Municipality v. Cantonal Government: Retroactive Real Estate Transfer Tax on Business Transaction

A municipality appealed a decision by the Cantonal Government regarding the retroactive taxation of a property sale that had been agreed upon in a notarized contract, arguing that the underlying transaction was not a taxable real estate transfer but a business transaction, which should not be subject to the transfer tax. The court reasoned that for the transaction to qualify as a non-taxable business agreement rather than a taxable property transfer, the primary purpose of the contract must clearly be the transfer of business assets, and a mere ancillary transfer of real estate must be insignificant; however, since the agreement involved the transfer of land and a building, which constitutes a significant component, the court upheld the Cantonal Government's decision to levy the real estate transfer tax retroactively.