worth knowing: house improvements and tax increase

[Clair]

I am planning to install several Velux windows and create a new room in my unconverted attic.

The size of the new room will depend on the amount of tax the new space would incur. (i.e how much is a 12m room tax compared to a 20m room tax? how much tax is a bathroom costing?)

I wanted to know how best to assess the potential increase and asked the Mairie if there was a scale (barême) I could look at.

They directed me to my Centre de Impôts and I have found out that I can request a simulation of my Taxes Foncières according  to what changes I propose to make.

Best to have all the facts in hand before starting the works.

Along the same lines, I also found out that the géomètre du cadastre goes travelling round the département noting all external changes to properties (new Velux, pool, conservatory...) in order to update the tax records on properties...

The géomètre cannot enter the premises to check internal

changes, although if there is a Velux visible, he will assume there is

a room in the attic and follow it up...

Undeclared changes are checked with the Mairie and DDE and owners contacted to ask to justify the work and pay up if found at odds with existing records... That's when the infamous H1 form arrives through the post.

[Cassis]

That is interesting, Clair.  From reading other posts here it is not uncommon for people to 'forget' to fill in an H1 form so the extra bathroom or whatever only gets found out when the property is sold.

I'm surprised that alarm bells don't ring automatically at the Centre d'Impots whenever there is a completion of works requiring a declaration de travaux or permis de construire - is there no other liaison between them and mairies or the DDE, apart from what you mention here where the géometre notes external signs of changes?

I gather that if you voluntarily submit an H1 shortly after building work being completed then you may be exempt from any increase in taxe d'habitation (CORRECTION: taxe foncière) for 2 years.

[Clair]

I don't know about exemption, but a few weeks after my déclaration de travaux had been approved last year, I received a mildly threatening letter from the  Centre des impôts demanding to know what improvements I had made to the property and why they had not been notified and did I know I risked a fine of €€€ and whatever...

I had added an above-ground pool, (technically removable, so not liable to any increase in taxe foncière) and on speaking to the centre de impôts to clarify the situation, I was told that the DDE automatically sends them a copy of ALL déclarations de travaux and ALL permis de construire.

If this is the case, it's no wonder so many internal jobs never get declared...

In this instance, I was asked to complete an H1 form, which (unfortunately?) lead to the official notification of the central heating in the house (which the previous owner had never declared) and a rate increase. Luckily, I was not asked for any back tax for previous years, which I understand could have been reclamed from me from date of ownership of the property.

At least I know what has been declared and I have received this morning a H1 form marked simulation which should enable me to assess the size of the proposed attic conversion.

All in all, youd think it would be simpler to ask all new owners to complete a H1 form as part of the property purchase, to enable the centre de impôts to chase the previous owner for any undeclared improvement to the property... It's probably too simple...!

Going back to your exemption bit, I would be interested in knowing more about this. Can you supply any link to an official site confirming that?

[Cassis]

I think I read the 2 year exemption note buried in the H1 form small print.

Yes, back page.

The note says "les constructions nouvelles affectées à l'habitation peuvent bénéficier d'une exoneration totale de taxe foncière pendant deux ans ...."

In brief, it then says that one should declare all new constructions, alterations and changes of use to the CdI within 90 days of completion.  In so doing you get 2 years where you are exonerated the taxe foncière (not taxe d'habitation as I originally posted).  If you don't then you lose this exoneration and have to make up the difference if and when the CdI finds out, plus a possible fine.

[Clair]

Found it!

My understanding of the exemption rule is that

1. it applies to new build (constructions nouvelles, not changement de circonstance ou d'affectation)
2. it may not apply as the commune may have cancelled it