Facts
During the session of June 1, 2021, the Grand Council of the Canton of Ticino amended Art. 20 of the Tax Act of June 21, 1994, by adopting a new para. 4 regarding a "brake on the impact of the rental value". The new provision stipulates that, in the case of a taxable wealth of less than 500,000 francs and upon request of the taxpayer, the taxable rental value may amount to a maximum of 30 percent of the cash income.
A. and B. filed a public law appeal with the Federal Tribunal, requesting the annulment of the new provision.
Considerations
The Federal Tribunal found that the contested provision violates Art. 8 para. 1 and Art. 127 para. 2 of the Federal Constitution, as well as Art. 7 para. 1 of the Federal Act on the Harmonization of Direct Taxes of Cantons and Municipalities (DTHA).
The taxation of the rental value aims to ensure equal treatment between persons living in their own property and tenants. The case law has established that the rental value must be set based on the market value, with a minimum limit of 60% of that…