Parliament stalemate on abolishing Swiss homeowner tax
Council of States dissatisfied with bill to abolish imputed rental value
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Listening: Parliament stalemate on abolishing Swiss homeowner tax
The proposed abolition of imputed rental tax on owned properties in Switzerland is in danger of failing with both parliamentary chambers finding faults with the bill.
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Ständerat ist unzufrieden mit Vorlage zur Eigenmietwert-Abschaffung
Original
A majority of both chambers dislike the tax but cannot agree on how to change the system.
During the third and final discussion of the matter on Thursday, the Senate stood by its earlier decisions. It only wants to abolish the imputed rental value for primary residences. Senators also disagree with the House of Representatives on the issue of the debt interest deduction.
The House of Representatives insists on a complete change of system. Accordingly, the imputed rental value should also be abolished for second homes. At the same time, it wants to ensure that cantons have the option of levying a property tax on second homes.
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The Senate did not even consider the proposal to introduce a property tax. It reached this decision by 26 votes to 15 with one abstention. It said an even clearer no – by 29 votes to 12 – to the abolition of the imputed rental value for second homes. Finally, it rejected a compromise proposal on the debt interest deduction by 26 votes to 13 with one abstention.
Next week, the House of Representatives will have another turn, after which the conciliation conference is expected to deal with the bill. There is no solution in sight.
The most realistic scenario is a rejection of the proposal by the conciliation conference or a no vote by one of the councils in the final vote on Friday. In both cases, the bill would be finally closed.
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