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Parisians beware, taxes will increase!

2020-11-16T00:54:33.130Z


Anne Hidalgo (PS) wants to increase "notary fees" and tax second homes and tourist rentals more. Ell


Anne Hidalgo (PS) had promised during the municipal campaign not to increase taxes under the next term.

But the health and economic crises have passed this way, with exceptional expenditure and falling revenues in their wake.

If the property tax of Parisians should not increase (the rate will remain stable at 13.5%), a series of other taxes could be revised upwards or be created.

Thus, from 2021, the mayor of Paris plans to increase the notary fees, the housing tax on second homes, as well as the tourist tax on Airbnb rentals.

With these increases, Anne Hidalgo hopes to complete her budget (more than 8 billion euros) while avoiding an explosion of debt and especially without hitting Parisians too much in the wallet.

Only owners of second or tourist homes and buyers would be affected.

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These avenues will be presented during the debate on budgetary guidelines scheduled for the opening of the Paris Council scheduled from Tuesday to Thursday before the budget vote in December.

"The budget that will be proposed for the year 2021 is marked by the economic and social consequences of the health crisis, in the context of the continued disengagement of the State with regard to the financing of local authorities", explained Paul Simondon , the deputy (PS) to the mayor of Paris in charge of finances, last Thursday.

Paid parking for two-wheelers considered

This measure is being considered to find new revenue: charging scooters, motorcycles and other motorized two-wheelers for parking.

The subject should be discussed during an upcoming citizen consultation on mobility.

It was scheduled for mid-November but was postponed, to an undetermined date, due to the Covid.

“For now, this is only a lead, although it is seriously considered.

The final decision will be taken in the coming weeks, probably at the beginning of January, ”explains David Belliard, the environmental assistant responsible for travel.

But right now, we can expect an outcry in the ranks of the opposition and more generally among the Parisian and even suburban population, even if for the executive it does not necessarily have the right to chapter because it is a municipal decision.

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We are talking about some 100,000 motorcyclists who circulate every day in the capital for about 50,000 free dedicated spaces.

They can also park in the classic places.

The only risk is to park on the sidewalks, which is now strictly prohibited.

Drivers of two-wheelers risk a fine of 135 euros.

Active workers, who go to the office or who use two-wheelers to get to a meeting more easily, or delivery people would be on the front line.

But this desire to make them pay is above all driven by the fact that these devices, like cars, are polluting.

It is as much a public health struggle as it is to find new financial resources.

Homeowners in the crosshairs

The mayor of Paris plans to increase transfer duties for valuable consideration (DMTO) commonly known as “notary fees”, from 4.5 to 4.8%.

The scale had already been raised from 3.8 to 4.5% in January 2016. In 2021, the amount of DMTO should be less than 1.6 billion according to the “cautious” forecasts of the City, that is to say a little more than 60 million euros less than in 2020.

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The City also plans to hit owners of second homes more by increasing the housing tax by 100%, instead of 60% today.

Measures that risk angering real estate professionals while it has been slipping for several weeks as in the center of Paris.

Tourist tax on Airbnb rentals increased

Anne Hidalgo also wants to be able to increase the tourist tax on tourist rentals.

"An amendment has just been adopted in this direction, it is a good start", welcomes Paul Simondon.

The draft amendment to the 2021 finance bill voted on Thursday allows local authorities to raise the ceiling of the tourist tax for furnished tourist accommodation from 2.30 euros to 4.10 euros per person and per night, i.e. the same ceiling as for palaces.

To support hoteliers, the City of Paris also wants to reduce to 30 days (against 120 today) the period authorized for the rental of furnished tourist accommodation.

A choice which also aims to put back on the market, for sale or rental, real estate that had until then been dedicated to tourism, as desired in particular by the housing assistant Ian Brossat (PCF).

The opposition already raised

The debate on budgetary guidelines promises to be heated.

The co-president of the Independent and Progressives Group, Pierre-Yves Bournazel, is opposed to an increase in the DMTO and regrets that the City has not "launched structural reforms to save on operating expenses".

On the other hand, the deputy Agir is in favor of raising the tourist tax and supported the “legitimate request” of the mayor of Paris.

"It aims to establish equity between the platforms and the hotel sector" and constitutes "a financial lever without penalizing the Parisians".

Marie-Claire Carrère-Gée, councilor of Paris (LR), for her part criticized "the improvident management" and "the irresponsibility" of the City.

Rising expenses, falling revenues

In Paris, the bill for the health crisis will amount to more than 800 million euros by the end of the year due to exceptional expenses such as the purchase of masks, the strengthening of food aid for disadvantaged, the installation of barnums for screening (7.5 million euros), support for businesses in difficulty and the increase in the number of RSA beneficiaries.

The crisis also led to a decline in revenue of around 540 million euros.

The sharp drop in real estate transactions resulted in a decrease in revenue from transfer duties for a consideration (their amount decreased by nearly 15% during the period of confinement, from March to May 2020).

Parking revenues also fell due to the free parking granted during the same period.

Just like the revenue from the rights of cafes and restaurants.

Not to mention the revenue from the tourist tax which drops to 45 million euros in 2020, against 95 million euros in 2019, due to the absence of tourists.

“For 2021, an improvement in the health situation could gradually return to a level of tourist attendance close to that of 2019 and a level of revenue of 85 million euros in 2021, down 10 million euros compared to 2019 ”, wants to believe the assistant in charge of finances.

A scenario that the right contests.

In total, the City forecasts a decline of 1.4% in the amount of revenue in 2021 and an increase in operating expenses of 2.1%, "mainly due to the impact of the health crisis on social spending, justifying alone almost a third of this increase ”.

Paris debt is expected to reach 7.1 billion euros as of December 31, 2021.

Despite the impact of the crisis on the finances of the community, the Fitch Ratings agencies have just confirmed the “AA” rating in October 2020.

On the other hand, the perspective of the City of Paris has been revised, by the agencies, from stable to negative, due to the health crisis, "as for other communities, including Ile-de-France", specifies the Paris town hall.

Source: leparis

All news articles on 2020-11-16

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