Law on the Official Valuation of Real Estate Property

The values of real estate, established through official appraisal, serve as the basis for calculating public levies (taxes, contributions, fees).

1 The official valuation operation of real estate (hereinafter: "funds") and water rights is governed by the present law.

2 For the purposes of this law, funds are considered to be real estate properties, independent and permanent rights registered in the land register, mines, and co-ownership shares of a property.

3 The following rights or things permanently connected to a property also pertain to it

a) constituent parts and accessories permanently connected to it within the meaning of Articles 642, 644, 645, and 704 of the Swiss Civil Code (SCC);

b) movable constructions, if there is an intention of their permanent belonging to the property;

c) constructions on another's land without an independent and permanent right of surface.

1 Not subject to official valuation are

a) funds that do not allow for exploitation and therefore do not generate income;

b) funds owned by the Canton and the Municipalities, to the extent that their tax exemption is provided for by law;

c) funds owned by the Confederation, insofar as federal law excludes their taxation;

d) funds owned by all other corporations and institutions for which the law provides for their tax exemption.

2 Should an official valuation become necessary, public assets shall be valued in accordance with the present law.

1 In the valuation estimate, all appurtenances, rights, and encumbrances recorded in the land register that have a significant impact on the market value of the properties must be taken into account.

**2 If of minor importance, the elements referred to in paragraph 1 are included in the overall valuation of the property; the limits are set by the regulation.**

Water resources and water power are valued in the factual and legal state in which they are at the time of the appraisal.

1 The official valuation figures for the land and water resources of all the Municipalities of the Canton shall be subject, for the first time, to a general revision based on a program defined by the Council of State.

2 The new valuation figures shall come into force simultaneously for all Municipalities.

3 Subsequent general revisions shall be ordered by the Council of State, 20 years after the previous valuation came into force.

1 During the period between two general revaluations, official estimated values are subject to intermediate updates by adopting percentages of increase or decrease if, according to the Council of State, the influencing factors on the valuation of properties, as per Art. 19, show significant changes.

2 Intermediate updates occur in four-year cycles and may concern only individual districts, as well as specific zones within a Municipality with similar characteristics.

3 The Council of State decides on intermediate updates based on the preliminary opinion of the competent Service, prepared after a verification extended to the entire Canton.

1 Municipalities are obliged to provide timely communication to the competent cantonal service, as referred to in Art. 27, of every new or renovated construction following a notification or a building application, as well as of every modification to the master plan and other changes apt to determine a particular update of the official estimated value. The procedure is defined by regulation.

2 The new valuation is carried out based on the general influencing factors referred to in Art. 19 in force at the time of the last general revision or the last intermediate update and enters into force with a decree from the Council of State.

1 Should the basic conditions for the valuation of real estate undergo essential and permanent changes, such as to render the official valuation figures manifestly unfounded, an exceptional revision thereof shall be initiated ex officio, upon application by a party or by the Municipality.

2 Changes in value caused by factors contributing to the general variation of valuation figures do not give rise to exceptional revisions.

3 Applications for revision, accompanied by the notice from the Municipality, must be submitted to the Council of State for decision.

4 In case of approval, the Council of State shall order a new valuation.

Building plots according to this Law are those mentioned in Articles 15 and 23 of the Federal Act on Spatial Planning (Spatial Planning Act, SPO), namely

a) plots included in the building zones of the Master Plans (P.R.), urbanized or designated for urbanization within 10-15 years, with the exception of those subject to the Federal Act on Rural Land Law of 4 October 1991 (Rural Land Law Act, RLLA);

b) plots which, despite being outside the Master Plan (P.R.), are already built upon; these are to be considered as building plots at least with regard to the complementary area to buildings and therefore fall under the provisions of Articles 24 SPO and 71-73 LALPT.

1 Agricultural land according to Art. 16 Spatial Planning Act (LPT) and the Federal Act on Rural Land Rights (LDFR) means

a) land suitable or used for agricultural or horticultural purposes;

b) land that, in the general interest, must be used by agriculture;

c) land that, although located in a building zone, is subject to the LDFR;

2 Agricultural land is valued at its agricultural income value according to the provisions established by regulation.

1 All funds subject to forestry legislation are considered forests and valued as such.

2 For valuation purposes, the forestry utilization of real property is assimilated to agricultural utilization.

1 The general revaluation of the estimates of building, built, agricultural, and woodland properties takes place simultaneously.

2 Interim updates may occur separately, by single category.

1 The value of funds without specific designation (Art. 28 lit. “n” LALPT) is uniformly indicated for the entire Canton, on the occasion of the general revision of valuations.

