Local taxes: Bordeaux joins the cities that increase the property tax
Posted 23 Feb. 2023 at 10:57Updated Feb 23. 2023 at 10:58 Like Paris, Lyon or…
Posted 23 Feb. 2023 at 10:57Updated Feb 23. 2023 at 10:58
Like Paris, Lyon or Mulhouse, Bordeaux will involve the owners this year. In order to “deal with the inflationary shock”, its ecologist mayor Pierre Hurmic will indeed propose, during the municipal council at the beginning of March, to increase the property tax rate by 4.53% in 2023.
According to the budget orientation report, the city expects to see its expenditure increase by 30 million euros in 2023, after having already suffered a rise of 20 million in 2020 during the first year of the health crisis. The main cause of this “shock” is the spectacular rise in the energy bill, which has almost tripled to nearly 18 million euros, to which must be added the rise in the index point and general inflation.
“We have already resorted to a whole series of savings, in particular on energy expenditure or on general charges. Finding additional margins would imply restricting access to municipal services, which we refuse to do, “explains the entourage of Pierre Hurmic .
“We pick the pockets of the people of Bordeaux when we had made proposals which made it possible to save 5 million euros without touching taxes”, thunders Nicolas Florian, the former mayor (LR) who had succeeded Alain Juppé. This increase in property taxes, the nominal rate of which would increase from 46.38% to 48.48%, would place Bordeaux in around 15th place among cities with more than 100,000 inhabitants (according to the 2022 ranking) and would affect the 32% of Bordeaux residents who own their homes.
While most of the 42 cities with more than 100,000 inhabitants have already held their budget orientation debate or voted on their budget, seven of them have implemented rate increases or are preparing to do so. In 2022, twelve territories (either at the level of the municipality or the intermunicipality) had already activated the tax lever, according to a study by the firm FSL.
Among the increases for 2023, some will be spectacular, such as in Paris (+52%) or Grenoble (+25%, in a town where the rates were already very high). In Metz, it is an increase in the rates of property taxes on built and unbuilt properties and of the housing tax on second homes and on vacant dwellings of 14.3% which is looming.
“Recourse to increasing the rates of direct local taxation appears to be inevitable”, explains the city administered by François Grosdidier (LR). She indicates that she has chosen “not to degrade the public service”, stressing that the closure of a media library or a swimming pool would only generate, according to her, “often minimal financial gains”. Brest Métropole also plans to increase the “household” rates by 12.1% (property taxes, housing tax on second homes and vacant homes) and by 2.71% that of the property contribution for companies.
Whether or not they increase local taxes, mayors can in any case count on substantial tax revenues in 2023. Property tax will already automatically increase significantly for all owners due to the flat-rate increase in rental values, which will be 7.1% this year, compared to 3.4% for 2022.