We invite our readers to discover the NEW UPDATE in our dedicated section: Selection of administrative court rulings. This edition incorporates the numerous decisions published during the months of July and August 2025These new features enrich the legal and tax analyses that are essential for professionals.
Key points of this update
Number of judgments recorded: over 50.
Sources : decisions rendered by the Administrative Tribunals (AT) between January 1er July and August 31, 2025.
Summary: The period analyzed confirms a highly structured body of case law (particularly faithful to the principles established by the 2017 reform), high standards for taxpayers (both in terms of evidence and reporting obligations), but also a few specific openings when the Administration makes a mistake in selecting the standard premises, incorrectly applies a coefficient, or when a protective reading of the texts is required (e.g., accounting method in the case of a partner subject to corporate income tax).
Industrial plants
Accounting method applicable to a real estate investment company leasing an industrial facility
The Administrative Court of Amiens (July 2, 2025, No. 2300940) considers that an SCI (real estate investment company) that owns an industrial building may benefit from the accounting method referred to in Article 1500, II, 2° of the CGI (General Tax Code). The SCI is primarily engaged in the rental of industrial buildings and, due to the presence among its partners of a company subject to corporate income tax, it is required to keep commercial accounts in accordance with Article 238. bis K of the French General Tax Code. As both legal conditions are met, the SCI is entitled to obtain the rental value assessment according to the accounting method.
- Educational decision on the relationship between the accounting obligations of SCIs and the accounting valuation method.
Maintaining industrial qualification despite outdated facilities
The Administrative Court of Châlons-en-Champagne (July 3, 2025, No. 2302689) considers that the presence of industrial facilities, even if they are dilapidated or unusable, is sufficient to maintain the application of Article 1499 of the CGI, as the original value of the equipment in any case exceeds the threshold of €500,000 provided for in Article 1500, I, B, 1 of the aforementioned Code.
- The judge confirms a substantive and strict approach to the classification of industrial establishments.
Original value of fixed assets enforceable against the taxpayer
The Administrative Court of Rouen (August 26, 2025, No. 2403325) holds that fixed assets must be recognized at their original value as recorded in the balance sheet, unless the company provides justification to the contrary.
- Strict application of Article 324 AE of Appendix III to the General Tax Code, with accounting remaining the primary reference.
Business premises
Building in disrepair but still standing
The Administrative Court of Nancy (July 4, 2025, No. 2202994) considers that a building damaged by illegal occupation does not present any structural damage and remains taxable as a built property.
- The judge confirms the restrictive interpretation of the concept of a state of disrepair (see also TA Caen, July 22, 2025, No. 2100578).
No change of use without declaration
The Administrative Court of Toulouse (July 16, 2025, No. 2401711) considers that the cessation of activity and the deterioration of the premises do not constitute a change of use and points out that, in this case, the changes were not reported.
- Classic application of Article 1406, I of the French General Tax Code.
No allowance for differences in maintenance and rejection of the distinction between fractions of ownership
The Administrative Court of Châlons-en-Champagne (July 3, 2025, No. 2201736) ruled that the clinic in question was not eligible for any reduction for state of repair. As the unrevised rental value had been determined on the basis of a standard premises corresponding to the same property, no difference in condition within the meaning of Article 324 AA of Appendix III could be taken into account. The damage cited is considered superficial and does not justify a reduction under Article 1517 of the General Tax Code. The Administrative Court also rejected the argument that certain parts of the building were used for non-commercial activities: these medical activities are part of the clinic's overall activity and do not constitute separate fractions that could be subject to a different discount rate.
- According to our information, this judgment was appealed to the Council of State, registered under No. 507 879. According to the appellant, it was incumbent upon the Administrative Court to verify whether the condition of the property had deteriorated between the date of its inclusion in the report and the tax year (even in the case of identical premises, such deterioration could justify either an adjustment or, failing that, a finding of a change in physical characteristics within the meaning of Article 1517 of the General Tax Code; however, by requiring structural deterioration or advanced dilapidation, the TA misinterpreted the law and distorted the facts). Furthermore, the applicant criticizes the TA for applying a single departmental discount coefficient to the entire clinic on the grounds that all its parts contributed to the overall activity (however, for buildings other than industrial establishments, the texts require the identification of fractions that may be used for different purposes, even in the case of joint operation; as the different areas of the clinic could be used for separate activities, they could, until 2016, be assigned different discount coefficients).
