The leader of the LR opposition in the Paris Council, Rachida Dati, accused the town hall on Wednesday of “exploding the amount of property tax” imposed on taxpayers. “The City of Paris has decided to suddenly increase the tax burden, by exploding the amount of the property tax”, criticized Wednesday in a press release from her group “Changer Paris” the mayor of the 7th arrondissement.
In Paris, the tax was increased by the town hall by 51.9%, in addition to the automatic and national increase of 7.1% due to inflation. Its rate, which rose to 20.5% after remaining at 13.5% for a very long time, remains very low at the national level.
Nicolas Sarkozy’s former Keeper of the Seals denounced an “average 62%” increase, which she attributes to the fact “that the city fills recurring financing needs each year linked to its inability to manage public finances”. Rachida Dati assesses the amount of the debt of the City of Paris at 10 billion euros.
Hidalgo blames the state
Asked on LCI this Wednesday about the budget of the City of Paris, the mayor, Anne Hidalgo, assured that she was conducting “extremely prudential management”: “The City of Paris is a well-managed city,” she said.
With an amount of the global operating grant (DGF) paid by the State which fell from 930 million euros in 2015 to zero in 2023, the cabinet of Anne Hidalgo denounced to AFP a “drying up of the City of Paris”, regretting “a colossal amount that had to be found”.
Increase the tourist tax?
“So that cities are also interested in the attractiveness they create”, Anne Hidalgo proposed the increase of “a tax which will be painless for the French: the tourist tax” on tourist nights.
This tax, governed by the General Code of Local Authorities, is based on a scale setting prices, floor and ceiling, depending on the type of accommodation. In 2023, a municipality can levy up to 4.30 euros for one person and one night in a palace.
The socialist mayor of Paris asked to move to “a percentage […] if only 5% on luxury hotels”.