Basel City Reduces Double Taxation Rate by Half
In a heated debate, politicians in the Canton are discussing the potential reduction of the transfer tax on real estate transactions. The motion, proposed by Bruno Loetscher (Mitte), aims to reduce the tax from 3% to 1.5%.
Supporters of the motion, including Luca Urgese (FDP) and the 'Yes' camp consisting of Mitte-EVP, FDP, LDP, and SVP, argue that the transfer tax is arbitrary and burdensome, particularly for young families. Urgese labels the tax as "unsocial," while Loetscher describes the proposed reduction as "restoring tax fairness."
However, opponents of the motion, such as Daniel Gmür (SP) and the 'No' camp consisting of SP, Greens, and Basta, view the proposed reduction as a "tax cut for the wealthy." Finance Director Tanja Soland (SP) emphasizes the potential budgetary implications, stating that halving the annual revenue of around 50 million francs would create a budget gap of 25 million francs.
The function of the transfer tax is a point of contention between these two groups. Patrizia Bernasconi (Basta) supports the tax for its role in maintaining stability in the real estate market by preventing rapid and speculative changes in ownership. She believes that the tax ensures stability by guarding against such fluctuations.
On the other hand, Loetscher (Mitte) argues that the land acquisition tax has taken over the function of the transfer tax, making the latter redundant. He maintains that the transfer tax serves no real purpose.
Despite government resistance, the parliament has decided to refer the motion to reduce the transfer tax to committee. The motion is still under debate, with both sides presenting arguments about its impact on the budget and the real estate market. The identity of the politician who will handle the motion in the commission is yet to be determined.
The transfer tax is levied upon the acquisition of real estate in the canton. The debate on its reduction is a significant development in the Canton's taxation policies, with potential implications for property owners, young families, and the real estate market.
