AGVE_2005_27•Minimum tax on properties under § 89 StG is constitutional
AGVE_2005_27Administrative Court / Chamber 2Feb 24, 2005Confirmed
Extracted by Omnilex
E. Immobilien AG challenged the minimum tax levied on its properties. The Verwaltungsgericht held that § 89 StG has a sufficient legal basis and is constitutional. It further confirmed that the tax amounts to 1.5 per mille of the book value without surcharges, that residential buildings of a real estate company are not operating properties, and that the WEG exception applies only to non-profit housing entities, not to isolated parcels held by other organizations.
§ 89 StG; minimum tax on real estate, constitutional basis, tariff and scope of the WEG exception. The provision constitutes a sufficient statutory basis and withstands constitutional review (consid. 1, 5). The tax is determined at 1.5‰ of the book value of the properties, without additional surcharges (consid. 4.2). Residential buildings held by a real estate company are not operating properties (consid. 3). The WEG exception is limited to bearers and organizations of non-profit housing construction; it does not extend, on the basis of individual parcels alone, to other organizations (consid. 4.1).
2005 Kantonale Steuern 107 schaftliche Normalbedarf überschritten würde. In diesem Punkt erweist sich somit der Einspracheentscheid als zutreffend. Die vom Steuerrekursgericht vorgenommene reformatio in peius ist rückgängig zu machen. 27 Kapitalabfindung für wiederkehrende Leistungen (§ 44 StG; Art. 11 Abs. 2 StHG).
Extracted by Omnilex
Whether § 89 StG provides a sufficient legal basis and is constitutional for a minimum tax on properties.
§ 89 StG provides a sufficient statutory basis and is compatible with the constitution.
The court held that the provision adequately authorizes the levy and does not breach constitutional limits.
How the minimum tax under § 89 StG is calculated.
The tax is 1.5 per mille of the book value of the properties, without surcharges.
The court interpreted the statutory scheme as fixing the rate directly and excluding additional mark-ups.
Whether residential buildings owned by a real estate company qualify as operating properties.
Residential buildings held by a real estate company are not operating properties.
The court distinguished such assets from business-use property for purposes of the minimum tax regime.
Whether the WEG exception applies to individual parcels owned by organizations other than non-profit housing bodies.
The WEG exception applies only to entities and organizations of non-profit housing construction, not to individual parcels held by other organizations.
The exception was construed narrowly and tied to the purpose and status of the housing provider.
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