Budget 2020: senators attack real estate wealth tax

The Senate voted on Saturday a series of measures modifying the scope of the tax on real estate wealth, introduced last year to replace the solidarity tax on wealth (ISF). These amendments should however be removed by the National Assembly.

The senators also increased from 50,000 to 75,000 euros the ceiling for donations allowing a reduction in the tax on real estate wealth.

The right-wing opposition, which controls the Senate, has expressed its disagreement with the government. On Saturday, during the examination of the 2020 budget bill, the senators voted on measures modifying the scope of the real estate wealth tax (IFI).

Among them is the indexation of the subjugation and the IFI scale to the price index excluding tobacco, and therefore inflation. This indexation, which would only be “justice” according to the rapporteur LR Albéric de Montgolfier, would be accompanied “in return for a discount”.

Reductions for donations

The LR rapporteur, for whom the IFI is “a bad tax in its current form”, also submitted to his colleagues a reduction in the base of the IFI for non-tax residents. The government had previously issued an unfavorable opinion to these amendments. Gérald Darmanin, the Minister of Public Accounts, had also ruled that Albéric de Montgolfier wanted “to remove the IFI or reduce his base”.

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Senators were also interested in the possibility of reducing the IFI for donations. They raised the ceiling to 75,000 euros against 50,000 previously. The IFI’s capping calculation mechanisms have also been modified to allow capped taxpayers to benefit from tax reductions for donations.

75% exemption

The senators also adopted an amendment by the socialist Vincent Eblé in support of heritage. The measure exempts from 75% of the IFI the owners of historic monuments located in rural areas and in the Outremers, and was supported by his colleagues, against the advice of Secretary of State Olivier Dussopt, for whom this exemption creates “A new tax niche”.

These amendments are a message to the government. They should however be canceled by the deputies during the next stage of the parliamentary shuttle.

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