Abolition is getting closer by the Council of States

The abolition of imputed rental value is one step further. On Wednesday, the Council of States surprisingly approved the solution of a complete system change proposed by the Unification Conference, with 22 votes to 15 and 6 abstentions.

In each of the three rounds of consultation, the councilors did not come to an agreement. The positions were so far apart that a solution seemed difficult. Like the Federal Council, the National Council wanted to completely abolish the imputed rental value, including for second homes.

The Council of States called for only first homes to be exempt from imputed rental value taxation. He justified this, among other things, with the resistance of many cantons to the exemption of second homes because of the fear of a large reduction in income.

At the last moment, the Council of States made a U-turn and agreed to the National Council’s concept. He also gave in to the new solution regarding the deduction of interest on debts. The SP and the Greens as well as individual members of the Center Party voted no.

Still high hurdles

However, it will probably take some time before the imputed rental value is actually abolished. The bill still has to make it through the final votes. In addition, the abolition of the imputed rental value is linked to another transaction.

In order to make up for the lost revenue for tourism cantons, the National Council is proposing a new property tax for second homes. This should come into force at the same time as the imputed rental value is abolished. The cantons would, however, be free to levy such a tax.

The new tax requires a constitutional change with a mandatory referendum and thus a yes vote from the people and classes. Last week, the Council of States did not even want to act on the corresponding proposal. On Thursday he will make a second attempt. (sda)

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