Facts
The City of Wädenswil filed a complaint against the decision of the Administrative Court of the Canton of Zurich, which ordered the remission of the matter to the tax authorities for a new assessment of the property transfer value. The property was located in the building zone as of the cut-off date of November 23, 1987, but was later rezoned into the reserve zone.
The heirs of the property owner had calculated the market value of the property at the time of the sale in 2007 based on the building land value. However, the City of Wädenswil argued that the market value as of the cut-off date 1987 should be determined based on the reserve land.
Considerations
The Federal Supreme Court stated that in determining the property gain according to Art. 12 para. 1 of the Federal Act on the Harmonization of Direct Taxes of the Cantons and Municipalities (StHG), the actual condition of the property at the cut-off date must be taken into account. Not only the formal zoning status, but also the material condition of the property must be considered.
Since the property was formally still building land at the cut-off date, but the rezoning to reserve land had already been initiated, this circumstance must be taken into…