BOOK VI: FINANCIAL AND ACCOUNTING PROVISIONS

Any creation or extension of powers resulting in an increase in the burden on local and regional authorities shall be accompanied by the necessary resources determined by law.

The costs corresponding to the exercise of transferred powers are subject to an assessment prior to the transfer of said powers. Any new burden falling on territorial authorities as a result of the State modifying, by regulation, the rules relating to the exercise of transferred powers is compensated under the conditions provided for in article L. 1614-1. However, this compensation only applies to that part of the cost which is…

The amount of expenditure resulting from increases and decreases in charges is established for each local authority by joint order of the Minister for the Interior and the Minister for the Budget, following the opinion of the consultative commission on the assessment of charges of the Local Finance Committee, under the conditions defined in article L. 1211-4-1. The consultative commission referred to in the previous paragraph draws up for Parliament,…

The commission mentioned in the first paragraph of article L. 1614-3 notes the changes in costs resulting from the creation or extension of competences or from legislative modifications to the conditions for exercising transferred competences, and records them in the balance sheet mentioned in the same article L. 1614-3. When they concern powers exercised by the regions or departments, changes in these costs are recorded for each local authority.

The costs referred to in article L. 1614-1 are compensated by the transfer of State taxes, by the resources of the Fonds de compensation de la fiscalité transférée and, for the balance, by the allocation of a general decentralisation grant. The beneficiary local authorities are free to use the general decentralisation grant and the resources from the Fonds de compensation de la fiscalité transférée, which are entered in the operating…

At the end of the period referred to in Article 4 of the loi n° 83-8 du 7 janvier 1983 précité, transfers of State taxes represent at least half of the resources allocated by the State to all local authorities. Losses of tax revenue resulting, where applicable, for departments or regions, from the modification, subsequent to the date of transfer of the taxes and due to the State, of the…

The joint order of the Minister for the Interior and the Minister for the Budget recording either increases or decreases in charges pursuant to the provisions of article L. 1614-3, or losses of tax revenue pursuant to the provisions of article L. 1614-5, shall take place within six months of the publication of the legislative or regulatory provisions to which it relates.