Calculating the rental value of commercial premises: opportunities to file a claim
As part of the review of assessed values, lawmakers have adopted various mechanisms to smooth out increases in property taxes and the CFE for taxpayers.
Among these measures was, in particular, the “planchonnage” provision, set forth in Section III of Article 1518 A quinquies of the General Tax Code, which provided:
to increase the revised rental value by an amount equal to half the difference between the unadjusted rental value as of January 1, 2017, and the [revised] rental value, when that difference is positive;
to reduce the revised rental value by an amount equal to half the difference between the unadjusted rental value as of January 1, 2017, and the [revised] rental value when that difference is negative.
administration applied this provision, concluding that the revised rental value to be taken into account was the value revised for the year 2017 and not the value revised for the current year.
In a decision dated November 13, 2023 (CE, 8th and 3rd Ch., Nov. 13, 2023, No. 474735 et seq., Lebon T.), the Council of State ruled thatadministration interpretationadministration incorrect. However, property taxes and the CFE (Business Property Tax) for business premises were assessed for the years 2023 and 2024 based onadministration erroneous interpretation. This erroneous interpretation is generally unfavorable to taxpayers.
In the 2025 budget law, lawmakers adopted a provision that prevents the filing of claims for reimbursement of overpayments.
Yesterday, the Council of State referred a preliminary ruling on constitutionality (QPC) to the Constitutional Council, challenging the constitutionality of this validation law (CE, 8th and 3rd Chambers, Sept. 17, 2025, No. 506083, unpublished).
It may therefore be advisable for taxpayers who own business premises to file appeals, at a minimum, regarding property taxes and the CFE for the year 2024. A litigation-based approach could potentially justify filing appeals for the year 2023.
It is also likely that the delayed passage of the 2025 budget law ledadministration to calculate property taxes and the CFE on incorrect bases. Claims may also be filed for this year.
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