While property tax rates remain unchanged in the Montpellier Metropolis, the surge in tax notices alarms owners. An increase of 7.5% on average is mainly explained by the increase in tax bases and the considerable impact of certain additional taxes such as the TEOM and the Gemapi tax. Despite stabilized inflation, these tax adjustments illustrate a complex economic and political context, requiring an in-depth understanding of local decisions.
An increase caused by recalculated bases
Despite the absence of changes in the municipal rates, households will see a notable increase in their property tax in 2024. The main factor lies in the increase in tax bases. The latter increased by 3.9% this year, marked by a period of inflation between 2022 and 2023. The base is calculated according to the harmonized consumer price index of INSEE. So, even without changing the rates, property taxes rise.
Impact of additional taxes
Increase in TEOM
Another reason for this increase concerns the Household Waste Removal Tax (TEOM). In the Montpellier metropolis, the TEOM increased significantly from 12.35% to 14.62%. This changing rate, specific to each community, increases the tax burden on taxpayers and is inevitably reflected in their tax bill.
Effect of the Gemapi tax
Likewise, the tax for the management of aquatic environments and flood prevention, the Gemapi tax, is a contributing factor. Its expected tax revenue jumped from 8 million euros in 2023 to 13 million euros in 2024. It is not a rate but a sum fixed in assembly, which implies a distribution calculated by the tax authorities, but an increase sensitive for residents.
Political and economic considerations
The increase in property taxes is also rooted in political issues. Political criticism is raised in the face of this “additional cost” and the more exhaustive financial management of the metropolitan community. Opinions differ on the use of resources, with some elected opposition officials highlighting the weight of the Metropolis’s debt and investments that they consider proactive.
Anticipations for 2025
While 2024 proves difficult for owners’ finances, the forecast for 2025 continues to be at the center of debate. Specialists agree on a slight deceleration, a potential increase of only 1.5% for the bases, to be confirmed in November. However, for local authorities, such as Montpellier, the property tax remains a crucial fiscal lever to keep their budgets balanced in the face of economic shocks.