Property tax 2023 in the PACA region: 3 new factors!
Property tax, a local tax payable by holders of built-up and unbuilt properties, is paid by the owners of these properties or by holders of real property rights, such as usufructuaries, bare owners or tenants in usufruct.
In the Provence-Alpes-Côte d'Azur (PACA) region, this tax is particularly onerous. In 2023, average property tax on built-up properties was €590 per inhabitant in PACA, compared with a national average of €410. This disparity is due to a combination of factors, including the high tax rates applied by the region's communes and départements, and the high rental values of properties.
Methodology for calculating property tax
Property tax is determined on the basis of the value of the land. cadastral rental value of the property, its floor area and tax rate.
The cadastral rental value is assessed by the property tax departmentThe valuation is based on the market value of the property. This valuation is then reviewed every ten years.
The living area corresponds to the floor area all enclosed and covered premises intended for habitation, including converted attics and basements.
The tax rate is determined by the communes and départements and can vary from one commune to another and from one département to another.
Property tax rates in the PACA region
In 2023, the average tax rates for property tax on built-up properties were as follows :
- Local authority: 24.2 %
- Department: 12.8 % Property tax on undeveloped land is also subject to local and departmental tax rates. In 2023, the average tax rate for property tax on undeveloped land was 1.5 %.
Factors behind the increase in property tax in the PACA region
The increase in property tax in PACA is due to a combination of factors, including :
- The increase in cadastral rental values, due to the rise in property prices;
- Increases in tax rates decided by the communes and départements;
- The implementation of the reform of cadastral rental values, which led to an increase in the rental values of many properties.
Implications of the property tax increase in the PACA region
The increase in property tax in the PACA region has major repercussions for taxpayers. It can lead to a significant increase in the tax burden for property owners.
Against a backdrop of rising energy prices and inflation, the increase in property tax can also represent an additional burden for households.
Compensatory measures
To offset the increase in property tax, some communes and départements have introduced schemes to support taxpayers. These schemes can take the form of tax reductions, subsidies or interest-free loans.
Property tax is a major tax in the PACA region. It is paid by property owners and is particularly high in this region.
The increase in property tax in the PACA region has major repercussions for taxpayers in the region and can lead to a significant rise in the tax burden.
Frequently asked questions
How to challenge my property tax in PACA?
You can contest your property tax if you believe the cadastral rental value is overestimated. Submit a claim to the property tax office within the deadlines. If refused, take the matter to the administrative court.
Can I be exempt from property tax in PACA?
Yes, certain exemptions exist: for elderly persons subject to income conditions, for new homes (2 years exemption), or for energy-saving works. Inquire at the tax center.
What are the deadlines to challenge property tax?
You have until December 31 of the year following the tax assessment to claim. For example, for the 2023 tax, a claim is possible until December 31, 2024. After this deadline, the tax is final.
What to do if my property tax increases sharply in PACA?
Check whether the increase is due to a revision of rental values or to works. You can request a reduction if the rental value is incorrect. Consult a tax lawyer to help you.
How much does a property tax challenge cost?
The claim is free. If you use a lawyer, expect €500-1,500 for assistance. If successful, you obtain a tax reduction, but the lawyer's fees remain your responsibility unless the administration is ordered to pay.
