Second-homes tax may live on

Paris and Bordeaux want to keep it on second homes after 2020 

Second-home owners are being targeted by cash-hungry mairies who are increasing the ‘surtaxe d’habitation’ as a way to offset the looming loss of the taxe d’habitation, which the government will phase out for 80% of homes by 2020.

Since 2015 the surtaxe was a uniform 20% in all communes that applied it, but this year Nice is raising its to 60% while Bordeaux aims for 50% and Saint-Jean-de-Luz has set its at 40%.

Paris led the way when it set its extra tax at 60% to fight holiday-flat owners using Airbnb when it is desperately short of year-round homes and it has now called for the surtaxe to be transformed into a perpetual tax, set at its own rate.

Paris and Bordeaux want to keep it on second homes after 2020 as the taxe d’habitation is a major part of their revenue and they fear that substitute government funds will be phased out.

The Association des Maires de France says it makes up 36% of commune budgets for a total of €22 billion – and in Paris alone that added up to €63.8 million in 2017.

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