Have you checked your property tax? Take stock now!

The new school year brings many things, including the swirling dance of taxes. That’s why we’ve produced a comprehensive review on this topic. The Sextant team wanted to look at property tax in more detail, as it is admittedly rather obligatory for the taxpayer. It is therefore all the more important for you to take stock. First, check whether the tax is legitimate and if it is, review the amount. If not, we will explain how to challenge the tax.

Who must pay property tax?

At first it is quite simple but when you dig deeper it gets a bit more complicated! The good news is that the tenant is rather spared. This is also why you should check your statement twice rather than once.

So at the outset, the landowner, as at 1st January of the current year, is liable to pay property tax. This includes agricultural land, a noble cause but not Sextant’s field – we work solely in property. Indeed, where the beneficial interest has been separated from the bare ownership (the technical term is the division of ownership), it is the beneficial owner who must pay the property tax. However, the tenant must pay in the case of a long-term lease, namely between 18 and 99 years (the technical term is a building lease) – this rule also applies to rehabilitation or construction leases.

In the case of co-ownership – which is often the case in cities – each owner must pay the local property tax on each unit held. One final small exception: for sales in viager, it is also the owner.

How is property tax calculated?

The calculation is similar to that of council tax; the final result will mainly take into account the property category as well as its weighted surface area. The latter will notably depend on other criteria such as its location, its use, its size and of course its condition. To conclude, all these elements will give the cadastral rental value.

Where and how to challenge property tax?

First, you should know that for new-build properties, you are exempt from property tax for the first two years. People with disabilities, over 75 years old, or who are recipients of ASPA, ASI or AAH are also exempt. If you sell a property during the year and your profile matches one of those mentioned above, you will still have to pay this tax because it is the date of 1st January that counts. Administrative updates sometimes take time, so do check the following year. For any challenge, please contact your local tax centre but remember that it is necessary to pay the amounts demanded otherwise you will incur a 10% surcharge. You can send a letter to the address shown on your tax notice or more simply contact the complaints service on the impots.gouv.fr website.