Local authorities in France face a new tax, the CPEB, with Grand Lyon projected to pay over 58 million euros, raising concerns about public services and financial strain.
New tax proposed for local authorities
Intercommunalities and certain communes in France are expected to pay a new "progressive contribution to the budget effort" (CPEB) as part of the 2027 finance bill. This tax aims to collect funds from various local authorities, including metropolitan areas and agglomeration communities.Grand Lyon faces a large financial burden
For the Grand Lyon, the CPEB would require 22.7 million euros from its own fiscal resources and an additional 35.4 million euros from the 58 communes in its territory. This totals over 58 million euros, or 1.84% of the metropolitan area's operating revenues.Financial constraints for local authorities
The Grand Lyon, with a budget of nearly 4 billion euros, could face significant challenges with this new levy. The local authority has limited maneuvering margins due to fixed expenditures, such as the payment of social benefits like RSA.Most communes in Grand Lyon will contribute
Out of the 58 communes in the Grand Lyon territory, 53 are expected to contribute to the CPEB. However, several of the most populous cities, including Vénissieux and Vaulx-en-Velin, will be exempt from the levy.Lyon’s potential cost and concerns
Lyon could face a bill of 15.7 million euros, or 2% of its operating revenues. Deputy mayor Valentin Lungenstrass warns that the amount could rise to 20–25 million euros, which he describes as "colossal" and potentially reducing public services.Government’s proposal faces strong opposition
The government expects a total contribution of 5.4 billion euros from local authorities through various measures, including the CPEB. However, all associations of elected officials rejected these proposals unanimously on October 14.