Question 7495 — taxes and duties

Summary

In accordance with 1° of II of article 1408 of the general tax code (CGI), only accommodation establishments for dependent elderly people (EPHAD) which have the status of public assistance establishment are exempt from housing tax. Consequently, and in accordance with 2° of I of article 1407 of the said code, private EHPADs are subject to housing tax on common and administrative premises as well as, where applicable, on the accommodation premises of residents when the latter do not have the private provision of their accommodation, provided that these premises are not taken into account for the establishment of the property tax for businesses. Concerning the premises for which they have private use, retirees will benefit from the gradual abolition of the housing tax which will allow 80% of households to be exempt from it by 2020, when their net income is less than €2,400 per month. The Government wishes to reduce this tax which constitutes a heavy tax burden in the household budget. The amount of the tax will drop by 30% from 2018 and they will stop paying it in 2020. Regarding premises whose occupants do not have private enjoyment, article 6 of law no. 2017-1837 of December 30, 2017 on finances for 2018, resulting from amendment no. 1363 presented by the Government in the National Assembly, already allows private non-profit EHPADs to benefit from a relief equal to the sum of the exemption and relief amounts from which their residents would have benefited if they had been liable for this tax on January 1 of the tax year. Consequently, the EHPADs concerned remain subject to housing tax only on common and administrative premises and in the as they house high-income residents. Residents of these EHPADs who do not have private enjoyment of their accommodation and are therefore not liable to housing tax will thus be able to benefit from reductions and exemptions from this tax, through the establishment, which will have to deduct the amount of sums owed by the residents in return for the accommodation services.

Machine translation from French. The official text remains authoritative.

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