The National Council wants to completely abolish imputed rental value
The National Council wants to abolish imputed rental value for second homes. At the same time, it aims to create a constitutional basis for an object tax. The controversial proposal now goes to the Council of States.
The National Council voted by a large majority for the abolition of imputed rental value for second homes.
Photo: Keystone
The National Council also wants to abolish imputed rental value for second homes. It confirmed this decision on Wednesday. At the same time, it aims to create a constitutional basis for an object tax on second homes. This creates a bridge for the Council of States.
The abolition of the taxation of imputed rental value on property ownership is a long-standing and controversial issue. Proposals to this effect have already failed at the ballot box twice and several times in parliament.
In 2017, the Commission for Economic Affairs and Taxation of the Council of States launched a new attempt. The resulting federal law on the system change in property taxation has been under consideration in parliament for three years.
Compensating tax shortfalls
Even after the second reading in the National Council, there are differences in two key points of the proposal. The councils pursue different concepts.
The National Council advocates for a complete system change. Therefore, the imputed rental value should also be abolished for second properties. This decision was underpinned by the large chamber on Wednesday with 153 votes in favor, 39 against, and one abstention. Only the FDP group and some individual members of the SVP group opposed it again.
The medium-term goal of the National Council is to create a constitutional basis for an object tax on second homes. This would give the affected cantons the possibility for cantons and municipalities to impose a special property tax and thus compensate for the anticipated revenue losses due to a complete system change in the taxation of imputed rental value.
The large chamber voted in favor of the new constitutional provision without any opposition. It still needs to be considered by the Council of States. If parliament agrees, the people and cantons would have to approve the federal resolution for it to take effect.
“We could create history”
So far, the Council of States has not wanted to hear anything about the abolition of imputed rental value for second homes. Last December, the small chamber voted 36 to 8 against the complete system change. It only wants to abolish imputed rental value for primary residences.
Council member Pirmin Bischof (Center/SO) stated at that time on behalf of the responsible commission that a complete system change would be consistent. “However, it would result in high financial losses for the tourism cantons.”
With the constitutional provision for an object tax approved by the National Council, the mood could now turn. Affected cantons and municipalities would have the competence to take tax countermeasures. “We could create history,” said Center spokesman Leo Müller (LU) in the National Council.
New proposal on interest deduction
For the proposal to succeed, an agreement is also needed in a second central point: on the deduction of interest expenses. Currently, interest expenses are permitted to the extent of the taxable asset income and an additional 50,000 francs.
According to the decision of the small chamber, deductions of up to seventy percent of taxable asset income should be allowed in the future. The National Council had previously supported a deduction of private interest expenses amounting to forty percent of taxable asset income.
On Wednesday, a narrow majority favored the use of the quota-restrictive method. Here, the amount of the interest deduction is derived from the ratio of real estate assets to total assets. With 101 votes in favor, 91 against, and one abstention, the National Council approved this proposal.
According to Finance Minister Karin Keller-Sutter, the tax shortfalls for the federal government under the path approved by the National Council amount to around 430 million francs. With the solution proposed by the Council of States, a revenue shortfall of around 610 million francs would be expected.
The proposal now goes back to the Council of States.
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