A promise kept
Abolished since 2023 for main residences, this tax was a key point in the electoral promises of former President Emmanuel Macron.
Despite rumors and pressure from certain elected officials, the current government has clearly stated that there will be no return to the old system. A decision greeted with relief by many citizens who see it as a welcome form of fiscal stability.
The repercussions on the municipalities
The abolition of the housing tax is not without consequences for local budgets. Municipalities, which partly relied on these funds, must now find new sources of income to maintain their services and investments.
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Catherine Vautin, Minister of Territorial Partnership and Decentralization, raised the possibility of exploring other tax alternatives to compensate for this shortfall, without penalizing taxpayers.
The impact on second homes
If main residences are now exempt, the housing tax continues to weigh on second homes. This measure aims to discourage real estate speculation and limit vacant housing, often transformed into seasonal rentals.
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In 2023, more than 300 municipalities applied a surcharge on second homes. In 2024, this number will explode, demonstrating the desire of local authorities to regulate the real estate market and support the economy of small towns and villages.
A fiscal balance to be found
The debate on taxation and the distribution of public costs remains lively. Michel Barnier, who recently arrived at Matignon, highlighted the precariousness of French public finances, requiring pragmatic measures to ensure a lasting balance.
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Discussions in the National Assembly are not limited to the housing tax; they also encompass broader issues such as pensions and taxation for the wealthiest, in a context where the left is demanding a more equitable distribution of wealth.
Here is an overview of the alternatives considered to compensate for the loss of municipal revenue:
- Increase in property tax on non-residential properties
- Introduction of targeted ecological taxes
- Increase in transfer taxes for luxury real estate transactions
“We must ensure fiscal stability while guaranteeing the necessary resources for our municipalities so that they can continue to invest in the future,” declared Catherine Vautin during a recent interview.
The abolition of the housing tax on main residences symbolizes a turning point in French tax policy, oriented towards greater fairness. However, finding consensus on ways to effectively finance local public services remains a major challenge for the government and local elected officials.
