The mayor of Paris is looking for solutions to replenish the coffers. Paid parking for two wheels, increase in tourist tax on Airbnb-type platforms… Anne Hidalgo dreams of an increase in numerous taxes to complete her budget for 2021, with a debt of more than seven billion euros.
“The context is new”, insists the Deputy (PS) for Finances of the Mayor of Paris, Paul Simondon. “The bill for the Covid crisis for the City of Paris is 800 million euros”, he adds as the debate begins on the budget to be adopted on Tuesday, November 17.
Falling real estate sales are driving down revenue
The crisis resulted in a loss of “540 million euros in revenue” linked to reductions in tourist taxes (45 million euros in 2020 against 95 million in 2019), contributions on the added value of companies, or even real estate transactions (the loss of transfer rights for payment, known as ” DMTO ”, amounting to 150 million euros in 2020), among others. Prices, trends, advice: all you need to know about real estate in Paris and Ile-de-France
Concretely on the real estate market, “At the end of the first period of confinement, the sales dynamic (…) has not fully recovered, even recording a drop of 14.57% between March and May 2020”, in comparison with the same period a year earlier, indicates the town hall.
“The debt of Parisians remains moderate”
Ultimately, on an annual budget of some 10 billion, the debt explodes and stands at 7.153 billion euros in 2020 after 6.1 billion a year earlier. She “Is strictly correlated with the decisions taken to maintain economic activity, employment and solidarity, in particular in favor of the most vulnerable, during the health crisis”, justifies the Town Hall.
“Despite the impact of the crisis, the indebtedness of Parisians, compared to other large French cities, remains moderate”, ensures, this year again, the town hall of Paris.
The horizon does not seem to brighten up: “We have to make a budget with a much lower level of predictability”, euphemizes the new deputy.
The town hall is betting on increasing certain taxes
The gradual elimination of the housing tax, which will affect 35% of Parisian households in 2021, will affect the resources of the City, which “Will therefore only perceive […] 199 million euros, against 826 million “ in 2020 thanks in particular to the housing tax for second homes.
To complete its budget, the Town Hall is counting on a significant upturn in tourism in the capital, an increase in the tourist tax, the housing tax on second homes … And to obtain success, the mayor PS from Paris, Anne Hidalgo, wrote to parliamentarians.
The request was for DMTOs, “Reduce them from 4.5% to 4.8%”, the housing tax “For second homes, reduce them from 60% to 100%”, and the tourist tax “On tourist rentals on AirBnb-type platforms”, specifies Paul Simondon.
Paris against Airbnb, the fight continues
In the viewfinder, also, the establishment of paid parking for two motorized wheels. “The use of public space to store a type two-wheeled vehicle free of charge no longer seems relevant to us”, estimated the chosen one.
The opposition criticizes the “irresponsible” budget of the mayor
Paris City Hall presents “An insincere budget”, “Irresponsible” : she “Spends his time writing to all deputies, all senators, all group presidents to ask them to present amendments which would make it possible to increase the taxes of Parisians”, strangled Marie-Claire Carrère-Gee (LR).
#ConseildeParis @MCCG recalls that this year 2020 has been a nightmare for the Parisian economy and denounces a… https://t.co/v1DPe0RyXL
She relies on the City’s forecasts for “Tourist tax revenue at the level of 2019: these bases are false!” “, the right-wing elected representative again rose up, who doubts a resumption of tourism.
“When we complain about the end of the dynamism of the CVAE (contribution on the added value of companies), the level of equalization, the end of the housing tax … Are we really facing a socialist mayor? “, mocks the elected MoDem, Maud Gatel.