The development tax is a type of tax that concerns all buildings that require planning permission. This local tax was created in March 2012 and includes several different taxes. It is the local authorities that collect this tax, the amount of which is set according to certain criteria. Wondering who is affected by this tax and how to calculate it? Find all the answers here.
Areas concerned by the housing tax
For the payment of the housing tax, certain built-up areas in particular are concerned. We’re talking here about ” taxable area which is actually the sum of the surfaces of the spaces with walls and ceiling. The surface in question must be greater than 5 m2 and have a height from 1.80 meters for the ceiling. It is not only living spaces that are concerned in the calculation of the taxable area.
Garages or even garden sheds, whether they can be dismantled or not, are also taken into account in terms of development tax. Buildings that do not have walls or ceilings such as terraces and pergolas are not part of the taxable area. Swimming pools are also not taken into account in the taxable area. However, they are subject to a certain tax on a flat-rate basis.
How to calculate the development tax?
When the taxable area is known, it becomes rather simple to determine the tax. To obtain it, simply multiply the taxable area by the lump sum. The result obtained will then be multiplied by the rate which will have been set by the local authority. Indeed, the freedom is granted to each local authority to set its own rate while respecting the thresholds imposed by law.
This rate is generally between 1% and 5%, and may well increase in some cases. At the departmental level, it is a single rate which does not exceed 2.5% while that of the regional share does not exceed 1%.
Development tax: how to declare and pay it?
After setting up your construction project, it is important to make a declaration of the taxable area.
You must include all the information needed to calculate the tax. The declaration must be made at the same time as you submit the authorization request town planning. Part of the form you will receive concerns the taxable area. With regard to the amount of the development tax, it is the Departmental Direction of the Territories (DDT) which determines the precise amount.
Its payment also has a relationship with the planning permission you have. The beneficiary of the authorization relating to the work will be kept informed by the administrative department in charge of it. The notification is made by letter after verification of the calculation. When the work permit is issued, you must pay the tax in two equal parts. For a fee whose amount is less than 1500 euros, payment is made in one go.