Standard premises suitable for use as a hotel and hypermarket deemed appropriate
The Limoges Administrative Court (July 11, 2025, No. 2401971) considers that the hotel type used for comparison is relevant, as the differences in location are offset by other advantages. As for the TA in Châlons-en-Champagne (July 18, 2025, No. 2301616), it considers that a hypermarket located in an area that is economically comparable to the property being valued constitutes a relevant standard premises and reduces the rate applied.
- The judge confirms that the suitability of a standard premises is assessed holistically, taking into account the balance of characteristics and the economic zone.
Increase in rental value justified due to the commercial attractiveness of the area
The Administrative Court of Châlons-en-Champagne (July 4, 2025, No. 2301052) considers that the premium applied to a store is justified by the attractiveness and accessibility of the peripheral commercial area.
- Economic location remains a determining factor in rental value.
Location coefficient not individually contestable
The Administrative Court of Nancy (July 4, 2025, No. 2203519) points out that the location coefficient set by the departmental commission cannot be challenged in individual disputes.
- Decision consistent with established case law on the limits of location disputes.
Location coefficient integrated into the floor plan
The Administrative Court of Grenoble (July 28, 2025, No. 2302413) allows for a coefficient of 1.15 to be taken into account in calculating the floor, notwithstanding the fact that this coefficient was set to take effect from a year after 2017.
- Application of the solution proposed by CE, November 13, 2023, nbones 474,735 and 474,736, Carrefour Real Estate Company and No. 474,757, Leroy Merlin Company.
Profitability confirmed for a training organization
As the applicant association did not demonstrate that it operated under conditions distinct from those of commercial enterprises, the Lyon Administrative Court (July 25, 2025, No. 2310485) confirms that it falls under the evaluation category «ENS2: for-profit educational institutions.».
- This decision illustrates the increased requirement to demonstrate, in concrete terms, conditions of operation that are distinct from those of the market in order to be recognized as a non-profit organization.
DEP2 category confirmed for a trading warehouse
The Administrative Court of Grenoble (August 5, 2025, No. 2300641) confirms the DEP2 classification and finds that the areas and weightings used are not validly contested.
- The nature of the activity takes precedence over all other considerations.
Inclusion of access ramps in the actual surface area and restaurant terraces evaluated as main surfaces
The Administrative Court of Versailles (July 11, 2025, No. 2304136) considers that access ramps to roof terraces constitute structures that must be included in the actual surface area. For its part, the Limoges Administrative Court (July 22, 2025, No. 2300283) considers that restaurant terraces are an integral part of the business and should be assessed as main areas.
- The judge points out that only the intended use of the land guides its valuation.
Ancillary office space: no reduced coefficient
The Administrative Court of Cergy-Pontoise (1er July 2025, No. 2305283) holds that ancillary office space contributes directly to the main use and cannot benefit from a reduced weighting in the absence of evidence establishing a lower value in use.
- New decision confirming the difficulty of obtaining a reduction for standard ancillary areas (see, similarly, TA Paris, 1er July 2025, No. 2205912).
Weighting of logistics docks at 1
The Administrative Court of Amiens (July 2, 2025, No. 2301797) considers that the loading docks and traffic lanes of a logistics warehouse have the highest utility value and should be assigned a coefficient of 1.
- The judge assesses the value in use according to the actual logistical function.
Vacancy not proven due to lack of diligence
The Administrative Court of Toulouse (July 15, 2025, No. 2303226) refuses a tax relief for vacancy (CGI, Art. 1389, I), due to insufficient evidence of steps taken to rent or renovate the property.
- Confirmation of the evidentiary requirement regarding involuntary vacancy.
Residential premises
Garages and parking lots taxable as built outbuildings
The Administrative Court of Grenoble (August 11, 2025, No. 2300590) notes that lots presented as «to be built» are in fact garages and a parking lot, as established by the notarial deeds.
- Authentic deeds retain decisive probative force for the classification of lots.
Assimilation of heating into central heating
The Administrative Court of Grenoble (August 5, 2025, No. 2300516) considers that a wood stove supplemented by electric convector heaters should be treated as central heating, which justifies the increase in weighted floor space.
- The judge confirms the broad interpretation of the concept of central heating systems.
Tax relief denied due to involuntary non-use
The Administrative Court of Lyon (July 25, 2025, No. 2401078) refuses the tax relief provided for in Article 1389, I of the General Tax Code, as the bankruptcy of the company responsible for the repair work does not demonstrate that the non-use of the part of the property in dispute was beyond the owner's control.
- The burden of proof regarding non-exploitation remains particularly high.
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Article written by:
Clément CARRAY - Expert in local taxation
A senior local tax consultant since 2009, Clément draws on his solid expertise to handle more than 100 assignments per year. He advises his clients on tax optimization and helps them implement appropriate measures.
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