Admissibility of setting the imputed rental value at a maximum of 70 percent of the market value and the wealth tax values at 90 percent of the effective market value

Facts

On 8 January 2001, the Cantonal Council of the Canton of Zurich decided to amend the cantonal Tax Act, according to which the imputed rental value is to be set at a maximum of 70 percent of the market value (§ 21 para. 2 lit. a StG) and the wealth tax value in individual cases is to be aimed at 90 percent of the effective market value (§ 39 para. 4 StG). Niklaus Scherr and the Zurich Tenants' Association filed a complaint against these provisions.

Considerations

The Federal Court dismisses the complaint. The setting of the imputed rental value at a maximum of 70 percent of the market value is compatible with the case law of the Federal Court, according to which a range of 60 to 70 percent of the market value is permissible. The canton must ensure that this provision is implemented in a manner consistent with the constitution, if necessary by adapting the implementing regulations.

The regulation on the determination of the wealth tax value is also constitutionally permissible. The requirement that estimates at the upper end of the range may not exceed the effective market value (§ 39 para.…