Paris city hall wants to increase many taxes to complete a struggling 2021 budget

The health crisis has severely affected the city finances of Anne Hidalgo, who must adopt her 2021 budget on Tuesday.

Paid parking for two wheels, increase … The Paris town hall dreams of an increase in many taxes to complete its budget for 2021, with a debt of more than seven billion euros. “The context is new», Insists the Deputy (PS) for Finances of the mayor of Paris, Paul Simondon. “The bill for the Covid crisis for the City of Paris is 800 million euros“, He adds as the debate begins on the budget to be adopted on Tuesday.

The crisis resulted in a loss of “540 million euros in revenue»Linked to reductions in tourist taxes (45 million euros in 2020 against 95 million in 2019), contributions on the added value of companies, or even real estate transactions (the loss of transfer rights for payment, known as “DMTO, Amounting to 150 million euros in 2020), among others. Concretely on the real estate market, “At the end of the first period of confinement, the sales dynamic (…) has not fully recovered, even recording a drop of 14.57% between March and May 2020“, In comparison with the same period a year earlier, indicates the town hall.

In fine, on an annual budget of some 10 billion, the debt explodes and stands at 7.153 billion euros in 2020 after 6.1 billion a year earlier. She “is strictly correlated with the decisions taken to maintain economic activity, employment and solidarity, in particular in favor of the most vulnerable, during the health crisis“, Justifies the Town Hall. “Despite the impact of the crisis, the indebtedness of Parisians, compared to other large French cities, remains moderate», We assure, this year again, to the town hall of Paris. The horizon does not seem to brighten up: “We must make a budget with a much lower level of predictability“, Euphemistically the new assistant who was previously in charge of Cleanliness.

Two wheels, tourist taxes

The gradual elimination of the housing tax, which will affect 35% of Parisian households in 2021, will affect the resources of the City, which “will therefore receive only (…) 199 million euros, against 826 million»In 2020 thanks in particular to the housing tax on second homes.

To complete its budget, the Town Hall is counting on a significant upturn in tourism in the capital, an increase in the tourist tax, the housing tax on second homes … And to win the case, the mayor PS from Paris, Anne Hidalgo, wrote to parliamentarians.

The request was for DMTO, “reduce them from 4.5% to 4.8%“, The housing tax”for second homes, reduce them from 60% to 100%“, And the tourist tax”on tourist rentals on AirBnb-type platforms», Specifies Paul Simondon. In the viewfinder, also, the establishment of paid parking for two motorized wheels. “The use of public space to store a two-wheel type vehicle free of charge no longer seems relevant to us.“, Estimated the elected.

The town hall of Paris presents “un budget insincère», «irresponsible“: she “spends his time writing to all deputies, all senators, all group presidents to ask them to present amendments that would increase taxes on Parisians“, Strangled Marie-Claire Carrère-Gee (LR). As proof of this, she relies on the City’s forecasts concerning the “tourist tax revenue at the level of 2019: these bases are false!“, The right-wing elected representative once again protested, doubting a resumption of tourism. “When we complain about the end of the dynamism of the CVAE (contribution on the added value of companies), the level of equalization, the end of the housing tax … Are we really facing a mayor? socialist?“, Laughs at the elected Modem, Maud Gatel.

SEE ALSO – Anne Hidalgo welcomes the recovery plan and calls on the government to provide a plan for local communities

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