The departments fear that the abolition of the housing tax will be a major financial loss, jeopardizing their autonomy.
Relations do not improve between the government and local elected officials. The mayors are not the only ones to be exasperated by the abolition of the housing tax, the departments thus lose an important fiscal lever. And if the state has promised compensation via VAT, elected officials remain skeptical and will address this subject at their annual congress which begins Wednesday evening October 16. A meeting qualified as a crisis.
A shortfall estimated at 14.5 billion euros
“There we will lose fiscal autonomy. And we also have concerns for our financial autonomy ”, explains Frédéric Bierry, president of the Departmental Council of Bas-Rhin. He fears for the ability to intervene in colleges, child protection and road infrastructure, all managed by the department. From January 1, 2021, the State will transfer the property tax from the departments to the municipalities. A shortfall estimated at 14.5 billion euros.