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

1. Object and Scope

1 This Act determines the imputed rental value and the wealth tax value of non-agricultural properties.

2 A property is considered non-agricultural if it does not fall within the scope of the Federal Act of 4 October 1991 on Rural Land Rights (BGBB). Article 42 paragraph 2 sentence 2 of the Tax Act (StG) remains reserved.

2. Relationship to Tax Law and its Other Implementing

Provisions

Insofar as this law contains no regulation, the general provisions of tax law and its other implementing provisions shall apply.

3. Linguistic Equality

Terms referring to persons apply equally to members of both sexes.

4. Definition of Terms

Usufruct is equivalent to ownership, and lease is equivalent to rent.

II. Foundations

1. Valuation Objects

The subject of valuation comprises real properties within the meaning of § 42 para. 1 StG owned by natural persons and by non-tax-exempt legal entities within the meaning of § 81 StG.

2. General Revaluation

1 A general revaluation of all valuation objects shall be carried out with the valuation basis

of December 31, 2004.

2 The revaluations shall apply for the first time to the tax period 2007

and shall remain valid until the next general revaluation, unless an individual

valuation according to § 8 et seq. takes place in the interim.

3 The valuation of a property within the scope of the general revaluation

shall be omitted if an individual valuation of the entire property

has been carried out between December 31, 2004, and December 31, 2007.

3. Individual Valuation

a) Prerequisites

1 Individual valuations of individual properties are to be carried out ex officio in the event of significant changes in substance, value, and use.

2 Changes in substance, value, and and use include, but are not limited to

– Rezoning;

– Subdivision or consolidation of properties;

– New constructions, alterations, extensions, additions, or demolition of permanent structures;

– Establishment or abolition of building rights and condominium ownership;

– Granting of economically significant rights and encumbrances;

– Change of purpose for permanent structures;

– Exploitation of natural resources, establishment of landfills, and recultivation.

3 If a natural person acquires a property that has not previously been valued, an individual valuation is to be carried out ex officio.

4 For alterations, extensions, and additions, an individual valuation only occurs if the construction sum exceeds CHF 200,000.

b) Valuation Date

1 For the determination of valuation amounts, the conditions at the time the ground

for valuation arose are decisive.

2 For structural alterations, the valuation applies from the time at which the works

are sufficiently advanced to permit use; for new constructions, no later than the

occupancy date.

4. Scope of Valuation

In the case of general revaluations, the entire property must always be revalued. In the case of individual valuations, only the changed parts of the property are to be revalued, insofar as these can be valued separately from the rest of the property for valuation purposes.

5. Period of Validity

Estimates are valid until the next general or individual estimate.

III. Rental Value of Owner-Occupied Homes

1. Principle

1 The target figure for determining the imputed rental value for owner-occupied

residential property is 65 percent of the market rental value.

2 For commercial use of the properties, the rental value is 100 percent of the

market rental value.

3 For properties subject to building rights, the valuation is carried out in accordance

with para. 1.

4 If the owner-occupied living space changes, in that the owner uses a larger or

smaller portion thereof or a different area of the property himself, the values on

the basis of the last valuation shall be adjusted to the changed circumstances.

2. Calculation

1 The market rental value is the rent achievable in a free transaction. To calcu-

late the market rental value, a rent level is determined for the localities listed in the Annex.

2 The rent level is determined from the rents representatively ascertained for each locality. For this purpose, the rents must be converted into standard rental values. Assessment criteria include economic age (current value), construction type, residential location, finish, layout, and heating type. The average of the standard rental values results in the rent level in Swiss Francs per room unit and per year.

3 In individual cases, the relevant market rental value is determined based on the local rent level, taking into account the individual living situation and the assessment criteria according to para. 2.

4 The local rent level is set by the tax administration and updated annually.

5 In appeal proceedings, the taxpayer may request a comprehensible justification for the determination of the current local rent level.

IV. Wealth Tax Value

1. Principle

1 The market value shall apply as the wealth tax value.

2 The calculation of the wealth tax value shall be made within the framework of the following provisions and on the basis of the Valuation Instructions.

2. Market Value

1 The market value corresponds to the purchase price achievable under normal circumstances. It is generally determined from the real value and the capitalized earnings value.

2 The relationship between the real value and the capitalized earnings value is determined by the weighting coefficient. The real value is weighted with a coefficient of one. The weighting range for the capitalized earnings value lies between 0.0 and 5.0 and is determined by the type, use, and marketability of the property. As a rule, the weighting coefficient for the capitalized earnings value for single-family homes and condominium ownership is low, and for multi-family and commercial properties, it is to be set high.

