The updated development tax scale for the year 2024, based on the construction cost index recorded in the third quarter of 2023, shows an increase of about 3.2%. The new rate is still synonymous with recession after increases of 8% in 2023 and 7% in 2022.
Development tax is paid to the Directorate General of Public Finance (DGFIP). The tax service then pays it back to the municipality and the department concerned. This is a tax that is mainly used to finance public facilities, including networks and roads necessary for future construction and development, the official administration explains.
This tax is levied on all construction, reconstruction, extension of building, development or installation work (such as outdoor car park, swimming pool, wind turbine, camping pitch) or in the event of change in the nature of exemption. Premises are subject to tax in premises (for example, conversion of agricultural premises to housing).
Taxes are honored after urban planning authorization, particularly with the delivery of a building or development permit or prior declaration of works. Tax is also payable in case of construction or development without authorization or in violation of authorization.
How to Calculate Development Tax
You should first know that development tax is related to constructions of more than 5 m² with a ceiling height of more than or equal to 1.80 m. Then, to determine the value of the project, it is necessary to refer to the annual reference values per m². Thus, in 2024, it will increase from 886 euros to 914 euros per m² in these provinces and from 1,004 euros to 1,036 euros per m² in Ile-de-France. A simple multiplication then gives the cost of the project.
This amount is then multiplied in two separate operations by rates set by the municipality (varying from 1% to 5%) and by the department (not exceeding 2.5%). Addition of the two results will form the amount of tax to be paid. Note that this calculation is carried out on the basis of the information provided by the Regional Divisional Directorate for undertaking the project by the applicant to whom the tax notice is notified within six months after the issuance of the requested administrative authorization.
Please note that certain developments benefit from flat-rate taxation such as tents, caravans and mobile leisure homes (3,000 euros per pitch), light leisure homes (10,000 euros), swimming pools (250 euros per m²), wind turbines. 12 meters (3,000 euros) and photovoltaic panels on the ground (10 euros per m²). For parking areas, for which preliminary planning permits were issued from January 1, 2024, the values per space are increased to 3,000 euros with a ceiling of up to 6,000 euros.
Projects benefiting from reductions or exemptions
Additionally, certain projects may benefit from a reduction of 50% on fixed values. This applies to the first 100 m² of the main residence and its annexes, residential or assisted living spaces, premises for industrial or artisan use and their annexes, warehouses and hangars not open to the public. Subjected to commercial exploitation and, finally, covered. Parking lots are subject to commercial exploitation. Automatic and permanent exemptions are also granted to certain projects, including constructions up to 5 m², reconstruction, agricultural farms or cooperatives, equestrian centers and social housing.
