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The Covid pandemic is shaking the tax authorities of cantonal communities for the next year. These are the rising, falling and stable, and a city suddenly becomes needy.
In some parts of the canton, taxes will be raised; It is not yet clear how much: motorcyclists are all the rage in Zurich.
Photo: Urs Jaudas
Fat years are over, now let’s be careful. This is how you can sum up the new attitude of those responsible for finance in the cities and communities of Zurich.
In the last two years, only 24 municipalities increased their taxes, but 56 reduced the tax rate, 12 of them even twice in a row.
Upward trend
Now an opposite movement is emerging. The “Tages-Anzeiger” has learned of the tax base applications from about 100 of the 162 municipalities, including the 40 largest. The result: 14 want to raise taxes, 8 want to lower – Among them is a municipality that has already reduced the tax rate in 2019 and 2020: Rheinau. It is striking that the larger municipalities, in particular, want more from their taxpayers. Tax lovers are more like towns. Above all, the survey shows that most municipalities expect and keep taxes stable.
Many of the executives ‘motions to parliaments and citizens’ assemblies state that Corona’s uncertain situation has caused them to plan carefully and wait. A good number of budget deficits do not affect the tax rate, because they do not want to be a burden on households and industry in times of crisis.
“The reserves are intended for crisis situations.”
The initial situation is usually not bad. Heinz Montanari, from the cantonal municipal office, describes as “robust” the starting position of the municipalities for the financial management of the Crown crisis. Many have been able to accumulate capital in recent years. “The reserves are destined to crisis situations”, says the financial expert.
In 2021 he expects the crisis to have “first traces”, but without major disruption. Problems could arise in the following years as the number of unemployed and the number of cases of social assistance increase. Therefore, it is crucial that the crisis lasts longer. He describes the fact that the tax rate should not move across the board as a political response to the crisis: “We want to demonstrate stability and predictability.”
Cities and municipalities can be divided into different categories:
Tax hikers
Eglisau is one of the many municipalities that want to increase the tax rate.
The most prominent example is Winterthur. The city council wanted to increase the tax rate by a whopping 7 percent. Parliament did not approve this at all and rejected the budget, including the request for the tax base. You want to accept a maximum increase of 3 percent. The neighboring community Seuzach, which four years ago still had a tax rate of 84 percent, now wants to increase to 106 percent in 2021, which is +5 compared to today. Bassersdorf Y Pfäffikon they want to raise taxes by 5 percent, as well as Waedenswil. Eglisau increases by 4 percent. The City Council of Schlieren wants to reverse the 3 percent cut pushed by parliament last year, while debt explodes. The also heavily indebted Bubikon it wants to rise again by 3 percent after having increased by 5 percent in 2018 and 2019. The Audit Commission (RPK) of the Oberland municipality even requires a 6 percent higher tax rate. Wiesendangen it aims for a 2 percent higher tax rate, but it’s still a cheap municipality at 92 percent.
Tax increase due to schools
In Turbenthal, residents have to pay more taxes to fund the schools.
Photo: Madeleine Schoder
Taxpayers in some municipalities will likely have to dig deeper into their wallets because schools need more money. Belong to them Dietlikon (+6), which nevertheless budgeted for a huge deficit, Turbenthal (+4), Weiningen, Oetwil an der Limmat Y Unterengstringen (is +2).
Cute taxes
Photo: Sabina Bobst
next Rheinau (-4) also wants Rifferswil lower the tax rate. The picturesque town of Säuliamt has experienced some turbulence. In 2016 the tax rate increased by a record 22 percent, but last year it also dropped 3 percent. Erlenbach Y Truttikon aim for a 2 percent reduction, Dinhard she has already decided. Geroldswil more than offset a 2 percent tax increase in the high school community with a 3 percent reduction in the political community tax rate. Maschwanden Y Wila They are among the poorest communities with the highest tax rates and, despite a reduction of 1 percent (to 129 percent), they have access to the cantonal bailout fund called Isola.
The stable
In Zurich, everything should remain the same: the tax rate is not touched.
Photo: Patrick Gutenberg
As mentioned, most communities will not touch your tax base. The cities belong to them Zürich, Uster, Dubendorf, Dietikon, Wetzikon, Horgen Y Bülach. However, some of these cities are planning a substantial deficit. Zurich budgeted less than 98 million francs, Uster one of 10, Dietikon even one of 15 million. Bülach declares 5 of the 7 million deficits related to Corona. Dübendorf, in turn, plans with a surplus of 2 million.
The cantonal tax rate, which is only redefined every two years, is also kept at 100 percent.
The tax haven
In Kilchberg, taxes remain low at 72 percent.
Photo: Michael Trost
Zurich’s tax haven par excellence will be the lakeside community close to the city. Kilchberg stay, which requires 72 percent. In all likelihood, it won’t come from the neighboring community either. Rüschlikon (73 percent) or Neerach Y Store (76 each) and Küsnacht undermined, whose council wants to stay at 77 percent. However, Küsnachter RPK would like to take a step that calls for a 2 percent reduction in the tax rate.
Airport communities
Communities near the airport, like Kloten, are suffering from the corona pandemic. But they don’t want to change the tax rate.
Photo: Urs Jaudas
Not surprisingly, planning with high deficits Kloten (20 million), Opfikon (14) and Rümlang (3), all of which rely heavily on the now ailing aviation industry. Kloten expects corporate taxes to fall by nearly 50 percent, which is equivalent to a staggering 56 million. However, the tax rate remains unchanged. “We don’t want to overburden taxpayers or businesses,” says Finance Councilor Mark Wisskirchen (EPP). And: “We continue to trust.”
From the donor community to the recipient community
The fact that Klotener’s deficit is not greater has to do with financial leveling. Cities like Opfikon or Kloten were previously donor communities. Their fiscal strength was well above the cantonal average, which is why they paid heavily into the compensation fund for the benefit of the poorest communities.
Kloten, for example, would have to deposit 27 million next year because the calculation is based on 2019 figures. The airport city is now planning the other way around with 5 million revenue from the boat. So suddenly it becomes a community of receivers. “That is the mechanism of financial equalization,” says Montanari from the municipal office and explains another possible scenario.
Why wealthy communities are allowed to pay even more
Despite the crisis, wealthy communities are likely to pay even more into the compensation fund in the future. The city of Zurich, for example, which relies heavily on the financial sector, or communities like Küsnacht, where managers live, may feel less of the tax revenue crisis, as their industries suffer less from Corona.
If the cantonal means of taxation now falls, which is expected, the difference with stable and wealthy communities increases. As a result, they have to deposit more. Küsnacht had to pay 102 million in the current year. For 2021, almost 118 million have been calculated, and that even before the corona effect.
In May, the canton recommended municipalities to expect 6.5 percent less tax revenue from individuals. “Now we are assuming a slightly smaller number,” says Montanari. There was no percentage recommendation for the company’s earnings. The differences according to the predominant industry are enormous, as the examples of Zurich and Kloten show.