3 The capitalized earnings value for undeveloped land is weighted with a coefficient of 0.0, the capitalized earnings value for single-family homes and condominium units with a coefficient of at least 0.3, and the capitalized earnings value for multi-family and commercial properties with a coefficient of at least 3.0.

3. Real Value

1 The real value is composed of the time value of the structures, the develop-

ment and ancillary construction costs, and the land value.

2 The time value of a building corresponds to the new value reduced by depreciation (technical and economic aging).

3 The land value for all properties is considered to be the market value of undeveloped land.

4. Income Approach Valuation

1 The income approach valuation corresponds to the capitalized annual rental income,

excluding ancillary costs.

2 For general revaluations with a valuation date of December 31, 2004, the

capitalization rate is composed of the weighted average

interest rate for the years 1999 to 2004 for variable first mortgages of the Schwyzer

Kantonalbank and an add-on for management costs.

3 For individual valuations, the capitalization rate is composed

of the weighted average interest rate of the last five years for

variable first mortgages of the Schwyzer Kantonalbank on January 1 of the valuation

year and an add-on for management costs.

4 The capitalization rate is at least 5.4 percent for single-family homes,

at least 6.0 percent for multi-family homes, and at least 6.0 percent for commercial

buildings, industrial buildings, and commercial properties.

5 Management costs include, in particular, operating costs, maintenance costs,

administration costs, risk for rent defaults, and provisions.

V. Organization and Procedure

1. Inspection

1. Valuations are carried out by the Cantonal Tax Administration based on an inspection. The owner is usually informed of the date of the inspection at least ten days in advance.

2. Individual valuations are generally made without an inspection following a change in the property area or after the demolition of a building.

2. Cooperation of the Owner

The owner is entitled, and, if the cantonal tax administration so requires, obliged to attend the appraisal. The owner is responsible for ensuring that the property can be accessed without hindrance. The owner must provide all necessary information and make available all documents that are relevant for the appraisal.

3. Opening of Valuation Figures

The property tax value and imputed rental value are communicated to the owner in the form of an independently contestable decision. Along with this decision, the owner receives a comprehensible valuation report.

4. Implementing Provisions

The Government Council issues the implementing provisions in a valuation

manual. In doing so, it takes into account the guidelines of the currently valid appraisal

handbook of the Swiss Association of Cantonal Real Estate Valuation

Experts and the Swiss Chamber of Appraisal Experts / Swiss

Federation of Real Estate Agents (SVKG and SEK/SVIT).

VI. Final Provisions

1. Abrogation of Previous Law

With the entry into force of this Ordinance, all provisions contrary to it are

repealed, in particular the Ordinance on the Official Tax Valuation of Real Estate of April 17, 1984.

2. Referendum, Publication, Entry into Force

1 This Act is subject to an optional 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, shall be included in the Collection of Laws.

3 The Government Council is entrusted with its implementation. It shall determine the date of its entry into force.

Appendix

Localities for determining the local rent level pursuant to § 12 para. 1

Locality Locality Locality

Alpthal Illgau Rothenthurm

Altendorf Immensee Sattel

Arth Ingenbohl Schindellegi

Bäch Innerthal Schübelbach

Bennau Küssnacht Schwyz

Biberbrugg Lachen Seewen

Brunnen Lauerz Siebnen

Buttikon Merlischachen Steinen

Egg Morschach Steinerberg

Einsiedeln Muotathal Stoos

Euthal Nuolen Studen

Feusisberg Oberarth Trachslau

Freienbach Oberiberg Tuggen

Galgenen Pfäffikon Unteriberg

Gersau Reichenburg Vorderthal

Goldau Rickenbach Wangen

Gross Ried Wilen

Ibach Riemenstalden Willerzell

Wollerau

1 This Act was issued as an ordinance subject to an optional referendum: GS 21-4 with amendments, of September 25, 2013 (KRB adaptation to new Cantonal Constitution, GS 23-80g) and of December 17, 2013 (RRB adaptation to new Cantonal Constitution, GS 23-97).

2 SRSZ 172.200.

3 Para. 1 as amended on September 25, 2013.

4 SR 211.412.11.

5 Version of September 25, 2013.

6 GS 17-493.

7 Heading, paras. 1, 2 and 3 as amended on December 17, 2013.

8 Entered into force on January 1, 2005 (Abl 2005 1410); amendments of September 25, 2013 on January 1, 2014 (Abl 2013 2851) and of December 17, 2013 on January 1, 2014 (Abl 2013 2974).