Local taxes: the state penalized for attempting to retroactively validate erroneous taxes

The Wise Men send a clear message to the administration: you do not change the rules of the game once the game is over without a compelling reason.

The issue stems from a complex calculation method designed to cushion the impact of tax increases for business premises.

This method was deemed illegal by the Council of State in November 2023.

Faced with this irregularity, the government attempted a corrective measure in the 2025 budget law.

He inserted an article aimed at retroactively validating these disputed calculations, arguing that the reimbursements would create administrative chaos and a "financial risk" for the State and local authorities.

Seized by a company via a priority question of constitutionality (QPC), the Council ruled clearly: in order to modify the law in the past and infringe on the rights of taxpayers, the State must do so within a "strictly defined" framework.

However, according to the decision, the government has not demonstrated that the potential claims would cause an unbearable financial upheaval or that they would be sufficient to "disrupt the activity of the tax administration".

This decision confirms the illegality of the cover attempt: the State cannot erase its calculation errors by a simple validation law.

The decision now applies to all companies with a pending claim, without the date restriction the government was trying to impose.