Uri blocks the second-home tax in the cantonal parliament

Uri does not intend to introduce a canton-wide property tax on second homes following the abolition of the imputed rental value. Instead, each municipality is to be able to decide for itself whether it needs such a tax. Andermatt, in particular, is thus taking centre stage in the tax debate.

The flexibility stems from Bern, but Uri does not wish to make full use of it at a central level. With the change to the system of property ownership taxation coming into effect on 1 January 2029, the cantons will be able to introduce a special property tax on second homes that are predominantly owner-occupied. The Uri Cantonal Government is now moving towards a municipal solution, citing the low revenue relative to the administrative burden.

The financial situation is, however, tighter than the political debate would suggest. The total tax shortfall resulting from the abolition of the imputed rental value is estimated at around 3.2 million Swiss francs for the canton and municipalities combined, with the canton and the municipalities each bearing half the cost. According to the calculations, owner-occupied second homes account for only around 0.6 million Swiss francs of this, which corresponds to approximately 0.5 per cent of cantonal tax revenue.

Andermatt bears the brunt
It is precisely this distribution that explains the change of course. Second homes are heavily concentrated in Andermatt. According to the cantonal calculations, the loss of municipal tax revenue from second homes there amounts to around 180,000 Swiss francs, accounting for 61 per cent of the municipality’s total loss in this regard. For most other municipalities, the shortfalls appear to be much more manageable. A canton-wide solution would therefore entail rolling out a costly collection procedure for a comparatively small return.

Instead, Uri intends to amend the constitution so that municipalities can introduce a property tax themselves if necessary. However, key parameters such as the taxable property, tax rate and assessment procedure are to be standardised in the cantonal tax law. This would give municipalities room for manoeuvre without creating 20 different models.

The clock is already ticking
The federal government has set 1 January 2029 as the date for the abolition of the imputed rental value and the introduction of a new tax on second homes, following the referendum on 28 September 2025. Uri must amend its legislation by then. As early as March 2026, the Cantonal Government presented the first key parameters for the 2027 tax bill. At the Municipal Finance Conference on 2 July 2026, the Department of Finance announced that it expected to launch the consultation process on the tax law revision in autumn 2026.

Additional pressure is being created by the parallel general revaluation of property, which is also due to take effect on 1 January 2029. This is expected to generate additional annual revenue from wealth tax of around 1.4 million Swiss francs for the canton and municipalities combined, thereby offsetting part of the shortfall. It remains to be seen how costly the technical implementation of a new property tax will be. As only a few cantons are likely to introduce a comparable model using the same software, the government anticipates higher IT and enforcement costs. It is precisely this issue of costs that could ultimately prove almost more important for local authorities than the new tax measure itself.