When it comes to putting its accounts in balance, it seems Paris will stop at nothing. According to information from Capital.fr, the Mayor of Paris, Anne Hidalgo, would like to go even further to curtail the city’s problem of cold beds (furnished second homes that are not rented on either a short or long term basis).
In the last seven months Hidalgo has already raised the tax on such homes by a staggering 20% and will soon propose further ideas at the forthcoming budget policy debate.
“If the Council of Paris deems it a valid principle, a study will be launched, and then we will meet the government to see to what extent an amendment allowing communities to raise the tax rate can be included in the Budget,” she explains. Even if it has not yet been confirmed, this “principle” may well make some noise in the industry.
But what sort of increase could we expect? Put in effect from this year, the 20% surcharge on second homes was designed to encourage owners of vacant property to sell or to put them on the rental market of rental. Most think that this has had no effect, so it is possible that an increase of 30% to 40% could be on the cards.
Of course the real issue may not be the amount of tax itself, rather who is allowed to impose it. Figures from earlier this year show that only 98 municipalities out of a possible 1200 across France chose to apply the 20% increase in council tax for such properties.