2 Such funds are not subject to interim updates, except in cases of permanent changes to their designation or use.

1 Buildable land is valued according to its market value, depending on its degree of urbanization.

2 Developed properties must be valued as an economic unit comprising buildings and the related annexed land.

3 Depending on the extent of the area annexed to the buildings, an adjustment of the value is made, it being understood that land reserves manifestly exceeding the character of complementarity are valued separately, according to their function and their full market value.

1 The market value of a property is considered to be the price normally obtainable for a similar object in a free transaction. Exceptional or personal circumstances that may influence an individual transaction are not taken into account.

2 The market value of a developed property (building plus annexed land) is determined by taking into account both the metric value and the income value, according to the weighted average defined by the regulation.

3 The regulation contains the necessary tables indicating the factors applicable to individual types of developed properties and the data that must be provided by owners for the verification of the appraisal result.

1 The metric value of the land is determined by comparing the average prices of similar properties in comparable areas.

2 The metric value of a building corresponds to the new replacement value of the construction and ancillary costs, depreciated according to age based on the criteria defined by the regulations.

3 The metric value of the developed property comprises the value of the building plus the value of the land. The latter may be reduced depending on the rationality of its exploitation.

1. **Income Value**

The income value is obtained by capitalizing the gross income. For premises that are vacant at the time of assessment, the gross income is to be calculated based on the presumed income, which takes market values into account.

2. If it is not possible to reliably assess the direct uses of the property by the owner or any usufructuary, the income value may be considered by means of corrective factors determined according to the regulation. These factors are determined based on similar cases with ascertained and significant market incomes.

3. Where there is a manifest discrepancy between the declared income and the presumed income, the appraisal authority may adjust the ascertained income to the values normally achievable on the market.

4. Maintenance, insurance, and administration expenses, as well as interest expenses, depreciation, and taxes, are not deducted from the gross income.

5. The capitalization rate corresponds to the average rate applied by credit institutions indicated in the regulation for first-ranking mortgages, calculated over a significant period, plus an additional rate. The criteria for calculating the additional rate are defined by the regulation, taking into account the intended use, age, quality of construction, and general management costs.

The following general factors influence the official estimated value

a) average land prices;

b) the mortgage rate; (see Art. 18 para. 5);

c) the average cost of rents;

d) the average cost of constructions;

e) for energy production facilities (hydropower), the average cost of energy; this is calculated annually based on the energy price index adopted by the Ticino Electric Utility.

Real estate valuations, according to the present law, follow criteria of systematicity and prudence; they do not serve in particular for the determination of expropriation values, for which the relevant procedure is provided for according to the Expropriation Law.

1 The market value of land encumbered with self-contained and permanent surface rights corresponds, as a rule, to the income value determined by capitalizing the ground rent at the average rate practiced by the credit institutions, specified in the regulation, for first-rank mortgages over a significant period.

2 The valuation also takes into account the conditions contained in the contract establishing the surface right.

3 If the right is granted free of charge or at a preferential price, the value of the land corresponds to the income value normally achievable. For land located outside the building zone, the latter must correspond at least to the agricultural income value.

4 If the land is partially encumbered, a separate valuation is carried out depending on the area affected by the right.

The market value of independent and permanent surface rights is determined by analogy with the criteria established by this law for the valuation of land, with due regard to the conditions set out in the deed of constitution.

For developed land intended for sport, leisure, and other activities as defined by the regulation, if it is not possible to ascertain a reliable gross income, the estimated value can be determined based on the metric value depreciated according to the degree of obsolescence.

1 Water rights are appraised at their market value, i.e., according to the profit achievable based on their power and continuity.

2 Facilities directly intended for energy production, including the related land, are included in the market value of the water rights.

3 Facilities only indirectly intended for energy production, including the related land, are appraised separately.

4 The regulation specifies the valuation criteria.

The estimated value of unfinished constructions is determined only on the part of the construction already usable.

1 The Council of State decides on the general revision and subsequent updates of property valuations.

2 It issues the necessary implementing and technical regulations and defines the supervisory authority for official valuations.

1 Official valuations of properties located within the Canton's territory are carried out by the designated authority as defined by the regulations (hereinafter: "the Authority").

2 During the general revision of valuations, the Authority, after consulting with the Municipalities, defines the framework reference values for land, subdivided into areas with similar characteristics.

3 These values are defined taking into account data regularly communicated by the Land Registries concerning every new transaction within the Canton.

4 The regulations establish the relevant procedure.

The Municipalities, in an advisory capacity, lend their collaboration in the execution of appraisal operations.

1. The data collection system via form is introduced as support for the preparation of valuations (valuation declaration).

