The Different Types Of Funeral Taxes And Their Abolition
Funeral taxes are a fee instituted by some municipalities for funerals. The municipal council votes the rates with an amount that varies depending on the municipality in which the burial takes place. However, funeral taxes have been abolished since January 1, 2021, as part of the eradication of small taxes that do not bring in enough money. This has had significant consequences for some municipalities. So, without further ado, let’s dive into this blog and learn more about death.
Zoom on the different funeral taxes
There are three types of funeral taxes to know when preparing a funeral. As for their implementation and amount, they are set by the communes according to their budgetary needs. The votes are made every year during the municipal councils.
This first type of tax only concerns municipalities that have a crematorium on their territory. They can, therefore, add a tax on the costs of the existing crematorium. The amount is calculated and fixed following a vote by the municipal council, depending on the situation of each municipality. It is generally higher in larger cities than in rural areas.
The amount of the tax can vary between 300 $ and 500 $, depending on the nature of the equipment and the size of the municipality concerned. It is, therefore, necessary to foresee them when preparing for the funeral. This tax is levied to cover the costs of maintaining and renovating the structures and must be included in the commune’s budget.
This is a tax to be paid in the municipality where the deceased’s burial will occur. It must therefore be taken into account when organizing a funeral. Like the cremation tax, the amount of the burial tax depends on the commune in question. It is levied in order to contribute to the maintenance of the cemetery and its facilities. Some municipalities levy an overlay tax. This is a tax to be paid if the burial is in a grave that is already occupied.
Funeral convoy tax
This last type of tax concerns the deceased, who must be transported from one municipality to another. It can be required at the time of departure or once arrived at destination; it depends on each commune. This tax is levied only if a funeral company carries out the transport. The transport before the burial and after an exhumation is not considered. The rates for the funeral convoy vary from one commune to another, with an average of 30 $.
The abolition of funeral taxes
The reasons for the abolition
For several years, the French government has been trying to strengthen the country’s competitiveness in terms of taxation. To do so, many low-yield taxes have been abolished. Funeral taxes are one of them. In fact, according to the Court of Auditors’ report on low-yield taxes published in 2019, funeral taxes only brought in 5.8 million dollars. This approach initiated by the Court of Accounts has three main advantages. This includes simplification of legislation, removal of a mandatory levy, and easing the burden on municipal treasurers.
The consequences of the abolition
Funeral taxes have been abolished and are no longer to be levied as of January 1, 2021. However, despite the benefits of this decision, it has also had bad consequences. Indeed, even if this tax is one of the low yield taxes for the State, it represents a significant amount of money for some municipalities. By eliminating it, the State is depriving communes of some of the tax revenue they need to meet their operating expenses.
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