3. ASSESSMENT OF TAX
(a) COMPUTATION OF TAXABLE INCOME AND ABATEMENTS
The taxable or cadastral income (revenu cadastral) from land and buildings is determined by the competent authorities on the basis of an expert survey. It represents the ordinary average net income for one year — i.e., the gross income less the following deductions for upkeep, repairs, etc. —one-fifth in the case of buildings; one-tenth in the case of land.
The cadastral income is established by comparison with property of the same nature and similar yield situated in the same commune or in certain neighbouring communes selected as typical. The expert survey is made with due regard for the rent or for sale price and average rental value. If the taxpayer does not agree on the income ascribed to his property, the Administration and taxpayer may submit to arbitration of a third party, from whose decision there shall be no appeal, except on grounds of some material error.
Cadastral incomes are determined for a period of ten years.2
noteIn each commune or cadastral section of commune, a yearly revision may, however, be made of the cadastral income of standard types of properties (immeubles-types) of each of the two categories (buildings and lands) or of one of the two categories only. If, for a category, the average of the revised income is greater or less, by at least 10 per cent, than the average of the income assessed for the current year, the cadastral income of all the parcels of the category may, by virtue of a Royal Decree, be reduced or increased by the same proportion as from the following year.
Revision is effected when an explanatory request is made before July 1st by the mayor or by a group of proprietors owning at least 10 per cent of the total number of the parcels of a category registered in the Cadastral Record. Revision may also be made by order of the Minister of Finance.3
note(b) COMPUTATION OF TAX AND DEDUCTIONS
The tax rate is fixed at 7 per cent.4 The provinces and communes may levy “additional centimes” on the tax thus computed.
noteReductions1
noteReductions of tax are allowed, on request, to heads of families numbering at least three children; this reduction amounts to 7 per cent for each child dependent upon the taxpayer on January 1st of the fiscal year, but it may not exceed 200 francs per child.
Further, seriously disabled ex-servicemen may obtain a reduction of one-fifth of the tax levied on the house or part of the house they are occupying.
Finally, a reduction of one-quarter is allowed, on request and under certain specified conditions, in respect of houses occupied solely by the owner.2
noteAn exemption or reduction of this tax may also be granted in proportion to the difference between the cadastral income of buildings and the actual income derived from them during the fiscal year, provided this difference amounts to at least 10 per cent of the real annual income.