which will take place this autumn.