2. Owners, and generally all holders of real rights that may influence the valuation, are required to provide the competent Authorities with information and documents useful for the purpose of determining values.

3. They must also permit, with prior notice, on-site inspections by the valuation authorities.

4. For the properties referred to in Articles 11, 12 and 14, the data collection system is established by the regulation.

1 The revision procedure begins with the transmission of forms by the Municipalities to the owners of properties registered in the Canton.

2 The forms, duly completed, must be returned to the Authority via the Municipalities by the interested parties within the deadline established by the regulation.

3 The Authority is entitled to carry out checks on the transmitted data, with potential summoning of the interested parties.

1 If the owner or the holder of real rights fails to comply with their procedural obligations, despite being warned, the Authority shall perform an ex officio valuation based on a conscientious assessment.

2 Any resulting costs may be charged, in whole or in part, to the party who made them necessary by culpably violating their procedural obligations.

[1] 1 The Authority, through the Municipality, communicates the assessment decisions concerning building plots or built properties (containing the assessment and valuation data) to all interested taxpayers, together with the notice of publication.

2 The assessment decisions for non-building plots and unbuilt properties are merely deposited at the Municipal Chancellery during the publication period foreseen for other properties.

3 The official assessment values are deposited for public inspection through the respective Municipalities for a period of 30 consecutive days. The regulation defines the modalities of execution.

[1] Art. amended by L 18.12.2003; in force since 13.2.2004 - BU 2004, 64. Errata corrige: BU 2007, 693.

The procedure for intermediate, specific, or exceptional updates is determined by the regulation.

1 Property owners or other holders of real rights may submit a complaint to the Authority against any new determination or update of valuation, within 30 days from the expiry of the publication period.

2 The complaint, duly reasoned, must be submitted through the Municipality.

3 The complaint does not have suspensive effect.

4 Late complaints are not admissible. Reinstatement of deadlines is granted if it is proven that the non-observance thereof is attributable to military service, illness, absence from the Canton, or other serious reasons concerning the owner or their representative.

Within 30 days from the expiry of the publication deadline, the Municipalities transmit the received complaints to the Authority, with the right to submit observations.

1 The Authority processes complaints, proceeding on the principle of official maximum in the taking of evidence.

2 The Authority may also amend to the detriment of the owner or other holder of real rights a decision that, following the complaint procedure, proves to be manifestly erroneous.

Appeal to the Expropriation Tribunal [2]

[2] Marginal note amended by L 24.3.2010; in force since 18.05.2010 - BU 2010, 185.

[3] 1 An appeal against the authority's decision may be lodged with the Expropriation Tribunal within a period of thirty days.

2 No exchange of pleadings shall take place; if it deems necessary, the Tribunal may request clarifications or observations from the Authority.

Appeal to the Cantonal Administrative Tribunal [4]

[3] Art. modified by Law of 24.3.2010; in force since 18.05.2010 - BU 2010, 185; previous modifications: BU 2000, 282; BU 2005, 143.

[4] Marginal note modified by Law of 24.3.2010; in force since 18.05.2010 - BU 2010, 185.

[5] An appeal against the decision of the Expropriation Tribunal may be lodged with the Cantonal Administrative Tribunal within a period of thirty days.

[5] Art. modified by Law of 24.3.2010; in force since 18.5.2010 - BU 2010, 185; previous modification: BU 2005, 143.

[6] 1 Unless otherwise provided by the present law, Articles 36 and 38 paragraph 1 letter a) of the Cantonal Expropriation Law, as well as the Administrative Procedure Law of 24 September 2013, are applicable. [7]

2 The procedure is governed by the principle of official inquiry (ex officio investigation).

3 New facts may be adduced and new means of evidence proposed with the appeal.

4 The appeal does not have suspensive effect.

5 The Court is not bound by the appellant's requests and may reform the decision even to the appellant's detriment.

6 Court costs shall be borne by the losing party.

[6] Art. amended by L 24.3.2010; in force since 18.5.2010 - BU 2010, 185.

[7] Par. amended by L 24.9.2013; in force since 1.3.2014 - BU 2013, 482.

All official appraisal values of properties located within the Canton's territory are defined based on the factual and legal situation prevailing at the decisive moment established by the Council of State, which also determines the simultaneous entry into force of the new appraisal values and any subsequent updates.

1 Errors in calculation, writing, and transcription contained in decisions or judgments that have become final and binding may be rectified at any time, upon application by a party or ex officio, by the authority that committed them.

2 The rectification of errors or the refusal thereof may be challenged with the same legal remedies admissible against the decision or judgment concerned.

3 The new assessment takes effect from the request for rectification, respectively from the notification of the decision in the case of ex officio rectification.

