Basel-Landschaft voters face competing land-value levy proposals

Voters in Switzerland’s Basel-Landschaft canton will decide on September 27 between an initiative and a counterproposal governing charges on increases in land value, SRF reports.

The dispute concerns planning gains, which arise when a municipality or canton increases the value of a property through a planning decision. This can happen when industrial land becomes residential land or when higher or denser construction is permitted. The owner benefits from the increase without having invested in it, allowing the federal government and cantons to claim part of the gain for public purposes.

What the initiative proposes

The initiative, launched by the Homeowners Association of Basel-Landschaft, seeks to keep the charges as low as possible. It would retain a 20 percent levy when land is newly designated for construction and set a maximum levy of 30 percent when its permitted use changes.

The association says the proposal would provide legal certainty and prevent an additional burden on property owners. Christoph Buser, its president, said owners already pay property gains tax and that higher charges could make investment and housing construction more difficult.

What the counterproposal includes

The counterproposal from the cantonal parliament would also allow levies when construction is made denser or higher on a property. Revenue from changes in land use and denser or higher construction would be divided between municipalities and the canton, with 90 percent going to municipalities and 10 percent to the canton.

The cantonal government and parliament support the counterproposal. They say it better meets federal requirements and covers all forms of planning gains.

Why the proposals are disputed

The revision was debated in the cantonal parliament for years, and the original compromise was changed several times. Left-wing parties ultimately rejected both the initiative and the counterproposal, arguing that both would restrict municipalities too heavily.

Social Democratic parliamentarian Urs Kaufmann said the current system gives municipalities the discretion they need. He also rejected the Homeowners Association’s argument that the levy would make housing more expensive, saying it would instead slightly reduce the profit owners make.

The political split is unusual. The Swiss People’s Party, the FDP and the Homeowners Association support the initiative. The FDP, the Centre party, the cantonal government and a narrow majority of the cantonal parliament support the counterproposal. The Social Democrats, Greens, Green Liberals and Evangelical People’s Party reject both measures.