Buchillon, Vaud, Switzerland (TSR, Fre) - The commune of Buchillon has long had one of the lowest tax rates in Canton Vaud but that is about to change radically: the village will soon double its communal tax rate to 126%. The news could be good for taxpayers, rather than bad, in theory.

The new rate is a reaction by the commune to the canton’s cost-sharing plan that penalizes communes with low tax rates by charging them more for cantonal services, on the grounds that they are richer. As a result of the higher cantonal costs the commune has less money to invest; by raising its tax rates it hopes to lower what the canton charges it. Buchillon’s taxpayers, some of whom are indeed wealthy, must now hope not to be caught in the middle.

Brief explanation, 3-tier Swiss tax system and overview of personal tax liabilities in Switzerland (Ed. note: the article by Renato Bloch was written in December 2005 and is still fairly accurate, but it stops short of reviewing communal taxes, which for residents of many communes, is the highest of the three).

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