If they wish they could even doing nothing

Not content to have deleted the professional tax, Nicolas Sarkozy is facing a second dangerous reform to local communities: revision of rental values, which determine the level of local taxes (property tax, tax, etc.) with the "standing" of each housing. A meeting was scheduled, yesterday in the Elysee Palace, to fix the main outlines of the reform. The schedule is tight: the project should be transmitted to the Council of State next week, for the fiscal year end collective integration.

Also technical and the removal of the tax professional, but politically more explosive because it concerns all households, the reform is intended to make more accurate local taxes. It would be, basically, as many losers as winners, according to simulations of Bercy. For example, the tax would be reduced for taxpayers who purchased housing in the 1970s, still regarded as new. It would be increased for those having rehabilitated former, qualified housing wrongly obsolete. The increase could reach up to 50 of the tax paid, over several years.

"The Viet Nam of Sarkozy."

In view of the complexity of the reform, it should apply only to the 3 million of commercial premises, as a first step (collective budget), and then private dwellings 40 million (finance 2011 law, for example).

The precipitation of the Elysee Palace, which began no consultation with local officials, surprised nonetheless: "This will be the Viet Nam of Nicolas Sarkozy," fears a Government Advisor.

In total, the reform will need to be sum zero in each commune. Clearly, it will not correct the inequalities between Neuilly and teal, but between the inhabitants of a city (see below). Therefore, local elected officials cannot hope to increase their immediate tax resources. But it is their objective in the medium term: "bases have become so unfair that we can no longer raise taxes;" "if they were more accurate, we would hesitate not to do so", admitted one of them.

Reform remains nevertheless dreaded by local elected officials. It is as Nicolas Sarkozy calls for a review according to the values of the market, which implies important transfers of charges between taxpayers.

Based on the selling price

The elect are completely opposite: "It would be too painful." "We want that values are reviewed by the Administration, which will help smooth the effects of the reform," said MP Gilles Carrez (UMP), also President of the local Finance Committee. "Politicians want a fairer system, but that is not too fair," regrets the project architect.

To avoid the discontent, the Elysee plans that the mayors themselves decide when to implement the reform. If they wish, they could even doing nothing. But they would then the responsibility of the tax unfairness. "It is quite Machiavellian on the part of Nicolas Sarkozy," storm an elected official. If they gave the green light, values would be reviewed at the change of owner, based on the selling price. The short term, two neighbours do therefore not pay the same tax. But this breach of equality would be acceptable from the point where it is provisional: If no sales were within a period of ten years, the owner should reassess its property itself, as the subject to the ISF. Equality would be then restored.