Property Transfer Tax Act (HStG) - Tax Sovereignty (HStG)

1. The State of Lucerne and the municipalities levy a property transfer tax in accordance with this law.

1. Transactions Subject to Property Transfer Tax

1. The transfer of ownership of real estate within the meaning of Article 655 paragraph 2 of the Swiss Civil Code,

2. Changes in the composition of entities held in joint ownership, changes in share rights, and the termination of joint ownership,

3. The transfer of economic control over a property, in particular through

a. the sale of shares in real estate companies,

b. the transfer of a purchase right and the entering into a purchase or a preliminary purchase agreement. A transaction is also considered a transfer if rights under a purchase right, purchase agreement, or preliminary purchase agreement are waived with the intention of enabling a third party to acquire ownership of the property, and the ownership is subsequently transferred to that third party,

c. the encumbering of a property with an easement, if this permanently and substantially impairs the unrestricted management or the sale value of the property, especially through the granting of a building right or a building prohibition.

1. Tax-Exempt Property Transfers are

1. * the transfer of real estate in connection with land reallocation and boundary adjustments according to the provisions of the Planning and Building Act, and in connection with land consolidations according to the provisions of the Act on Support for Land Improvements, the Act concerning Land Consolidations and Settlements, and the Forestry Act.

2. * legal transactions between spouses, also as a result of matrimonial property disputes, between registered partners, between domestic partners who have lived together in a marriage-like relationship for at least two years, as well as between relatives in the ascending and descending line, including their partners (spouses, registered partners, or domestic partners),

3. * inheritance (succession, division of inheritance, legacy),

4. the conversion from joint ownership to co-ownership and vice versa, as far as the participatory relationships do not change, as well as the partitioning of communal property, provided the allocated plots correspond to the previous shares. Exceptions are cases where the conversion or partitioning occurs in the context of an inheritance division,

5. * the transfer of real estate in the context of restructurings as per §§ 26 and 75 of the Tax Act,

6. legal transactions with a transfer value of less than CHF 20,000.-.

1. The purchaser is liable for the payment of taxes. In cases outlined in § 2 Item 3b, the person entitled through a purchase right, purchase agreement, or pre-purchase agreement becomes liable for taxes only when they transfer the purchase right to a third party, allow a third party to enter into the purchase or pre-purchase agreement, or waive the exercise of such a right.

2. In the case of joint acquisition, multiple purchasers are jointly and severally liable. The corporation or cooperative society, from which share rights as defined in § 2 Item 3a are sold, is also jointly and severally liable with the purchaser.

1. Exempt from the Property Transfer Tax are

1. the Confederation according to federal legislation,

2. the State of Lucerne,

3. * the municipalities and church parishes of Lucerne, provided the property is located within the respective or adjacent municipality,

4. the ecclesiastical and charitable institutions headquartered in the Canton of Lucerne, provided they afford substantial benefits to the residents of the Canton of Lucerne. The Government Council can also grant tax exemption to institutions headquartered or operating outside the canton if significant benefits accrue to Lucerne organizations or residents, or if the resident canton grants reciprocity,

5. the organizations and sponsors of non-profit housing development pursuant to the regulations of the Federation and Canton on housing promotion.

1. The transfer tax amounts to 1½ percent of the transfer value.

1. The transfer value comprises all considerations provided by the acquirer.

2. If the purchase price cannot be determined, for example in cases of exchange, gift, or inheritance, the tax for properties with an agricultural or forestry yield value assessment is to be calculated based on 200 percent of the cadastral value, and for other properties, based on the cadastral value. The same applies if the purchase price agreed upon by related parties does not reach these values. If the property, which has an agricultural yield value assessment, is situated in a construction zone, the tax is to be assessed based on the market value.

3. If an heir takes over an agricultural property as defined in Article 620 of the Swiss Civil Code (ZGB), the transfer tax is to be calculated based on the civil law accounting value. § 3 number 2 remains reserved.

4. Contributions in kind to be provided in addition to the purchase price are to be valued at market value, and recurring payments at present value.

1. In the case of exchange contracts, the tax must be calculated separately for each property involved.

2. If an exchange occurs without any additional payment, the transfer value for both properties shall be the higher replacement value, calculated according to § 7 paragraph 2.

3. If an additional payment is made, the transfer value for each property shall be the value of the exchanged property, calculated according to § 7 paragraph 2, plus any additional payment made or minus any additional payment received.

1. In the case of property transfers pursuant to § 2 number 3b, the tax shall be levied on the agreed purchase price plus any possible compensation.

1. The property transfer tax is assessed by the municipality in which the property is located.

2. If properties located in different municipalities are subject to a transfer, the assessment and collection of the tax shall be carried out by the assessment authority of the municipality where the greater value portion is located. The tax revenue is distributed in proportion to the taxes apportioned to each individual property. The distribution of the tax revenue can be contested by the other municipalities within 30 days by means of an objection.

3. The municipality may designate an administrative office to fulfill tasks assigned to it. Multiple municipalities may designate a joint administrative office.

4. Unless otherwise regulated by this law and the legislative decrees of the municipality, the authority responsible for the property transfer tax in the municipality is the municipal council.

5. In addition, the provisions of the Tax Law shall apply mutatis mutandis to the duty of confidentiality, administrative assistance, and the cooperation obligations of the taxable person, as well as to the certification, information, and reporting obligations of third parties.

1. The land registry offices report changes in ownership to the tax assessment authority and the tax department of the canton.

