Professional tax (France)

The Professional tax ( or TP) was prior to 2010 a tax levied on businesses (professionals and corporations) whose proceeds financed territorial collectivities. It was created by the Law 75-678 voted on that repealed the centuries-old "patente" and replaced it with the professional tax.
History.
Creation.
Up until the mid 1970s, the local tax system consisted of 4 outdated taxes whose creation dated back to 1791 amidst the French Revolution. Under the premierships of Pierre Messmer and Jacques Chirac, all of them would be substantially reformed:
Starting in 1978, tax rates for these three taxes are set freely on an annual basis by each general council, municipal council and other local bodies entitled to collect the taxes.
Subsequent reform.
Up until the fiscal year 2002, the tax base for the professional tax consisted of: 
Tax capped at 5% of added value (1985).
In 1985 the professional tax was capped at 5% of the added value of the taxpayer recorded in the second year prior to the fiscal year where the tax is assessed (i.e. 1983 for fiscal year 1985).
Salaries removed from the tax base (2000–2002).
The later was progressively repealed between 2000 and 2002 as it was considered harmful for employment. Salaries were completely excluded from the tax base starting .
Tax capped at 1.5% of added value (2004).
President Jacques Chirac announced on the imminent abolition of the professional tax. The tax was however not repealed at this time and instead was capped at 1.5% of the value added and investments made after are excluded from the tax base. The French state provided territorial collectivities with additional transfer payments to compensate for the resulting loss in revenues.
Exclusion of new investments from the tax base (2008–2010).
On President Nicolas Sarkozy announced that any investment made prior to would be 100% excluded from the professional tax base.
Replacement by the CFE and CVAE taxes.
A few months later, in a televised interview, Nicolas Sarkozy announced that the professional tax would be abolished in 2010. The president costed that measure at €8 billions per year. The Finance Law for 2010 repealed the professional tax and instead replaced it with two new taxes:
The French State promised that territorial collectivities would be fully compensated for any loss in revenues arising for the replacement of the professional tax by the CFE and CVAE.