1 The Council of State may, at any time, upon request of a party or ex officio, order the rectification of definitive valuations that prove to be manifestly unreliable.

2 The modification of the valuation or the refusal thereof may be challenged with the same legal remedies admissible against the relevant decision or judgment.

3 The new valuation takes effect from the date of the request for rectification, or from the notification of the decision in the case of an ex officio rectification.

1. Anyone who, despite a warning, intentionally or negligently violates an obligation incumbent upon them under the present law or a provision enacted in application thereof, in particular

a) fails to submit the data collection form;

b) fails to fulfil the obligation to provide information and documents or does not permit on-site inspections;

c) fails to appear at summonses,

shall be punished with a fine up to a maximum of CHF 5,000.-- per real estate property.

2. Anyone who, intentionally or negligently, causes a valuation decision to be unduly omitted or to be manifestly unreliable, shall be punished with a fine up to a maximum of CHF 30,000.-- per real estate property.

3. The fine shall be imposed by the authority defined by the regulations. The Law of 20 April 2010 on procedure for contraventions is applicable. [8]

[8] Para. amended by Law of 20.4.2010; in force since 1.1.2011 - BU 2010, 261.

1 The administrative offense procedure is time-barred

a) in two years after the final closure of the proceedings during which the procedural obligations referred to in Art. 43, para. 1 were violated;

b) in ten years for the cases mentioned in Art. 43, para. 2 after the deadline set for the submission of the valuation declaration referred to in Art. 29.

2 The statute of limitations is interrupted by any procedural act relating to the administrative offense, but cannot extend for more than half of the initial duration in total.

... [9]

[9] Art. annulled by judgment of March 20, 1998, by the Federal Tribunal. BGE 124 I 159.

1 Valuation operations underway at the time of entry into force of this law shall be concluded based on the previously existing law.

2 The valuation of new buildings and land affected by changes in the master plan or of other kinds, until the general revision referred to in Art. 6 has commenced, shall occur based on the previously existing law.

3 An appeal against the decision on a complaint by the Cantonal Valuation Office may be lodged with the Expropriation Tribunal. [10]

[10] Para. introduced by Law of 29.11.1999; in force since 1.1.2001 - BU 2000, 282.

1 The valuations from existing general revisions at the time this Law enters into force are, for all their uses, to be considered as follows

- unchanged in municipalities where the general revision entered into force on 1.1.1977, 1.1.1979, 1.1.1981, 1.1.1983, 1.1.1985, 1.1.1987, and 1.1.1989,

- with a 30% reduction in municipalities where the general revision entered into force on 1.1.1991, 1.1.1993, 1.1.1995, and 1.1.1997. [11]

2 … [12]

[11] Sentence amended by L 7.2.1999; in force since 1.1.1999 - BO 1999, 88.

[12] Paragraph repealed by L 7.2.1999; in force since 1.1.1999 - BO 1999, 88.

1 The valuations of new or renovated buildings following general reassessments and existing at the time of the entry into force of this law are, for all their uses, considered as follows

- unchanged in municipalities where the general reassessment came into force on 1.1.1977, 1.1.1979, 1.1.1981, 1.1.1983, 1.1.1985, 1.1.1987 and 1.1.1989,

- with a 30% reduction in municipalities where the general reassessment came into force on 1.1.1991, 1.1.1993, 1.1.1995, 1.1.1997. [13]

2 In municipalities where the general reassessment came into force before 1.1.1991, interested owners may request from the Valuation Office, within 30 days of the publication of this amendment in the Official Bulletin of Laws and Executive Acts of the Canton of Ticino, a 30% reduction in the change in valuation of new or renovated buildings whose valuation came into force from 1.1.1991 onwards. [14]

[13] Phrase amended by Law of 7.2.1999; in force since 1.1.1999 - BO 1999, 88.

[14] Paragraph amended by Law of 7.2.1999; in force since 1.1.1999 - BO 1999, 88.

1 The Council of State determines, within the scope of application of Art. 50 para. 2, the entry into force of the equalization values provided for in Articles 47 and 48.

2 It publishes the list of concerned municipalities with their respective equalization values in the Cantonal Official Gazette.

3 The equalization values remain in force until they are replaced by the assessments prepared on the basis of the general revisions provided for in Art. 6.

1 Upon expiration of the period for exercising the right of referendum, the present law, together with its annex amending other laws, shall be published in the Official Bulletin of Laws and Executive Acts of the Canton Ticino.

2 The Council of State shall determine the date of its entry into force. [15]

Published in OB 1996, 470 and OB 1997, 44.

[15] Entry into force: January 1, 1997 - OB 1996, 479.