France/Half of the communes in the Dordogne are increasing their property tax
The property tax increased by an average of 1.9% across France in 2022. The base, decided by the State and indexed to inflation, is up 3.4%. In the Dordogne, half of the local authorities are increasing the other part, the tax rate, from 0.5 to almost 10%.
Since the end of August, it has arrived in the mailboxes and its figure has sometimes increased: the property tax. 1.9% increase on average on the national territory. The Dordogne is no exception to the rule. The reason is the increase of two factors that constitute the tax, including the one decided by the local authorities. Explanations of Didier Blanchini, departmental director of public finance in Dordogne, to pay his property tax until October 15, 2022.
The base, the first component of the property tax, is decided by the State. It is increasing this year by 3.4%, "to take account of inflation", says Didier Blanchini. It is calculated on the basis of the evolution ofa harmonized consumer price index. Last year, it only increased by 0.2%. On the other side are the local governments: they decide on their share of the tax rates.
Up to 20% increase
"In the department," says the director of taxes in the Dordogne nearly half of local authorities have not increased their rates. Those who have increased their rates have done so very slightly: from 0.5 to 1 or 2 points maximum. For example, in Chancelade, a town in the Périgueux conurbation, the increase in the tax rate is almost 10%, according to information from France Bleu Périgord.
"The combination of the two - the increase of the rate on the base, plus the increase of the point on the rate -, Didier Blanchini continues, has a multiplier effect." As a result, in Chancelade, the increase in property tax has reached almost 20% for owners. The property tax is generally higher in rural areas, says the departmental director. "This comes mainly from corporate taxation, which is richer in some departments, urban, of the national territory, especially in the Paris or Lyon region: local authorities draw more resources from companies and can therefore relieve the taxation that weighs on households."
A further tax increase in 2023
The harmonized consumer price index, which is used to calculate the base of the property tax, was calculated by INSEE in November 2021, which is before the war in Ukraine began in February 2022 and the subsequent price surge. "I expect an increase in the bases for next year, which should be on the order of 5.5%, 6%, maybe more." warns Didier Blanchini.
This year, nearly 2,000 farmers in the Périgord region are benefiting from reductions in their property taxes on non-built properties. In other words, they do not pay their taxes, in particular to compensate for the freeze suffered at the beginning of the year. 163 communes in the Ribéracois and 18 in the Bergeracois are concerned. The State does not collect, for the benefit of local authorities, 2.7 million euros, or 2.5 times the amount of tax relief in 2021 in Dordogne - which amounted to 950,000 euros. The property tax relieved for the summer drought episode will only be granted in October and November.