The so-called ‘garden shed tax’ has shot up this year, linked to rising construction costs.
This one-off tax, officially taxe d’aménagement, is paid on most constructions requiring authorisation from the council, whether formal planning permission or just prior declaration.
It is known as the garden shed tax because, unlike most property taxes, it is also payable on simple sheds, as long as they have a ground surface area of at least 5m2 and a ceiling height of at least 1.8m.
Compared to last year, the tax has risen around 7%, whereas rises in the previous two years were limited to 1.1% and 0.7%. This hike, confirmed by decree in Le Journal Officiel, is said to be linked to the cost of construction, which is the main factor in the formulas used.
The latest Insee figures show a rise in these costs of around 3.5% between the first and third quarters of 2021, but do not account for the last quarter, when prices are said to have risen steeply.
The taxe d’aménagement is worked out using a formula which takes the surface area in square metres multiplied by a set value, which this year is €929 (up from €870) in Ile-de-France and €820 (up from €767) elsewhere.
A percentage tax rate set by local councils is then applied to this figure, so, for example, if your local rate is 7% and you built a 6m2 shed outside Ile de France, you would have paid €322 last year and this year would pay €344.
In some areas, people will pay even more if their councils choose to increase the rates this year.
The tax is payable only once, in the 12 months after obtaining authorisation, or in two payments spread over 24 months if the amount is above €1,500. In the case of prior declaration, authorisation is given tacitly one month after the declaration if you do not hear otherwise.