The Bulletin Officiel des Finances Publiques-Impôts (BOFiP-Impôts) has just been significantly updated on December 30, 2024 to take into account, in particular, a number of case law rulings - including the now famous SA GKN Driveline - concerning the permanent exemption from property tax on built-up properties applicable to machinery and other installations and equipment used by industrial establishments. Other far from negligible changes have also been made. It should be noted that the Bulletins Officiels des Impôts (BOI) affected by these modifications are indicated by the Direction générale des finances publiques with the mention " Urgent publication ".
Incorporation of the SA GKN Driveline case law and subsequent developments in the BOFiP-Impôts
The BOI-IF-TFB-10-10-10, BOI-IF-TFB-10-10-20 and BOI-IF-TFB-10-50-30 draw the consequences of thedecision in principle SA GKN Driveline issued on December 11, 2020 by the Conseil d'Etat (CE, Plenum Fiscale, December 11, 2020, No. 422 418) by recalling :
- improvements forming part of a building taxable under articles 1380 and 1381 of the CGI (BOI-IF-TFB-10-10-10No. 150, and BOI-IF-TFB-10-10-20, n° 1) ;
- that, in application of article 1382, paragraph 11, of the same Code, the following assets are exempt from this tax: tools, other installations and equipment used in the operation of an industrial establishment, i.e. these assets:
1) which are part of an industrial establishment as defined in article 1499 of the CGI,
2) who are specifically adapted to the activities likely to be carried out in such a facility and
3) which are not among the items mentioned in 1° and 2° of article 1381.
With regard to the second condition mentioned above, the new doctrine usefully specifies, on the basis of a ruling no. 450 247 handed down by the Conseil d'Etat on June 23, 2022, that the assets in question must be specifically adapted to the activities likely to be carried out in the premises. a even if they are not specifically adapted to the industrial activity carried out on the site. thein which they are located.
By way of illustration, the new doctrine also cites a number of Conseil d'Etat rulings admitting or refusing the benefit of the exemption. Four decisions are cited assets qualifying for exemption :
- a stop nbones 48 247, 55 568, 62 767, 68 326, 69 713, 70 403 du 25 juin 1986 concernant les tours de distillation, les fours, les échangeurs, les unités spécialisées et les installations de vapocraqueurs d'une raffinerie ;
- judgment no. 432 786 of April 16, 2021 concerning an electrical transformer, a low-voltage switchboard and its supply cables that meet the specific needs, particularly in terms of power, of an establishment specializing in metal treatment and coating;
- decision no. 452 216 of July 25, 2022 concerning the settling tanks, reed bed and electrical installation of a waste sorting and landfill center;
- a ruling no. 456 646 dated December 16, 2022 concerning the filter ditch and scraper yard, as well as the site lighting and electrical distribution systems used for night-time unloading at a facility specializing in port handling.
On the other handcases of goods not eligible for this exemption are illustrated by the following decisions of the High Court:
- two rulings handed down on April 16, 2021 under nbones 436,000 and no. 438,215 concerning interior blinds with slats or rollers, a heating and air conditioning system, an anti-scaling system and fire detection and protection systems for a warehouse specializing in the wholesale of fruit and vegetables;
- Ruling no. 453 025 of July 25, 2022 concerning the costs of discovering and closing a quarry;
- Ruling no. 456 646 of December 16, 2022, concerning fixed assets relating to access gates to an establishment specializing in port handling, which are not specifically adapted to the activities likely to be carried out in an industrial establishment, even though they contribute to them.
Other changes to the BOFiP-Impôts
Overhaul of the administrative doctrine relating to facilities intended to shelter people or goods and to storage facilities
With regard to installations intended to shelter people or goodsthe new wording of the BOI-IF-TFB-10-10-20No. 20, now refers to a judgment in case no.bones 463,325, 464,485 and 465,193 handed down on October 13, 2023, in which the Conseil d'Etat ruled that a temporary installation, made up of modular units that can be dismantled and reused, constitutes an installation intended to shelter people, having the character of a construction constituting built property taxable under the provisions of article 1381 of the CGI, insofar as the units in question cannot be considered, given their characteristics, as intended to be moved.
With regard to storage facilitiesn° 30 of the same BOI has also been rewritten to take account of two rulings handed down several years ago by the Conseil d'Etat, the first of which held that large, adjoining storage structures, made up of aluminum section frames covered with tarpaulins and posts anchored to the ground, must be subject to property tax on built-up properties in view of their size, use and technical characteristics, even though they can be dismantled and are not intended to be moved (CE, December 23, 2010, no. 326 049), while the second ruling held that low-capacity gas tanks that are light, easy-to-move equipment rather than permanent structures do not fall within the scope of property tax on built-up properties (CE, March 24, 2006, nbones 267 393 à 267 399).
But the major highlight of this update is undoubtedly the new elimination of administrative tolerance which, as a practical rule, excluded storage facilities with a capacity of less than 100 m from the scope of application of the property tax on built-up property3.
Exclusion from the exemption provided for in article 1382, 11° of the CGI for large tanks and basins at wastewater treatment plants.
The BOI-IF-TFB-10-10-20The ruling by the Douai Administrative Court of Appeal (Cour administrative d'appel de Douai) in case no. 40, which extended the exemption from property tax on built-up properties provided for in 11° of article 1382 of the General Tax Code to all tanks and basins used in wastewater treatment plants (i.e. regardless of their size), has been amended following a ruling by the Douai Administrative Court of Appeal (CAA Douai, April 23, 2019, nbones 16DA01285 and 16DA01293), handed down more than a year before the landmark ruling SA GKN Driveline cited above. The Court in fact excluded from the exemption these installations, which were considered, with regard to their characteristics (in this case, basins with diameters ranging from 6.5 m to 32 m, with wall heights ranging from 4 m to 6 m, for capacities ranging from 555 m3 and 4,150 m3These are not considered as real constructions within the meaning of 1° of article 1381 of the General Tax Code.
It should be remembered that when the French tax authorities have given their interpretation of a text, it is necessary to refer to the date of the taxable event in order to assess which doctrine is in force. ratione temporis. In this particular case, the new doctrine is therefore applicable to taxes levied on from 1er january 2025.
Exemption for wind turbine masts
Wind turbine masts are now exempt from property tax on built-up properties and business property tax, regardless of how they are designed (Law no. 2023-1322 of December 29, 2023, Finance Act for 2024, art. 142). These provisions apply as of December 1.er January 2024, to all wind turbine masts, regardless of when they were installed.
Clarification of certain exemptions
Lastly, various clarifications have been provided on the scope of the property tax on built-up properties and on some of its exemptions, in particular the exemption for fixed assets used to produce electricity from photovoltaic sources (CGI, art. 1382, 12°.).
Article written by:
Clément CARRAY - Local tax expert
A senior consultant in local taxation since 2009, Clément draws on his solid expertise to handle over 100 assignments a year. He advises his clients on tax optimization and helps them implement the appropriate measures.
Our tax consultants offer support throughout your real estate and restructuring investments (assistance with tax returns, budgeting, development tax, archaeological tax, etc.) to ensure that your local taxes are secure. You need solid, reliable cash management to enable your business to grow: our financial performance division, made up of tax consultants backed by expert lawyers, is dedicated to securing your tax environment through a high level of expertise and personalized support.
Newsletter
Keep up to date with the latest local tax news.
Subscribe to our newsletter.
