LThe government is ready to reduce the efforts requested from the departments in the finance bill. Michel Barnier spoke this Friday, November 15 in the morning in Angers, at the close of the conference of the Départements de France association, where he promised a series of actions to relieve the departments. The latter had called on the government to review its budgetary copy, which threatens them, according to them, with “asphyxiation”.
“I am here to tell you that, taking into account your very specific situation, we are going to very significantly reduce the effort required of you by the finance bill,” declared the Prime Minister, noting a ““departmental model” as known for thirty years” reached “its limits”. However, he did not provide figures for the reduction in this contribution, which “will depend on the discussion in the Senate,” said Matignon.
An effort of 5 billion euros for communities
Among the measures, the Prime Minister announced an increase for three years in the ceiling on transfer taxes for valuable consideration (DMTO), i.e. “notary fees” levied on real estate transactions, by 0.5 points. According to comments reported by The Echoesthis should bring in a billion euros, “if Bercy’s figures are correct”.
ALSO READ What if we removed… the excesses of communication from communities? Notary fees are among the most important revenues of the departments, with 11.4 billion euros in 2023. According to The Echoesalmost all departments now apply the maximum rate of 4.50%, and demanded a provisional increase of 1 point. According to BFMTV, the increase in transfer taxes, to the tune of 0.5 points, will not be compulsory, but voluntary for a period of three years. An assessment will be made eventually.
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The finance bill for 2025 provides for an effort of 5 billion euros for communities, but according to Departments of France, the departments would be the communities most impacted by this effort, with 44% of the effort, or 2, 2 billion euros, even though their economic situation is recognized as fragile.
Faced with the situation, Michel Barnier also announced his desire to return “at a minimum” to the retroactive nature of the reduction in the rate of the Compensation Fund for value added tax, aid for community investment expenditure. Furthermore, the increase in contributions from local employers to the National Retirement Fund for local authority employees will be spread over four years instead of three.