2. In the case of changes in ownership that occur without a land registry entry, the taxpayers are obligated to report the taxable event to the tax assessment authority of the municipality where the property is located within 30 days of the change.

3. Taxpayers are required to submit the documents necessary for the assessment.

4. In the case of changes in ownership under § 2 Number 3a, the organs of the affected legal entity are also subject to the notification and cooperation obligations according to paragraphs 2 and 3.

1. The provisions of the tax law are to be applied mutatis mutandis for the revision.

1. Computational errors and typographical mistakes in final decisions can be corrected within five years of their issuance, upon request or ex officio, by the authority responsible for them.

2. The same legal remedies available against the decision may be pursued against the correction or the refusal thereof.

1. The provisions of the tax law apply to the additional tax. The assessment authority is responsible.

2. The right to initiate an additional tax procedure expires ten years after the transfer of ownership, for which an assessment was unjustly omitted or no complete legally binding assessment was made.

3. The right to determine the additional tax expires fifteen years after the transfer of ownership.

1. The right to tax assessment expires five years after the transfer of ownership. § 12b paragraphs 2 and 3 remain reserved.

2. The provisions of the Tax Act apply to the commencement, suspension, and interruption of the statute of limitations.

3. The right to levy taxes is in any case time-barred fifteen years after the transfer of ownership took place.

1. For tax criminal law, the provisions of the Tax Code shall apply.

2. The fine is imposed by the assessment authority or the appellate body.

3. Prosecution for completed tax evasion is time-barred ten years after the transfer of assets triggering the tax, for which the tax was not assessed or was incompletely assessed, or ten years after an unlawful refund or an unjustified waiver was obtained.

4. §§ 19-21 apply to the collection.

1. Appeals against decisions of the assessment authority are permissible by way of objection according to the Administrative Procedure Act, and appeals against objection decisions can be made to the Administrative Court. The Cantonal Court also has the authority to exercise discretionary control.

2. The acquirer and the Cantonal Tax Office are entitled to file an objection and to appeal to the Administrative Court.

3. The deadlines for legal remedies are 30 days.

4. If, in the appeal proceedings, the canton and the assessing municipality are defeated, they are generally required to bear the procedural costs.

1. The tax becomes due upon the final determination of the assessment.

2. ...

3. After the expiration of the objection period, the tax amount shall bear interest at a rate to be determined by the Government Council. An objection and an appeal to the Administrative Court do not suspend the accrual of interest.

1. A statutory lien for the tax claim, which takes precedence over other liens in rank, exists for a period of two years from the due date.

2. Anyone who demonstrates a concrete interest in purchasing a property can request information from the assessment authority regarding the existence and probable amount of liens on the property for property transfer tax claims.

1. The tax claim becomes statute-barred five years after its final assessment.

2. The provisions of the tax law apply to the commencement, suspension, and interruption.

3. The statute of limitations applies in any case ten years after the tax has been finally determined.

1. Provisions of the tax law shall be applied mutatis mutandis to payment facilities and remission.

2. Applications for payment facilities or remission must be submitted to the municipality. The municipality makes the final decision on the granting of payment facilities.

3. The municipality can grant partial or full remission for the municipal and state share up to an amount determined by the government council. The government council also regulates jurisdiction in other cases.

1. The tax revenue, including fines, shall be allocated as follows

a. * 30 percent to the municipality in which the property is located,

b. * 70 percent to the canton, after deducting an assessment and collection commission set by the government council.

1. The municipalities are responsible to the state for the correct collection and timely delivery of taxes. They are directly liable for the actions and omissions of the municipal bodies entrusted with this task.

2. The tax amount balance existing at the end of the month must be transferred to the canton within 15 days. In the event of a delay in delivery, an interest rate determined by the government council shall be imposed.

1. The municipalities are required to submit a statement of account regarding the assessed property transfer taxes to the cantonal tax office at the end of each year.

1. The Tax Authority of the Canton administers the execution of this law and exercises direct supervision over the property transfer tax system.

2. It issues the directives and orders necessary for their correct and uniform application. In particular, it regulates the electronic recording and processing of data, as well as their exchange with municipalities and taxpayers, and determines the tax forms.

3. It may issue binding preliminary decisions for the assessment authority. The assessment authority is usually to be consulted beforehand.

1. Transfers of property ownership that occurred before the enactment of this law are taxed according to the previous law, regardless of the timing of the tax assessment. The new provisions apply to the procedure.

2. The application of § 7 paragraph 2 is limited to the cadastral values newly determined under the Valuation Act of June 27, 1961, as amended on June 21, 1988. For the remaining cadastral values, the tax is calculated according to the previous law.

1. Upon the commencement of this Act, the following are repealed

a. Law concerning the Transfer Fees of November 30, 1897[12],

b. Ordinance on the Collection of Transfer Fees of February 11, 1898[13].

1. The property transfers that occurred prior to the entry into force of this amendment will be taxed according to the previous law, regardless of the time of assessment. The relevant date is the day of registration with the land registry or the day of the respective contract conclusion, if no land registry entry occurs. The new provisions apply to the procedure.

2. Additional taxes for property transfers occurring before January 1, 2001, will be imposed according to the old law. The new law applies to the procedure, as well as to the statute of limitations if it has not yet occurred as of January 1, 2001.

3. Fines under § 14 for property transfers occurring before January 1, 2001, will be issued according to the old law, provided that the new law is not more lenient for the person concerned. The new law applies to the procedure, as well as to the statute of limitations if it has not yet occurred as of January 1, 2001.

1. This law shall come into force on January 1, 1984. It is to be published and is subject to an optional referendum.