Development contributions and added value levies for property owners

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Cantons and municipalities confront property owners with a variety of levies, in particular for the development of properties and in the case of added values from zoning changes. Development contributions and value-added charges can only be levied on property owners who derive a special benefit from them. The use of the revenue is defined for specific purposes.

Development contributions (road contributions, water connection contributions, sewerage contributions)

Development contributions are charges levied in particular by the communes for the technical and traffic-related development of a plot of land by roads or for the water and sewage supply of a plot of land to be developed. Development contributions may only be levied on those property owners who derive a special benefit from the development. The revenues may in turn only be used for the respective infrastructure projects.

Road contributions

A plot of land may not be built on until it has been made accessible. The construction and maintenance of public roads and access routes are the responsibility of the community. Cantonal roads are therefore financed exclusively from the general state budget. On the other hand, landowners are regularly required to contribute to the construction of communal roads if a special economic advantage in the form of an increase in value arises for their parcels as a result of the construction, extension or comprehensive renewal of a road. For this purpose, the land value before and after the construction of the road project is compared.

With the road contributions, the project costs, insofar as they are not taken over by the general state treasury, are divided according to the size of the parcel among the directly adjoining owners or also among the owners benefiting beyond that (perimeter).

Water connection and sewerage contributions

The water supply and the disposal of waste water are also a task of the community. Landowners are required to pay development contributions for the construction, expansion and renewal of water supply and sewerage systems (wastewater disposal). Here, too, a special benefit is required for a landowner to be liable to pay a charge. The development charge is not only due when the plot concerned is built on, but already when the community provides the corresponding infrastructure.

The water connection and sewerage contributions are calculated according to a variety of criteria such as plot size, building volume, building insurance value, load values, flow rates or combinations thereof.

Value-added levies; material expropriation

Zone changes can result in a plot of land acquiring a higher value without the owner having contributed anything to it. The added value consists of the fact that the development possibilities of a parcel of land are legally expanded. The Federal Spatial Planning Act requires a levy of at least 20 per cent on such planning added values. The value-added levy is obligatory in the case of zoning (newly developed building area), while in the case of rezoning (changed building area) or upzoning (better utilisation in existing zone) the cantons or (as in Basel-Landschaft) the municipalities decide on the levying of the value-added levy. Depending on the legal regulation, the levy is only charged when the plot is built on or already when it is sold. The amount of the levy varies greatly. The levy rates are usually between 20 and 40%.

If the owner suffers a considerable disadvantage as a result of a planning measure, in particular in the case of rezoning or dezoning (building ban), the state must pay compensation for material expropriation under certain conditions.

Knowledge

The costs of creating the infrastructure of land as well as the increase in value due to spatial planning measures can lead to one-time charges to the community in a considerable amount for the affected land owners. Such charges must be included in the project costs of new buildings and, if necessary, renovations in good time. If the compulsory levies are too high in comparison to the special benefit or added value achieved, an appeal must be lodged.

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