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Real Estate Taxation and Local Tax Policies in France

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Author Info
Bizet, Bernard () (ESSEC Business School)
Abstract

Merging -or separating- real estate patrimony taxation and local taxation is still a debate in France. How much of these fiscal resources should be allocated to the State and how much should be channeled to local decision bodies? This research document expresses an overview of the 1994 to 2000 period which saw many changes in local institutions as well as in property taxation of. It aggregates and compares numerous elements which are not yet assembled in the French economy literature. Truly the multitude of taxes particular to France allows, as a counterpart, a precise use of the resources and fits the design of good circumstantial “policies” (national budget, property taxation, real estate investment/market, etc.). However those numberless taxes bring a great complexity in the use of the tax products acting against economic principles and call for theoretical analysis. For instance, how to associate equity with efficiency (basic dimension of a successful tax) since real estate is no longer simply defined as a stable patrimony asset but also as a product and a tradable good devoted to taxation? Within this framework this paper surveys the main taxes attached to built and non built land or properties during the 1994 to 2000 period. It analyses the process of the financing of urbanization which is based on these taxes. It shows the main steps of the patrimony taxation and urban taxation in France and the distribution of the tax products between local institutions. Some comparisons with other European countries are given.

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Publisher Info
Paper provided by ESSEC Research Center, ESSEC Business School in its series ESSEC Working Papers with number DR 04010.

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Length: 38 pages
Date of creation: Sep 2004
Date of revision:
Handle: RePEc:ebg:essewp:dr-04010

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Postal: ESSEC Research Center, BP 105, 95021 Cergy, France
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Web page: http://www.essec.edu/
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Related research
Keywords: Property taxation; Urban development financing; Real estate sector; Local taxation;

Find related papers by JEL classification:
H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services
R51 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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