20% exemption from land tax on agricultural land

Article 13 of the 2006 Finance Act creates Article 1394 B bis of the General Tax Code: agricultural land is exempt from 20% of the tax on undeveloped land levied by municipalities and their groupings. The State compensates local authorities for the lost revenue. When the land is leased, the exemption must be passed on in full to the tenant farmer (Article L. 415-3 of the Rural Code). The measure applies to taxes assessed from 2006.