In Toulouse, the hefty bill for the increased development tax
The increased development tax, which applies to each construction or extension, has been generalized to the entire territory of the municipality of Toulouse and its rate increased to 20%.
If the commitment to fiscal stability has been respected by Jean-Luc Moudenc since his re-election in 2020 to the Capitol and to the Metropolis, the promise did not relate to an additional tax, the planning tax which, in fact, strongly increased since January 1, 2022. The elected officials of Toulouse Métropole, whatever their political sensitivity, voted on the terms of this measure during the metropolitan council of October 17, 2021.
The development tax is paid by individuals and professionals, such as developers, during the construction of a dwelling or during an extension, garage, swimming pool, basement… Garden sheds of less than 20 m2 being exempt since 2020 in Metropolitan France. This tax can be increased when the city, under the pressure of its demography, has to build roads, equipment, etc. This was the case, in Toulouse, since 2011, in certain sectors, such as Bouardel or Saint-Simon.
A generalized tax
During the October 2021 vote, the generalization of the increased development tax to all of Toulouse was adopted. As well as a new rate which goes from 5%, rate of the development tax, or 16%, rate of the TAM, to 20% for everyone. Consequence: a salty levy to be paid after the construction site sometimes at a time when the individual’s portfolio has already been solicited.
The rate of 20% thus brings, according to our simulations, this tax to nearly €10,000 during the construction of a detached house of 90 m2 with two car parks. At more than €16,000 for a 130 m2 detached house with two parking spaces; €37,000 for a 120 m2 detached house with basement, two parking spaces and a 40 m2 swimming pool. And at €8,700 an extension to a 50 m2 house.
In business areas, a 15% TAM rate is applied. This represents significant sums for an office builder. Example: €1.7 million for 10,000 m2 of offices.
In addition, TAM perimeters existed in other municipalities of the Metropolis, at a different rate. Others were added during the 2021 vote in Pibrac, Saint-Orens and Seilh.