Ordinance on the Official Valuation of Real Estate and Real Estate Liens (Valuation and Mortgage Ordinance) - Scope

1. This regulation applies to the valuation of real estate for the establishment of mortgage rights, the valuation of properties and facilities for land and irrigation cooperatives, the determination of the credit value in the event of an inheritance division, as well as to valuations carried out on behalf of third parties.

2. It applies to valuations under tax law insofar as no special provisions contradict.

1. Pursuant to the provisions of this ordinance, properties shall be appraised with their components in accordance with Article 655 of the Swiss Civil Code (SCC).

2. The rights and burdens associated with the properties or facilities are to be taken into account during the valuation.

1. Agricultural land is defined as a property that, according to agricultural legislation, is suitable for agricultural or horticultural use.

1. For agricultural properties, the following are to be determined depending on the task

a. the income or tax value;

b. the mortgage appraisal value (encumbrance limit) for the establishment of the mortgage according to Art. 793 et seq. of the Swiss Civil Code (Zivilgesetzbuch, ZGB);

c. the market value;

d. the rental value of the residences.

2. The income or tax value and the mortgage appraisal value (encumbrance limit) are determined in accordance with the provisions of the Federal Act on Rural Land Law and the implementing regulations issued thereunder.

1. The income value is also the tax value.

2. The mortgage appraisal value (encumbrance limit) is considered the assessed value according to the Federal Act on Rural Land Law.

3. For forests, a specific rate applies per square meter, which is to be determined by the cantonal Office for Forestry and Spatial Development.

1. Non-agricultural properties are those that do not serve agricultural purposes according to agricultural legislation. Agricultural properties acquired for the purpose of speculation or investment and that obviously serve these purposes are also treated as non-agricultural properties.

2. Properties used exclusively or primarily for commercial or industrial livestock holdings, nurseries, tree nurseries, or similar enterprises are treated as non-agricultural properties.

1. For non-agricultural properties, the following must be determined depending on the assignment

a. the market value;

b. * the tax value[9].

c.-d. * ...

1. The basis for calculating the tax value of non-agricultural properties is the actual value or income value determined by the tax administration.

1. The fair market value corresponds to the sale price achievable on the valuation date under normal circumstances and without regard to unusual or personal circumstances. The term fair market value is synonymous with the term market value.

2. Prices achieved due to personal or otherwise unusual circumstances in individual cases, such as prices among relatives, collector's prices, and speculative prices, are not to be considered.

1. In determining the market value of undeveloped land, particular consideration must be given to local conditions, location, the likelihood of development, and the degree of access.

1. In determining the market value of properties that serve predominantly or exclusively commercial or industrial purposes, particular consideration must be given to the technical depreciation, the suitability of the facilities, the potential uses, and the possibilities for the sale of the property.

1. The real value of a property consists of the sum of the land value and the current value of the buildings.

2. The land value is considered to be the value that land in a building area with a similar location has achieved and is likely to achieve over a prolonged period.

3. The land value should be in a reasonable proportion to its utilization and the overall investment value of the property (location categories).

4. The current value of the buildings corresponds to the new value, minus the depreciation corresponding to the age of the buildings.

1. The income value of a property corresponds to the capitalized rental or lease value of the property at a rate that takes into account an appropriate return on the invested capital and the expenses incurred in the management of the property.

2. Income also includes the benefits of the property that serve the personal needs of the owner.

3. The income value of woodland is calculated based on the use regulated by the management plan, or according to the use permitted by sustainable management if no management plan exists. If a woodland has not been utilized, the calculation is based on the annual wood growth expected under local conditions.

1. Within a municipality, real estate properties are assigned to specific land value zones.

2. For each land value zone within the construction zone, the tax-relevant land value is determined.

3. Outside of construction zones, a reduced land value applies to developed properties, depending on the distance to the nearest land value zone.

4. Construction zones without an assigned land value (zones for public buildings and facilities, monastic zones, spa zones, camping zones, green zones, etc.) are individually assessed by the tax authority, taking into account their respective usage.

5. The governing council issues a land value plan for each municipality with a maximum of ten land value zones, ranging in price from CHF 200 to CHF 1,400 per m². The price range can be decreased according to market developments or increased by a maximum of ten percent.

1. The government council establishes the factors for the schematic, formula-based evaluation for property assessment in accordance with Article 23 of this regulation and adjusts them as needed. Such an adjustment applies to all municipalities simultaneously, regardless of the rotation principle according to paragraph 2.

2. The evaluation of properties is conducted for each municipality every seven years in a separate calendar year in the following order: Sachseln, Lungern, Sarnen, Giswil, Alpnach, Kerns, Engelberg.

1. The official market or mortgage value appraisal is generally to be performed based on a thorough inspection of the property or facility.

2. The property owner or a representative must attend the inspection of the appraisal object, provide information, and, upon request, allow inspection of purchase, rental, and lease agreements, construction plans and cubic calculations, as well as insurance policies.

1. If there is a significant change in the condition, legal or actual quality, or use of a property, a new assessment shall be made ex officio or at the request of the landowner.

2. Reasons include, in particular

a. * New construction, expansion, conversion, renovation, or demolition of permanent structures;

b. * Division or consolidation of properties, provided this results in a change in their overall value;

c. * Zoning changes (land use planning).

3. The cantonal tax administration may conduct new assessments following transfers of ownership.

4. The assessment request must be submitted to the cantonal tax administration.

1. The cantonal tax administration determines the taxable value.

2. It may, in particular, consult experts, conduct inspections or audits, and request access to additional documents such as purchase agreements, construction plans, invoices, insurance policies, rental mirrors, lease agreements, etc.

3. The cantonal tax administration may set the taxable value at its due discretion if the assessment cannot be definitively established due to a lack of reliable documentation.

1. The retrieval of data by the tax administration in the inquiry procedure is carried out in accordance with the provisions of the Cantonal Register Harmonization Act and the Cantonal Data Protection Act.

1. If an estimated value proves to be substantially incorrect due to the disregard of essential facts or as a result of incorrect application of the law, it shall be re-assessed ex officio.

2. Calculation errors are corrected by the cantonal tax administration.

1. The cantonal tax administration must record a protocol for each official market value or mortgage valuation, which allows for the review of the valuation result.

2. ...

1. The taxable value is communicated to the taxable person in the regular assessment decision. Estimates that do not concern the taxable value are communicated to the property owner, the beneficiary, and other clients through a written decision.

2. The Office for Agriculture and Environment submits the agricultural appraisal value for the encumbrance limit to the responsible land registry.

3. ...

1. The land register reports the establishment of condominium ownership and co-ownership shares, changes of ownership, and property mutations to the cantonal tax administration. The cantonal tax administration is entitled to inspect the land register data insofar as it is necessary for the fulfillment of its duties.

2. ...

1. The Executive Council regulates non-agricultural tax assessments in implementing provisions.

1. The assessed values determined under the previous law shall remain valid until the property is re-evaluated under Article 16 or Article 18.

2. As a basis for the reassessment of existing perimeters, the initial values stated in the individual perimeter records shall be used. In order to ensure an appropriate and equitable evaluation, adjustments shall be made if necessary.

1. ... [15]

1. The Appraisal and Mortgage Ordinance of July 3, 1986, is repealed.

1. The Government Council shall determine when this ordinance enters into force.