[ad_1]
The Aargau Renters Association believes that tenants and landlords are treated unequally because current imputed rental values are too low. Therefore, the tenant association has challenged the relevant paragraph of the Tax Law and the decree on the adjustment of the imputed rental values. The administrative court approved the request for revision of the rule, according to the courts of the canton of Aargau. The judges come to the conclusion that the taxation of imputed rental values in Aargau is not constitutionally regulated.
According to the jurisprudence of the Federal Supreme Court, the rental values imputed at the cantonal level must be at least 60 percent of the market rental value. In the cantonal tax law, the imputed rental values are set at 60 percent of market income. As soon as market prices exceed 65 percent or less than 55 percent of market rent, the government must submit a request to the Grand Council to adjust the imputed rent value.
60 percent should not be lowered
The tenant association argues that the imputed rental value should never fall below 60 percent. The administrative court reaches the same conclusion. In the ruling, the judges refer to a federal court ruling that the lower limit of 60 percent “must be observed in each individual case and not just on average.”
For the administrative court, therefore, it is clear that the rental value tax imputed in Aargau is not based only on a rule that allows an adjustment to be made only when the constitutionally prescribed limit is reduced by five percent; on the contrary, the concrete implementation “leads to a result that is far from complying with the requirements of the Constitution.” The fact that the rules are democratically legitimized, that is, decided by the Grand Council as legislator, does not change anything. “The legislator is also subject to constitutional limits,” he says in the sentence.
The Administrative Court repealed the paragraph of the Tax Code and the decree. However, the decree applies in the sense of a transitory regulation until a legal basis has been created that complies with the federal constitution. The administrative court’s decision is final and cannot be referred to federal court. Consequently, the legislature is required to guarantee a tax on the imputed rental value in accordance with the Constitution.
“Hard hit against homeowners”
The cantonal tax office “will analyze the resolution in detail and begin its implementation,” said the Department of Finance and Resources. It should be noted that a legislative process is underway to abolish imputed rental values at the federal level and that a strategy to simplify taxes on home ownership is currently being developed in Aargau.
The Aargau homeowners association speaks in its message of a “hard blow against the owners”. In times of the Crown, it is appropriate to “curb fiscal hunger.” In view of extensive government aid programs, turning the tax screw before there is any sign that the situation will calm down is “a hostile act” toward homeowners.
However, the homeowners association must receive the judgment of the administrative court. “The association does not torpedo decisions that are made on the basis of the rule of law,” says the message. But it requires that the 60 percent mark “not be exceeded under any circumstances” and reserves the right to have market rents verified if necessary.
The governing council has long recognized the problem
The governing council had long known about the imputed rental value problem. In the 1998 governing council message on the full revision of the tax law, he stated: “If imputed rental values are set at the lowest possible level of 60 percent of market rental values and the adjustment is performed after a change of more than five percentage points minimum, unconstitutional conditions exist for a long time. “For the court, this shows that a political decision was made as early as 1998,” which literally accepted a violation of the constitution. “
SVP and FDP were against an increase
The imputed rental values were last adjusted on January 1, 2016. At that time, the Grand Council approved an increase with only 68 to 64 votes. The SVP parliamentary group and a large majority of the FDP parliamentary group voted against an increase. At that time, the SVP asked in the room of the Grand Council not to hide “behind any formalistic regulation”, but to represent the owners of the houses. And say no to this punishment from the owner.
