Tax dispute in parliament: Council of States maintains imputed rental value for second homes

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Pirmin Bischof (middle/SO), speaking on behalf of the Economic Commission of the Council of States (WAK-S), stated that a complete system change would be consistent. “However, this would result in major financial losses for the tourist cantons.”

The Small Chamber therefore only wants to abolish the imputed rental value for private homes. Second homes would therefore remain taxed at the imputed rental value. The decision was made with 36 votes in favor and 8 against.

In the small room, only individual council members left and center voted for a complete system change. The support in the National Council was much greater: only the FDP faction was against it.

“Ultimately we have to get everyone on board.”

“Of course, a complete abolition would be easier, but ultimately we have to weigh the interests and get everyone on board,” said Hannes Germann (SVP/SH). It is still unclear how the cantons would position themselves in a possible referendum. Without their support, the proposal would be at great risk.

The minority around Carlo Sommaruga (SP/GE) argued in vain that administrative economics should be given more weight and that consistent systemic change should be implemented. Only in this way can the administrative burden for the Tax Authorities be reduced and duplication of work avoided. “If we want to get the bill passed, it is difficult to explain why we are creating two different systems,” says Erich Ettlin (middle/OW).

It will probably take years before this is implemented

According to the minority, the medium-term goal is to create a constitutional basis for a property tax on second homes. This should offer the affected cantons the opportunity to offset the expected tax losses resulting from a complete system change in the taxation of imputed rental value.

The responsible committee of the National Council is working on a corresponding model. However, it will likely take several years for its implementation to take place.

There is also a difference on a second central point of the reform. The Council of States is less restrictive than the National Council when it comes to the deduction of interest on debts. In the future, deductions of up to 70 percent of taxable investment income will be allowed.

The National Council wants to set this threshold at 40 percent. A minority of the WAK-S no longer wanted to allow interest deductions on debts to reduce high private debt. However, this request failed. Today, debt interest is allowed up to the amount of taxable investment income and an additional 50,000 francs.

The proposal goes back to the National Council. The abolition of the tax on the imputed rental value of residential properties is a long-standing issue and controversial. Proposals for this have already failed twice at the ballot box and several times in parliament. (SDA)

Source:Blick