Wealth tax and property tax : FNAIM reacts

While the tax on wealth (ISF) and the property tax will be reformed in 2018 by the new Government, Jean-François Buet, president of Fnaim, reacts. He believes that “the owners are once again stigmatized.”
In the perspective of the national Conference of the territories of July 17, next to the Senate, which will detail the reform of the tax exemption of dwelling and the transformation of the tax on wealth (ISF) wealth tax on the estate (IFIS) put in place as soon as January 1, 2018, Jean-François Buet, president of the national Federation of real estate held to respond in an op-ed published on July 11, 2017. “After a moment of floating (…), so it seems that the head of State wishes to finally actually implement his campaign promises”, points out Jean-François Buet.


However, “even if the Government promises to compensate fully with the local communities, the 10 billion euros of tax revenue they will receive more [of the fact of the exemption from property tax for 80% of households], let us not forget that the previous governments have shown to what extent the promises only bind those who hear them”, does it in the same forum.


“The local authorities compensate these reductions of resources by an increase of property taxes”


According to the chairman of the Fnaim, “what it is to be feared, it is that without being able to rely on these tax revenues, the local governments compensate for these decreases in resources by an increase in property taxes, while the weight of local taxes related to the property and the residence property is very unequally distributed on the French territory.”


“The taxation of real estate is still and always the adjustment variable of the State”
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That is why, the president of the Russian asks : “Why make them wear the cost of this measure, while 58% of the French are owners of their main residence, heritage of which they are legitimately proud of ?” These represent after him “often the variable adjustment of the fiscal needs of the State, while the latter should ensure justice and fairness in taxation.”


Finally, Jean-François Buet concludes that “it is also the same state of mind for the reform of the Tax of Solidarity on Wealth that does not take into account that the real estate in the calculation of this new tax IFIS.” And to drive the point home : “The owners are once again stigmatized… The government is behind the idea that this is to encourage investors to support the real economy.”

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