Facts
- The St. Gallen Act on State and Municipal Taxes (StG) provides for a minimum tax of 1 per mille of the official market value of real estate located in the canton owned by legal entities, if this tax exceeds the ordinary taxes by more than 200 Swiss francs. Cooperatives and associations fulfilling social housing tasks are exempt. - Several cooperatives, a joint-stock company, and an association have filed a constitutional appeal with the Federal Supreme Court against these provisions, as they violate the principle of legal equality (Art. 4 Federal Constitution) and the prohibition of intercantonal double taxation (Art. 46 para. 2 Federal Constitution).Considerations
- The Federal Supreme Court holds that the principle of taxation according to economic capacity binds the tax legislator, but allows a wide margin of discretion within this framework. A minimum tax on real estate owned by legal entities can be justified if their profit and capital do not adequately reflect their actual capacity to pay. - For real estate companies and cooperatives with large real estate holdings…