Abolition of the housing tax: green light of the National Assembly

The National Assembly validated the removal of the housing tax on primary residences for 80% of households in 2020, and 100% in 2023.

It was a campaign promise of candidate Macron. On Friday, 18 October, MEPs adopted Article 5 of the 2020 draft budget, which abolished the housing tax by 34 votes to 20, with 2 abstentions. "Promise held" welcomed Secretary of State Olivier Dussopt.

Begun this year, the abolition of the housing tax will continue, and 80% of households currently taxed will be totally exempted in 2020, for a gain of 3.7 billion euros in purchasing power. For the remaining 20% ​​of households, the abolition of this tax will be spread over three years, until 2023.

An ill-prepared electoral promise

If the majority supported the measure, right and left were against, judging the municipalities injured. The abolition of the residence tax is "an electioneering promise of the president, poorly prepared", which will result in "a break between the citizen and his commune" , denounced Christine Pires-Beaune (PS). Eric Woerth (LR) accused the government of "nationalizing local taxes".

The abolition of this tax, currently the main tax revenue of municipalities, will be compensated "to the euro", the government pledged. It is planned for them to draw on the share of revenue from the built land tax, about 15 billion euros annually, returning to the departments so far. These will be paid back a portion of the VAT.