In a decision dated 10 May 2017, the French Supreme Court ruled that in case of construction operations, reconstruction or building expansion, the Local Equipment Tax (TLE now replaced with the “taxe d’aménagement”) should only be based on the increase of the net floor area.
This decision marks a reversal compared to a previous decision of the Supreme Court in which it has been ruled that every creation of surface was subjected to the TLE without any compensation between created surfaces and surfaces removed (CE 10 February 2006, n°277754, Equipment Minister vs. Mr. Claude X).
This decision, which is in line with the rules applicable to the office premises development tax (“taxe pour création de bureaux”) leads to harmonizing the rules applicable in urbanism taxation. To this extent, the transposition of this decision to the new “taxe d’aménagement” shouldn’t be contested by the tax authorities although an explicit confirmation is necessary to fully secure the regime applicable as for now.
- CE, 10 mai 2017, n°393485, ministre du Logement, de l’égalité des territoires et de la ruralité c/ SARL Gej Immo Thouars