- Cadastral rental value
- Calculation of the rental value of built and unbuilt properties
- The calculation of the property tax
- The reform of the cadastral rental value
The land registry is a tax document. Indeed, its first utility is to serve as a basis for the calculation of local taxes and especially that of the property tax. But from what elements and how is the property tax calculated?
Cadastral rental value
For each parcel of land, built or undeveloped, identified by the cadastre, the administration calculates a cadastral rental value. This serves basis for establishing local taxes (property and housing tax).
The cadastral rental value corresponds to the "theoretical annual rent that could be drawn from a building built or not built, by renting it under normal conditions".
The cadastral rental value is developed differently depending on whether the parcel is built or not built. Each year, this value is increased by a flat-rate revaluation coefficient set by the Finance Act. For 2016, it is 1.01 (ie 1% increase).
The cadastral matrix lists for each owner, the parcels he holds on January 1 of each year as well as their cadastral rental value.
Calculation of the rental value of built and unbuilt properties
All built properties located in France are subject to property tax, including factory chimneys, bridges and building sites.
For built properties the unit of calculation is the local.
For example: 1 house or apartment = 1 room, 1 house with a separate garage = 2 rooms.
For the determination of the cadastral rental value of a dwelling, the administration starts from the surface of the dwelling. This is then weighted according to the housing category (from 1 for luxurious dwellings to 8 for dilapidated and unhealthy dwellings). The classification of the different categories of housing is voted by the communal commission of direct taxes.
The administration also takes into account elements of comfort (water, electricity, bathroom numbers, heating, elevator, mains drainage, etc.) as well as the surface of the outbuildings (garage, cellar, etc.), the situation (service, location).
All of these elements make it possible to obtain a weighted surface to which a weighted square fee is applied.
For new dwellings or during extension work, the cadastral rental value is calculated according to the the declaration of completion of works that you must provide to the administration within 90 days after the end of the work.
For unbuilt properties the unit of calculation is the parcel. The undeveloped properties are classified into 13 groups: Land, near, orchards, vineyards, lakes and ponds, quarries, soils of built properties, pleasure land, building land, etc. For each municipality a price per hectare is fixed according to the nature of the crops or the category.
The calculation of the property tax
When the cadastral rental value is determined for a given premises or parcel, the administration applies a standard abatement:
- 50% on the cadastral rental value built-up property to reflect management, depreciation, maintenance, repair and insurance costs.
- 20% on the cadastral rental value an undeveloped property to take into account maintenance and decay costs.
At this net rental value, the administration then applies the tax rates set annually by the local authorities (commune, community of municipalities or agglomeration, department, region).
The reform of the cadastral rental value
Regularly, the administration announces a revision of the values cadastral leases. Indeed, reference rental values date from 1970 for built properties and from 1960 for undeveloped properties. Initially, the rental values had to be updated every 3 years and revalued each year. However, the update was carried out only in 1980 and only the annual lump sum adjustment was applied. The basis of calculation has therefore become obsolete and it penalizes recent homes that are sides according to criteria dating from the 1970s.
Started in February 2015 in 5 departments, the revision will finally be postponed after 2017.