Cyclical smoothing scheme for local government tax revenue (DILICO): €1bn set aside in 2025
Article 186 of the 2025 Finance Act creates a cyclical smoothing mechanism for local authorities' tax revenue: in 2025, three contributions totalling €1 billion are levied on the tax resources of municipalities and intermunicipal bodies (€500m, those whose combined resources-and-burdens index exceeds 110% of the average), departments (€220m, based on a social fragility index) and regions (€280m), capped at 2% of actual operating revenue, then paid back in thirds over the following three years.
Measure originators
No official estimate found for this measure.
Measure impact
€500m from municipalities and inter-municipal bodies, €220m from departments and €280m from regions. Capped at 2% of operating revenue for municipalities; exempt below €1,000. Amounts per authority are notified by ministerial order.
Official references
Sources
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration
President of the Republic signature
Publication au Journal officiel
Possible referral to Constitutional Council
Décision de conformité / censure partielle
Debate and vote
National Assembly has the final say
Si échec CMP
Joint committee
Désaccord éventuel
Debate and vote
Council of Ministers
Validation interne