commission on fiscal imbalance 合集

Overall such aid is highly complex although the

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Unformatted text preview: ransportation - electricity tax - additional transfer taxes - taxes related to urban planning — in the departments: - vehicle stickers (largely eliminated in 2000) - tax on property publicity and registration fees - electricity tax — in the regions: - tax on registration certificates - tax on driver’s licences. 6. ♦ Broadly speaking, local authorities do not control tax bases, which are established for remuneration by the State’s taxation services on behalf of local authorities. However, the local authorities may grant relief, the nature and conditions of which are governed by legislation. The State adds its own tax relief to that of the local authorities, which gives rise to financial compensation (cf. infra.). ♦ In principle, the local authorities vote freely on tax rates, although this freedom is, in fact, considerably limited even though it is more extensive than in many EU member countries. ♦ As for the business tax, minimum and maximum rates are levied, which apply not to the tax base but to added value (3.5% to 4% depending on the size of the business). The rate of the business tax may not vary more rapidly than the rates of taxes borne by households under the same authority. In the case of the housing tax or property taxes, no other rate tunnel is adopted but a taxation threshold is defined by legislation (housing tax). ♦ Intercommunity taxation has undergone various major reforms, the most important of which is sanctioned by the law on intercommunal cooperation of July 12, 1999. Two intercommunal tax systems must be distinguished. In the case of intercommunality accompanied by additional taxation, the Établissement Public de Coopération Intercommunale (EPCI) votes on a rate that applies to the direct taxes (TFNB, TFB, TH and TP), which makes intercommunality the fifth overlapping level of taxation. As for intercommunality accompanied by own-source taxation (single urban business tax), the EPCI votes on behalf of the communes that are part of the intercommunal structure the single business tax rate that will 231 Commission on Fiscal Imbalance apply to all of the members, thus avoiding intracommunal tax competition. Since 1999, the community business tax rate may not vary freely in relation to household tax rates, which continue to be set by the member communes of the EPCI. ♦ Proceeds from local taxes are paid monthly (through advances) to local authorities. 3.6. The structure of State financial aid to local authorities is complex ♦ State financial aid to local authorities stood at nearly 300 billion francs in 2000. This amount is considerable, equivalent, for purposes of comparison, to nearly three-quarters of personal income tax revenues, although it does not reach as a relative proportion the amounts from which local authorities benefit in the United Kingdom or Germany, for example. ♦ Overall, such aid is highly complex, although the principles governing its structure and development are very similar to those found in many countries. In this instance, the weight of history is decisive. ♦ After a lengthy period in which State aid often took the form of conditi...
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This note was uploaded on 03/06/2013 for the course ECON 220 taught by Professor Paulo during the Spring '13 term at University of Liverpool.

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