Maintain unchanged transfer rights in the Alpes-Maritimes
In an uncertain economic context, Charles Ange Ginésy made a strong commitment by announcing that he would not proceed with an increase in transfer rights for valuable consideration in the Alpes-Maritimes. This decision aims to preserve the purchasing power of local taxpayers and to avoid any increase in notary fees for real estate transactions, a measure welcomed by many actors in the sector. In this article, we examine the importance of this promise and its potential impact on the departmental economy.
A strained budgetary context
The government has asked local authorities to make savings, with a revenue shortfall estimated between 35 and 45 million euros for the Alpes-Maritimes department. In light of this situation, some departments are considering a rise in transfer rights to compensate. However, Ginésy emphasized that the financial situation of his department, although difficult, did not amount to bankruptcy. He explained that the department’s finances rely on a reserve cushion of more than 80 million euros, providing some maneuverability to get through the year 2024.
Management of local finances
By analyzing the results from previous years, there is a noticeable decrease in transfer rights: 549 million euros in 2023 compared to 689 million in 2022, representing a cumulative loss of 230 million over two years. Despite this downward trend, October showed signs of hope with a better performance than expected. However, President Ginésy remains steadfast on his commitment to maintain current rates, convinced that this is essential to avoid burdening the fiscal load on his fellow citizens.
A long-term vision for local taxes
The tax policy put in place by Ginésy is clear: not only does he refuse to raise taxes, but he has also instituted reductions in property tax, demonstrating a desire to lighten the burden on households. In 2019 and 2020, he had reduced property tax by 5% and 10%, respectively. This marks a continuity in his approach and establishes him as a key player on the local scene, making decisions favorable to taxpayers.
Why not increase the transfer rights?
Aside from the concern for equity towards the taxpayers of the Alpes-Maritimes, another reason motivating this decision is the mandatory contribution to the equalization fund. In 2024, the department must transfer 120 million of its transfer rights revenues to this fund, financed by more prosperous departments. In this context, Ginésy emphasizes the illogicality of taxing the residents of the Alpes-Maritimes more to support departments in difficulty.
Alternatives to increasing taxes
In response to the savings requested by the government for the year 2025, management of investment expenditures is at the core of concerns. Rather than resorting to an increase in transfer rights, which could have detrimental consequences on the real estate market and transactions, Ginésy opts for a restriction of spending, thereby ensuring budgetary stability without increasing local taxation.
This strategy reflects a pragmatic and thoughtful approach in the face of concerning economic challenges, positioning the Alpes-Maritimes as a territory where the desire to support taxpayers is a priority. By maintaining transfer rights unchanged, Ginésy commits to preserving the interests of his fellow citizens and strengthening the local economic fabric while facing upcoming financial challenges.
