Who doesn’t dream of being exempt from property tax? In Genilac in the Loire department (42), a town of 4,000 inhabitants, this is the case of a couple who opened a grocery store on March 9 on the site of an old media library. He was supposed to pay a property tax of 1,500 euros a year, but the mayor needs businesses in his town and decided to give him a helping hand.
It is the first time in 80 years that this village has a grocery store, and the mayor decided to encourage two franchisees of the Casino brand. The couple invested €125,000 in their brand new 115 square meter Vival minimarket and Casino provided them with equipment worth €20,000. The mayor owns the walls and allows the couple to save €1,500 a year thanks to an exemption from property tax, according to the Capital program broadcast on Sunday April 28 on M6. And this exception is not limited in time. “The building belongs to us. As such, in the case of a commercial lease, it seemed strange to us that the tenants should pay the property tax that the owners are responsible for. It’s a matter of principle. We also own a butcher shop located in town and tenants are also exempt from property tax.“, explains Mayor Denis Barriol, Figaro. And yet he realizes that he needs finance and “to be against the wind against abolition of housing tax. It is abnormal that only the owners pay for the equipment“, he adds.
In the case of a commercial lease, if the lease does not specify a specific clause, it is up to the lessor to pay the property tax, but the lease may stipulate that the tenant pays the property tax, according to Service-site.fr So here the lease stipulates that the property tax rests with the landlord. Help that spouses appreciate. “It’s written into the lease and therefore set in stone. Our economic model is fragile, any help is welcome. If we stay in a place for, say, ten years, that’s significant. (Editor’s note, profit 15,000 euros),” confides Loïc Montpert to Le Figaro. The town hall, the owner of the place, pays a rent of 1,200 euros including tax per month with a VAT rate of 20%. Encouragement for Laurence, a former ready-to-wear manager, and Loïc, a fast food manager for 20 years who left everything behind to become a grocer. Loïc and his wife also rent two other grocery stores in other villages, in Planfoy, 30 kilometers away, and in Marlhes, 15 kilometers away, but they do not have the benefit of property tax exemption in these villages.
It is not the first city to make a gesture in favor of traders. To support the merchants of the shopping center they own, the municipality of Sennecey-lès-Dijon (21) has decided not to collect property taxes in 2020 due to the health crisis. As stated, this exemption will increase to 50% in 2024. Public good.