the departments and municipalities hit the jackpot

With the real estate market in good shape in 2021, the amount of onerous transfer duties (DMTO) skyrocketed in 2021. The communities that collect them, departments and municipalities in the lead, have thus earned more tax revenue in their coffers. .

The improvement in real estate observed in 2021 also benefited local authorities. No less than 1.2 million real estate transactions were recorded last year, on which municipalities and departments received onerous transfer duties (DMTO), also called notary fees, reports Capital.

In 2021, local authorities collected 20 billion euros, a considerable and healthy increase of 22% compared to 2019, according to the annual report on local finances published on Wednesday June 22 by the Observatory of public finances and local public management. (OFGL). The departments are the big winners after having received 14.3 billion euros from DMTO, or 2.8 billion more than in 2019.

Less greedy departments

In the majority of cases, the departments apply a land advertising tax of 4.5%, ie the maximum provided for by law. Four departments are less greedy, with a rate below 3.8%: Indre, Isre, Mayotte and Morbihan. In any case, this financial windfall has enabled many departments to lower their outstanding debt, notes Capital.

On the side of the municipalities, the gain due to the DMTOs is 4.9 billion euros in 2021, i.e. 696 million euros more than in 2019. The municipalities apply a lower tax rate, around 1 .2%. The improvement has mainly benefited the municipalities of 5,000 and one million inhabitants, where the increase in notary fees has reached 25%.

Thanks to the dynamism of the French real estate market, the product of DMTOs has swelled by 10 billion euros since 2014. The year 2022 could however mark a halt in this trend: the rise in real estate rates combined with the fall in the wear and tear will limit the realization of real estate projects. And a drop in transactions will automatically lead to a drop in local tax revenue.

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