Errors to look out for if taxe foncière or habitation bills have gone up

Many taxe foncière bills were payable by today unless paying by internet, however it is still not too late to query the bill for a refund of part of the tax; meanwhile many households will be receiving their taxe d’habitation bills.

In many parts of France, tax rises may simply be due to rises in the percentage rates applied by the local councils – especially the departmental ones in the case of taxe foncière. You can check this on the bill under the line that says ‘taux 2015’ and ‘taux 2016’.

If a bill increased due to this there is nothing you can do about it, however if that was not the reason, or not the only one, it could be that a mistake was made in calculations and this could enable you to make a successful réclamation (ie. an application to contest the bill and obtain a reduction or refund).

Here are some examples you might want to look out for on the bills for your local taxes (foncière or habitation):

• You see on your taxe foncière statement that the valeur locative cadastrale (VLC - theoretical annual rental value of the home) has increased significantly since last year. The value retained for this will be equivalent to twice the amount shown under the section Base (for taxe d’habitation it is shown as valeur locative brute). It is normal for it to have increased by 1%, however if it is significantly more – and you have not, for example, extended your home or added new amenities - you could seek to know why this is. It is advisable first to obtain a copy of the fiche de calcul (working out form) for your VLC from your local centre des impôts fonciers.

• Changes in family situation – notably the birth of a new child – have not been taken into account for the taxe d’habitation. Percentages amounting to at least 10% for each of the two first dependents and at least 15% for each of the following ones should have reduced the amount of the valeur locative brute so as to give a lower base nette d’impostition (net base on which the council percentage rates are applied).

• In certain areas if the taxe d’habitation levied by the commune has increased 20% despite it being your main residence, then the mairie may mistakenly have taken it as being a holiday/second home.

• You thought you should be totally exonerated from one or both of the main local taxes due to your age, but you have received a bill. Total exoneration depends on several factors – you should not be a wealth tax payer, your last revenu fiscal de reference (net household income) should not have exceeded a certain threshold (€10, 697 for a single person or €16,409 for a couple) and you should be either at least 60 for taxe d’habitation and 75 for taxe foncière as of January 1 of the year in question.

• You did not benefit from an abattement général à la base (generalised lowering of the base) applied to the valeur locative brute for your taxe d’habitation. This will usually be of around 5-10% of the average VLC of homes in your area and should be shown in the abattements column. However, occasionally the mairie may have voted to remove it in a given year, so you should ask them first if that was the case.

For more information about the local taxes in France including how they are calculated, available reductions, and contesting bills, our Local taxes in France helpguide 2016-2017 is now available at www.connexionfrance.com/expatriate-information-sheets.php