Almost to the day exactly five years ago, the Grand Council increased the imputed rental value by a wafer-thin majority after a real speech battle. This in order to meet the legal requirements again. The imputed rental value must be at least 60 percent of the market rental value. In Aargau, it had previously fallen below 55 percent in places. The increase brought high additional costs for many homeowners and caused a lot of resentment.
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At that time, Walter Richner from Benzenschwil bundled this with a committee «imputed rental value no» and an online petition against the increase. The committee garnered over 5000 votes. The Grand Council did not overturn its decision. In addition to the demand for the abolition of imputed rental value (which can only be decided at the federal level), there was still a call for a hardship regulation. Less well-off owners should benefit from this (for example retirees with lower incomes). In the canton of Zurich there is a regulation that is intended to prevent someone from having to part with the property due to a high imputed rental value.
Abolition debate changed initial situation
It was possible to bring this idea to the Grand Council. In spring 2017, this commissioned the government with a postulate to examine the matter and report on possible variants and their effects. To a request from Richner, Finance Director Markus Dieth replied in September 2017 that examining the matter was not easy because many constellations and possible technical implementations had to be assessed. An existing solution like the one in Zurich cannot be used without further ado, because the starting point in the canton of Zurich is different with the imputed rental value level of 70 percent.
“Fundamental change in home ownership taxation”
In addition, in his opinion, the political discussion at federal level creates a completely new situation: For the first time, there is a common basis between the previous counterparties to abolish the imputed rental value and the associated tax deductions. The possibility is intact, wrote Dieth at the time, “that there will actually be a fundamental change in home ownership taxation”. Against this background, the government council considers it useful to monitor the political progress at federal level in order not to carry out legislative revisions in the wrong direction.
Nothing works in Bern, the committee is getting impatient
However, the optimistic mood of 2017 has long since faded, and the new start to abolish imputed rental value is no longer making good progress in Bern. Therefore, but also with a view to the latest ruling by the administrative court, according to which Aargau has to revise its imputed rental value taxation upwards, Richner, as chairman of the committee, is now urgently demanding that the canton finally submit a hardship regulation.
Department sees little more leeway
Roland Hofer, spokesman for the finance department, replied: “Due to the court ruling and the constitutional and federal requirements, it is not possible to introduce a regulation that would reduce the imputed rental value to below 60 percent of the market rent.” In other words, this means that the canton now sees little scope for introducing hardship cases.
Government owed an answer since 2016
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