1 Foundations and Organization, Public Levies » 17 Public Levies » 172 Cantonal Taxes (LSchätzG)

Subject and Scope of Application

1 Under this Act, the imputed rental value and the wealth tax value of agricultural

properties and agricultural enterprises are determined.

2 A property is considered agricultural if it falls within the scope of the

Federal Act on Rural Land Law (BGBB) of October 4, 1991. The classification into

agricultural properties and agricultural enterprises is carried out analogously to Art. 7 para. 1 BGBB or Art. 5 lit. a BGBB in conjunction with § 22

para. 2 of the Act on Agriculture (LG) of November 26, 2003.

§ 42 para. 2 sentence 2 StG remains reserved.

Relationship to the Tax Law and its Other Implementing Provisions

Where this law contains no specific regulation, the general provisions of the Tax Law and its other implementing provisions shall apply.

Linguistic Equality

Personal pronouns and titles refer equally to members of both sexes.

I. Definition of Terms

1 Forestland used for forestry is equivalent to agricultural land.

2 Usufruct is equivalent to ownership.

**II. Principles**

1. Valuation Objects

The subject of valuation comprises agricultural properties and agricultural enterprises within the meaning of Article 42 paragraph 1 of the Tax Law (StG), which fall under the scope of the Federal Act on Rural Land Rights (BGBB) and are owned by natural persons and by non-tax-exempt legal entities within the meaning of Article 81 of the Tax Law (StG).

2. General Reassessment

1 The Cantonal Council decides on undertaking a general reassessment in accordance with §§ 22 para. 3 and 42 para. 3 of the Tax Law (StG). The conditions on December 31 preceding the decision are decisive for the reassessment.

2 The new assessment values shall apply for the first time in the third tax period following the Cantonal Council's decision. They shall remain valid until the next general reassessment, unless an individual assessment is carried out in the interim in accordance with § 7 et seq.

3 The reassessment shall be waived if, for the property or business, an individual assessment reason arises under § 7 between the Cantonal Council's decision and the applicability of the new general assessment values.

3. Individual Valuation

a) Prerequisites

1 Individual valuations of agricultural land and agricultural enterprises are to be carried

out ex officio in the event of changes in inventory, value, and use.

2 Changes in inventory, value, and use include, in particular

– Rezoning.

– Subdivision or consolidation of land plots.

– New construction, conversion, expansion, addition, or demolition of permanent

structures.

– Granting of economically significant rights and encumbrances.

– Change of purpose for permanent structures.

– Change in farm size, including leased land.

3 If a natural person acquires an agricultural property that has not yet been valued, an

individual valuation is to be carried out ex officio.

4 For conversions, expansions, and additions, an individual valuation is only carried

out from a construction sum of CHF 200,000.--.

b) Valuation Date

1 The circumstances prevailing at the time the valuation event occurs are decisive for determining the valuation figures.

2 For structural alterations, the valuation applies from the point in time when the works are sufficiently advanced that use is possible; for new constructions, at the latest from the occupancy date.

4. Scope of Valuation

In the case of general revaluations and individual valuations, the entire agricultural property and all properties belonging to the agricultural enterprise must always be revalued.

5. Period of Validity

Estimates are valid until the next general re-estimation or individual estimation.

III. Imputed Rental Value

Principle

1 The imputed rental value of agricultural property corresponds to the maximum permissible lease payment according to Art. 2 et seq. of the Ordinance on the Assessment of Agricultural Lease Payments of 11 February 1987 (Lease Payment Ordinance) and must be determined according to the rules of the Federal Valuation Guide (Annex to the Ordinance on Rural Land Law of 4 October 1993, VBB). The normal living space requirement according to § 22 para. 2 sentence 2 StG, however, includes the entire farm manager's dwelling.

2 The imputed rental value of non-agricultural property is fully determined according to non-agricultural criteria pursuant to the currently valid cantonal non-agricultural valuation guide.

Farm Manager's Residence

Owners who personally cultivate the agricultural property with the intention of regularly generating profit, and who are entitled to standard housing needs according to the Federal Valuation Instructions, have the right to an agricultural imputed rental value for the entire farm manager's residence, if

a) at least the standard labor unit according to Art. 7 para. 1 BGBB or Art. 5 lit. a BGBB in conjunction with § 22 para. 2 LG is necessary for the cultivation of the agricultural enterprise, or

b) the income from agricultural activity amounts to at least 20% of the total earned income of the husband and wife.

Other Living Space

The other living space is to be fully assessed according to non-agricultural criteria, in accordance with the currently valid cantonal non-agricultural valuation guidelines.

Adjustment of the Imputed Rental Value

The imputed rental value must be adjusted to the changed circumstances, based on the last valuation, in the following cases

a) if the extent of the owner-occupied living space changes, in that the owner uses a larger or smaller portion thereof or another area of the property themselves;

b) if the standard labor unit required for the management of the agricultural enterprise or the agricultural earned income changes, thereby establishing or removing the entitlement to an agricultural imputed rental value for the farm manager's residence within the meaning of § 12.

