Taxation of Imputed Rental Value and Net Worth Tax Value

Facts

The Federal Supreme Court ruled on a constitutional appeal against a new tax law of the Canton of Zurich. The appellants, Niklaus Scherr and the Zurich Tenants' Association, alleged a violation of the principle of equal treatment under Art. 4 of the Federal Constitution as well as a breach of the Tax Harmonization Act.

The law provided that the imputed rental value should "as a rule" be set at 60% of the market value and that the net worth tax value for real estate should also "as a rule" amount to 60% of the market value.

Considerations

The Federal Supreme Court annulled these two provisions. It argued that setting the imputed rental value at less than 60% of the market value violates the principle of equal treatment under Art. 4 of the Federal Constitution. The imputed rental value must be at least 60% of the market rental value.

Furthermore, the regulation to generally set the net worth tax value at 60% of the market value contradicts…