Ordinance on the Valuation of Land (VBG) - Subject of the Evaluation (BETCLIFD)

1. Subject of the valuation comprises the properties according to § 51 paragraph 1 StG.

2. Also included among the items and rights firmly connected to the property are the components and the accessories firmly connected to the property according to Articles 642, 644, and 645 of the Swiss Civil Code (ZGB) of December 10, 1907.

1. Objects Not Subject to Evaluation Are

a) Real properties owned by the Federation and its establishments, insofar as federal legislation prescribes an exemption from tax liability (§ 13 para. 1 letter a StG),

b) Real properties owned by the Canton and its establishments, except those belonging to an independent cantonal establishment (§ 13 para. 1 letter b and § 159 para. 2 StG),

c) Real properties of the Aargau resident and local municipal communities and their establishments, the Aargau municipal associations, the Aargau church municipalities, and the Aargau national churches (§ 13 para. 1 letter c StG),

d) Real properties owned by a tax-exempt legal entity with special purposes as mentioned in § 14,

e) Real properties owned by a corporation (public limited company, limited liability company, limited partnership with shares) or cooperative.

1. To the extent that the tax law or this regulation does not contain its own provisions, the Swiss Valuation Manual, SVKG, 5th edition, Aarau 2019, shall apply in principle.

1. In the case of an individual assessment pursuant to § 218 para. 2 of the Tax Act, the circumstances of the tax period in which the significant change occurred or in which the revaluation was initiated due to incorrect values are decisive.

1. The market value of a property is deemed to be the purchase price that can be achieved in transactions with third parties, regardless of unusual or personal circumstances.

2. The market value is determined by

a) equating it with the purchase price according to paragraph 1,

b) direct or indirect price comparison if a purchase price in accordance with paragraph 1 is not available. A purchase price does not correspond to the market value if it does not fit into the range of direct or indirect price comparisons ("outlier").

3. In a direct price comparison, the market value is derived directly from comparable prices, and the property to be valued is compared with an object that has the same or similar location and object characteristics that determine its value.

4. In an indirect price comparison, the market value is determined based on statistically determined comparison factors, which are based on actual purchase prices achieved. Additionally, the market value can be determined by dividing the rental price according to § 6 paragraph 1 by the empirically derived interest rate.

5. For the uncertainty in the comparison data to be considered in determining the asset tax value, reliance is placed on the variability of market values. This is based on the following key figures

a) Standard deviation / standard error,

b) (Inter-) quartile range,

c) Mean linear deviation from the mean or median.

1. The market rental value is defined as the rental price that can be achieved in a lease to third parties, irrespective of unusual or personal circumstances.

2. The market rental value is determined by

a) Equating it with the rental price according to paragraph 1,

b) Direct or indirect rental price comparison, if a rental price according to paragraph 1 is unavailable. A rental price does not correspond to the market rental value if it does not fit into the series of direct or indirect price comparisons ("outlier").

3. In a direct price comparison, the market rental value is derived directly from comparable prices, and the property to be assessed is compared with a leased property that possesses the same or similar location and object characteristics that determine its value.

4. In an indirect price comparison, the market rental value is determined based on statistically ascertained comparison factors, which are based on actual rental prices achieved.

1. The real value of a property corresponds to the sum of the current value of the buildings, the surroundings, the ancillary costs, and the land value.

2. The current value corresponds to the new value reduced by technical depreciation.

1. The capitalized value of a property corresponds to the sum of the future earnings discounted to the valuation date.

1. Estimated Market Adjustment Factors (MAF) and estimated Empirical Interest Rates (EIR) are used as comparison factors, determined through the mathematical-statistical method of multiple linear regression, taking into account significant influencing factors.

2. The calculation of the observed MAF is carried out according to the principles of the cost approach, based on appropriate purchase prices and their corresponding replacement values (Appendix 1).

3. The calculation of the observed EIR is carried out according to the principles of the income approach, based on appropriate purchase prices and their corresponding rental prices (Appendix 2).

1. A property is considered to be agriculturally used if it serves businesses engaged in agricultural production or horticultural production enterprises.

2. Properties on which horses are kept are only considered agriculturally used if an agricultural business exists even without this activity.

3. Properties that are used for leisure farming or purely for self-sufficiency are specifically not considered to be agriculturally used.

4. Living quarters are considered agriculturally used if they meet the requirements according to the guidelines for the estimation of agricultural yield value (Annex to the Ordinance on Rural Land Law [VBB] of October 4, 1993, as amended on January 31, 2018). If the requirements are met, the qualification applies for the entire tax period.

5. The qualification of a property as agriculturally used does not provide any information about its classification as business or private assets.

1. All areas subject to forestry legislation are considered as forest.

2. The use of buildings for forestry purposes is equated with agricultural use according to § 51 paragraph 2 of the StG (State Tax Law).

1. The income value of agriculturally used land and forest is determined in accordance with the provisions of federal law (Art. 10 of the Federal Act on Rural Land Rights [BGBB] of October 4, 1991, as amended on January 1, 2014). The applicable provisions are Art. 2 of the Ordinance on Rural Land Rights (VBB) of October 4, 1993, as amended on April 1, 2018, and the guidelines for estimating the agricultural income value (Appendix to the VBB, as amended on January 31, 2018). Deviations stipulated in this ordinance remain reserved.

2. For the revaluation on January 1, 2025, the flat-rate values according to Appendix 3 apply.

3. Outside of a revaluation, agricultural land and forest are assessed based on the flat-rate values according to Appendix 4.

1. For the revaluation of properties according to § 218 para. 1bis StG, the Cantonal Tax Office conducts market surveys.

1. An individual appraisal may be requested by the owner, the taxpayer, the Tax Commission, the Municipal Council, or the Cantonal Tax Office.

1. For the wealth tax and imputed rental values of the tax years prior to the implementation of the new law, the Ordinance on the Valuation of Real Estate (VBG) dated November 4, 1985, applies.

1. This Regulation shall enter into force on 1 January 2025.