**IV. Net Wealth Tax Value**

Principle

1 The wealth tax value of agricultural land corresponds,

according to § 42 para. 2 StG, to the capitalized earnings value. This is determined

according to the federal valuation guidelines.

2 Agricultural use of land within the meaning of § 42 para. 2

StG exists when the requirements of an agricultural enterprise are met

(Art. 7 BGBB and § 22 para. 2 LG).

3 The wealth tax value of non-agricultural ancillary businesses corresponds

to the capitalized earnings value from non-agricultural use. This requires that

these non-agricultural ancillary businesses either fall under Art. 24b of the Federal

Act of June 22, 1979, on Spatial Planning (RPG) or were established before

September 1, 2000, and a spatial planning permit exists. For other non-

agricultural ancillary businesses and all non-agricultural ancillary trades, the market value

according to the currently valid cantonal non-agricultural valuation guidelines is decisive

for the wealth tax value.

Agricultural Businesses

The wealth tax value of agricultural businesses corresponds to their capitalized earnings value.

Agricultural Properties

1 The net wealth tax value of agricultural properties belonging to an agricultural business is determined analogously to § 16.

2 The net wealth tax value of agricultural properties not falling under paragraph 1 is determined as follows

– Land and farm buildings at their capitalized earnings value

– Residential buildings at their market value according to the currently valid cantonal non-agricultural valuation guidelines.

V. Organization and Procedure

Viewings

1. Valuations are made on the basis of a viewing by the cantonal tax administration. The owner is usually informed of the date of the viewing at least ten days in advance.

2. Individual valuations are usually made without a viewing due to changes in the plot area or after the demolition of a building.

Participation of the Owner

The owner is entitled, and if required by the Cantonal Tax Administration, obliged to attend the valuation. The owner is responsible for ensuring that the property can be accessed without hindrance. They must provide all necessary information and make available all documents that are relevant for the valuation.

Opening of Valuation Values

The wealth tax value and the imputed rental value are communicated to the owner in the form of a self-contained appealable decision. With this decision, the owner receives the valuation report.

VI. Transitional and Final Provisions

Timing of the next general revaluation for properties that have been released from the scope of the BGBB

If the last valuation was carried out according to agricultural criteria, the timing of the next general revaluation is determined by this valuation ordinance, even if the property has been released from the scope of the BGBB.

Imputed Rental Value

The references in Sections 11 and 13 relate to the Valuation Regulations concerning the official tax valuation of non-agricultural properties from July 1, 1984, until a new cantonal non-agricultural valuation guide comes into force, insofar as the cantonal tax law contains no deviating provisions.

Taxable Wealth Value

The references in Sections 15 and 17 refer to the Valuation Regulations on the tax office valuation of non-agricultural properties of July 1, 1984, until new cantonal non-agricultural valuation ordinances and valuation instructions come into force, to the extent that the cantonal tax law does not contain deviating provisions.

Abolition of Previous Law

With the entry into force of this Ordinance, all provisions contradicting it are hereby repealed, particularly Sections 13 and 14 of the Ordinance on the Official Tax Valuation of Real Estate of April 17, 1984.

Partial Revision 2021

1 A general revaluation will be carried out with a valuation basis of December 31, 2017.

2 The valuation figures from the general revaluation will be applied for the first time in the tax period 2021, unless an individual valuation according to § 7 f. has been carried out previously.

Entry into Force and Publication

1 This Act is subject to a referendum in accordance with §§ 34 or 35 of the Cantonal

Constitution.

2 It shall be published in the Official Gazette and, after its entry into force, included in the

Collection of Laws.

3 The Government Council shall be entrusted with its enforcement. It shall determine the date

of its entry into force.

1 This Act was enacted as an ordinance subject to an optional referendum: GS

20 519 with amendments from 21 October 2009 (Agriculture Act, GS 22-78a), from

25 September 2013 (Cantonal Council Resolution adaptation to new Cantonal Constitution, GS 23-80h), from 17 December

2013 (Government Council Resolution adaptation to new Cantonal Constitution, GS 23-97) and from 16 December 2020

(GS 26-38).

2 SRSZ 172.200.

3 Para. 2 as amended on 21 October 2009; Para. 1 as amended on 25 September 2013.

4 Version of 25 September 2013.

5 Paras. 1 to 3 as amended and Para. 4 repealed on 16 December 2020.

6 Para. 1 as amended on 16 December 2020.

7 SR 221.213.221.

8 SR 211.412.110.

9 Sub-para. a as amended on 21 October 2009.

10 Sub-para. b as amended on 21 October 2009.

11 Para. 2 as amended on 21 October 2009.

12 SR 700.

13 SRSZ 172.113.

14 Newly inserted on 16 December 2020.

15 Heading, Paras. 1, 2 and 3 as amended on 17 December 2013.

16 Entered into force on 1 July 2004 (Official Gazette 2004 1117); amendments from 21 October 2009 on 1 January 2010 (Official Gazette

2009 2870), from 25 September 2013 on 1 January 2014 (Official Gazette 2013 2851), from 17 December

2013 on 1 January 2014 (Official Gazette 2013 2974) and from 16 December 2020 on 1 January 2021 (Official Gazette

2021 914).