Definition of TEOM tax

The household waste tax, known as TEOM, is a local tax collected by communes or intercommunal authorities to fund waste collection and processing. It is based on the cadastral rental value of the property, with a local rate applied to determine the final amount.

Who pays the TEOM tax

The property owner is responsible for paying the TEOM tax, though they may recover it from tenants through rental charges. This can sometimes lead to confusion, especially when tenants move in or out of a property.

How the TEOM is calculated

The TEOM is calculated using the cadastral rental value of the property, which is a theoretical annual rent set by the tax administration. A local authority-determined rate is applied to this value, and the result is the tax amount. For example, a property with a cadastral value of 2,000 euros and a 10% rate would incur a 200 euro annual tax.

Variation in TEOM across regions

The cost of the TEOM varies significantly by commune and region due to factors like waste collection methods, population density, and local policies. Urban areas may have higher rates due to increased logistical costs, while rural areas may have lower or higher rates depending on the efficiency of waste collection.

Ways to reduce the TEOM

While the TEOM is largely based on the cadastral value and local rates, there are limited ways to reduce it. These include contesting errors in the tax base, requesting exemptions for vacant properties, or reducing waste production in communes that offer an incentive component.

Common questions about the TEOM

Frequently asked questions about the TEOM include who is responsible for payment, how to contest the amount, and whether the tax is the same across France. The tax is included in property tax notices but is separate and specific to waste management.