Prime Minister's letter to Limoges mayor

The Prime Minister wrote to the mayor of Limoges, stating that "the only taxpayers of Limoges cannot bear the cost of such destruction." This wording implies that while the local taxpayers are not the sole ones responsible, they may still have to contribute a portion of the cost. However, each taxpayer can pay little, late, or not at all, leaving the rest to be covered by the municipal budget.

Historical legal framework for communal liability

In 1795, a law made all citizens living in the same commune civil guarantors of violence committed on their territory. Over time, the State took a share of this responsibility, first half in 1914 and fully in 1983. This legal basis is currently covered by article L. 211-10 of the internal security code.

Legal exclusions and recent incidents

The Council of State excludes damages caused by groups "structured solely to commit them" from being covered by the communal liability framework. However, Maire-info, a daily newspaper for mayors, reports that small organized groups have attacked town halls in several cities, including Marseille, Lille, Angers, Grenoble, and Calais. These groups sometimes act before official processions, complicating the determination of liability.

State's delayed payments and financial burden

When the State does pay, it often does so late. For example, the State paid 1.4 million euros to Paris for damage caused by the yellow vests between 2018 and 2019, but only after two court rulings in 2022. From 2021 to 2025, the State spent an average of 4.1 million euros annually on such claims, according to an impact study of the "breakers-payers" law.

Announcement of an exceptional fund

On 19 October, Minister Françoise Gatel announced an "exceptional fund" to help rebuild public facilities in Limoges, though no specific amount was given. In 2023, a 100 million euro fund was partially offset by credit cancellations on program 119, which provides state competitions to local authorities. The subsidy was calculated after a depreciation allowance that could reach 80% for a building over forty years old. The Limoges town hall is 143 years old.

Insurance challenges for local authorities

On 20 October, Minister Serge Papin stated that "the insurance companies are doing their job" regarding merchants. However, insurance companies are not always reliable. Since 2023, one in five of the 713 local authorities that responded to a Senate consultation saw their insurer cancel their contract. In Limoges, insurance costs increased significantly, with the premium rising from 203,000 euros in 2023 to 527,000 euros in 2025, and the deductible for fires, thefts, and popular movements increased from 5,000 to 50,000 euros.

Proposed legal changes in the Senate

A bill being examined in the Senate would make each participant in a violent group solidarily responsible for the damage, up to 10,000 euros. However, this requires identifying and condemning the perpetrators, which the State has not done since 2019. The bill also preserves the State's ability to hold the commune responsible if its liability is engaged.

Financial constraints on communes

A commune can borrow to rebuild, but it must repay the capital from its own resources. The property tax on built properties accounts for 90% of its local direct tax revenue and 40% of its operating revenue. The mayor of Limoges emphasized that it is not the residents of Limoges who should pay for the destruction, but it remains unclear who will ultimately bear the cost.

Future tax adjustments and legal restrictions

By 1 January 2027, property tax bases will be revalued based on inflation, without local voting. The index used for the calculation had increased by 3.4% in one year as of September. Municipal councils will vote their tax rates before 15 April 2027. The next general municipal elections will be in 2032. Legally, no increase will be allocated specifically for reconstruction, as the non-allocation rule prohibits assigning revenue to a specific expense.

Changes to the FCTVA and tax challenges

The 2027 finance bill reduces the FCTVA by a quarter, which the State uses to compensate part of the VAT paid by communes on their investments. The rate for certain works would decrease, reducing the amount communes receive. However, the measure remains in the text debated in the Senate. The tax rate is set by the municipal council, while the base is calculated based on cadastral rental values, which are still based on 1970 rental prices. The 2026 finance law postponed revisions to 2031. A complaint filed by 31 December 2026 can still target the 2025 and 2026 tax years.

Legal perspectives on property tax

Manon Bellin and Gary Cahn, co-founders of orka.tax, note that the vandals do not have a property tax opinion, but property owners do. They emphasize that between the principle of the vandals-payers and actual payment, there are years of procedures, exclusions, deductibles, and a municipal budget to be voted before 15 April. They call on the State to quantify its fund before the municipal councils vote their rates. They also point out that the tax rate is a political choice of the municipal council, while the base is determined by law.