Property tax: calculation, exemptions, payment and dispute

Table of contents

In this article, we will explore the key elements of property tax, how it is calculated, possible exemptions, payment methods, and dispute procedures.

1- Property tax: definition and method of calculation

Property tax is a local tax that is paid annually by owners of real estate, whether it is unbuilt land, housing, commercial premises, or industrial buildings. It is calculated according to the cadastral rental value of the property, which is established by the tax authorities according to various criteria (surface, location, condition of the property, etc.). The tax rate is set by local authorities, which can adjust it according to their fiscal policies.

The amount of property tax is therefore calculated by multiplying the cadastral rental value of the property by the tax rate applied by the local authority. Deductions and allowances may be applied depending on the personal situation of the owner (age, resources, etc.) or the use of the property (main residence, rental, etc.).

2- Possible exemptions from property tax

There are several situations that allow owners to be partially or completely exempt from property tax:

Unbuilt assets

Unbuilt land can benefit from a temporary exemption of 2 years from the date of acquisition, under certain conditions.

Built goods for social use

Social housing, residential facilities for dependent elderly people (EHPAD), institutions for disabled people or emergency housing centers may be partially or completely exempt from property tax.

Rural goods

Owners of agricultural land or wood may be partially relieved of property tax, depending on the area of the land.

Modest owners

Modest owners, who have incomes below a certain ceiling, can benefit from property tax relief.

3- The terms of payment of property tax

It is paid annually by the owner of the property. The tax amount is mentioned on the tax notice, which is sent by mail at the end of summer. Payment can be made by check, bank transfer or direct debit, in one or more installments, according to the procedures proposed by the tax authorities.

It is important to respect payment deadlines, otherwise you may incur late penalties. In case of payment difficulty, it is possible to request a delay or an installment of payment from the tax authorities.

4- The contestation of the property tax

It is possible to contest the property tax, in the event of a calculation error or a dispute over the cadastral rental value of the property. The dispute procedures vary according to the reasons for the dispute:

Miscalculation

If you think the property tax amount is wrong, you can file a complaint with the property tax department. You must provide proof of the calculation error by providing supporting documents (cadastral plan, area survey, etc.).

Cadastral rental value dispute

If you think that the cadastral rental value of your property is too high, you can contest it with the departmental conciliation commission. You must submit a reasoned request, accompanied by the necessary supporting documents.

Other patterns

If you find that the property tax is unfair for other reasons (deterioration of the quality of life, impact on the value of the property, etc.), you can go to the administrative court.

5- Conclusion

Property tax is an important local tax, which is paid annually by property owners. It is calculated according to the cadastral rental value of the property and the tax rate applied by the local authority. The possible exemptions depend on the personal situation of the owner and the use of the property. The terms of payment are set by the tax authorities and it is possible to contest the property tax in the event of a calculation error or a dispute over the cadastral rental value of the property. It is therefore important to fully understand the calculation methods, possible exemptions, payment methods and dispute procedures to avoid disputes with the tax authorities.