The annual revenues of local authorities are in the green for 2022, news that seems to go against the current context of a drastic increase in all expenditure and a decrease in the purchasing power of the French. Indeed, between December 2021 and 2022, overall operating revenue increased by nearly 4.3% on average, according to our colleagues from Parisian. The origin of this increase is in taxation, the income associated with it having increased by 4.8% over the past year.
In some cases, it is because of the general rise in consumer prices excluding tobacco that the tax increases. Indeed, the property tax is the perfect example: revalued each year according to inflation, it had been raised by 3.4% for 2022. It should be noted that, with regard to the revaluation of the said tax concerning the year 2023, it will jump a total of 7%, in line with today’s dizzying rate of inflation.
The overall trend at the municipal level is currently towards a general increase in taxes. The triggers for this trend are multiple. Among them, we obviously find the increase in energy prices, which makes the expenses related to all kinds of works or maintenance tasks of the municipalities more expensive. In addition, the overall operating grant follows a downward curve, tightening the budget of local authorities year after year.
This allocation is granted annually by the State and its reduction would have strongly motivated the municipalities to claim a certain number of so-called “optional” taxes from their inhabitants. The taxes in question are generally related to the maintenance of the municipality.
Discover below 5 optional taxes used by municipalities to bail out their coffers.