Property tax in Paris will increase by more than 50% in 2023, announces Anne Hidalgo

Faced with a difficult budgetary situation, the mayor of Paris, Anne Hidalgo, decided to increase the property tax by 52%, abandoning her campaign promise not to increase taxes, according to a letter which she published on Monday, November 7.

The property tax rate will therefore increase from 13.5% to 20.5% in 2023, except for owners who undertake the thermal renovation of their apartment and those “encountering economic difficulties”, in particular the holders of solidarity allowances or the taxpayers of more than 75 years (subject to means), specified the elected socialist. These two categories will benefit from total exemption.

For the others, an owner of a 50 square meter will see his property tax go from 438 to 665 euros on average, and that of a 75 square meter from 576 to 874 euros, according to figures communicated by the City. Property tax “is today in Paris the lowest in France, at 13.5% against 41.61% on average in the major French cities, and it has not increased since 2011”argued Anne Hidalgo.

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Additional revenue of 586 million euros in 2023

The capital has 2.1 million inhabitants but only 32% of owners, a percentage there also lower than that of other cities, underlined the first deputy of the mayor of Paris, Emmanuel Grégoire, during a press point, recognizing “a very important effort” for the taxpayers concerned. “We said, during the campaign [des municipales en 2020]that we would not raise taxes”recognized the elected socialist, “but a lot has happened since then: the Covid crisis, the Ukrainian crisis, the energy crisis (…), systemic crises that are long-term”.

This decision “will make it possible to maintain the high quality of our public services, to continue to invest in housing, in the ecological transition, in the maintenance and modernization of our heritage and our equipment, in the beautification of our streets and gardens »argued M.me Hidalgo, which plans 1.7 billion investment for 2023.

This increase should bring the City additional revenue of 586 million in 2023, anticipates the finance assistant, Paul Simondon. According to this other elected socialist, the City will only borrow in 2023 514 million against 860 this year, and its outstanding debt should be around 8 billion euros.

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The government and the opposition castigate the management of the City

Since the health crisis of 2020, Anne Hidalgo has denounced the lack of financial support from the State to cities, in particular to hers. During the budget review, the government “refused to consider the amendments” aimed in particular at increasing the tourist tax for luxury hotels and palaces, she writes, which means that she has not “other choice” than raise this local tax.

“As often with Ms. Hidalgo, the state has a good back”replied to the press the Minister of Public Accounts, Gabriel Attal, for whom “the State has strongly supported the city of Paris”. But he can’t “resolving the management problems of the City of Paris” and his “absence of structural reforms”he added, castigating the fact that there is “more civil servants at the City of Paris than at the European Commission, civil servants who are still not on 35 hours”.

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The opposition Les Républicains, led by Rachida Dati, denounced in a press release a town ” bankrupt “ with a “explosion of the Parisian debt”which reaches, according to her, 10 billion euros.

The World with AFP


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