The proposal is now expected to move forward for approval in the second and third readings in the plenary. The law aims to allow taxpayers with a small betterment levy to reach agreements with the local committee to reduce the levy without needing an expensive, decisive assessment procedure.
By Nadlan Center
The Interior Committee, chaired by MK Yaakov Asher, approved today (Wed) the “Agreed Assessment” bill for the second and third readings. The purpose of the law is to enable savings in time and money for taxpayers with relatively small betterment levies of up to NIS 90,000 who do not agree with the amount of the levy. This would be achieved by creating a mechanism that allows them to reach an agreement directly with the local authority, without needing to turn to a decisive appraiser or an appeals committee.
The Betterment Levy (Hetel Hashbacha) is a municipal tax that property owners must pay whenever a planning decision increases their property’s value. The levy is paid when the building permit is issued to exercise the rights or when the property is sold. Currently, the law states that anyone wishing to appeal the amount of the levy must submit a “counter-appraisal” through an appraiser on their behalf, without the private appraiser having the ability to engage in dialogue with the committee appraiser responsible for the original appraisal. Following that, a decisive appraiser is appointed to discuss the issue, which incurs high costs, leading to an expensive process that can take many months.
In many cases, it is not worth it for taxpayers with small amounts to enter this expensive process, as the cost exceeds the levy itself. As a result, they are forced to pay the imposed levy, even if they dispute it. On the other hand, the local authority also takes a risk by approaching the decisive appraiser, who may rule against it and create a precedent that could impact higher assessments in the future.
This is why the bill proposes that for transactions where the scope of the improvement does not exceed NIS 90,000, the property owner’s appraiser can directly contact the municipal appraiser who gave the original assessment, explaining the specific circumstances of the property that justify a reduction in the levy amount. The bill also sets short decision deadlines, with the local committee’s appraiser required to respond within 14 days regarding whether the reduction request is accepted. If the parties reach an agreement, the amended assessment will be submitted to the chief government appraiser for review, who must approve it within 21 days.
Committee Chair MK Yaakov Asher, at the end of the discussion: “I congratulate MK Avraham Bezalel for presenting this important law and thank the National Planning Administration and the Ministry of Justice for their cooperation and understanding of the necessity of this law to help the average citizen. This important social step allows the middle and lower classes to assert their rights and reduce the assessment amount by agreement, without additional and unnecessary high costs in small-scope improvement programs.”
MK Avraham Bezalel, who presented the law: “I thank MK Yaakov Asher and the committee staff for professionally and decisively advancing the bill to the committee’s approval.”
Chairwoman of the Real Estate Appraisers’ Office, Nechama Bugin, welcomed the approval of the law: “This law cannot be separated from the current period and the significant increase in the cost of living. This is an essential social law that should have been legislated long ago. It will allow ordinary citizens who have received a payment demand of up to NIS 90,000, a burden on many, to go through a direct and quick process between their appraiser and the appraiser of the local committee. This is instead of going through a long and expensive procedure in front of a decisive appraiser or an appeals committee.
“Additionally, the law will remove another barrier and free up decisive appraisers to handle large and significant projects needed in the market, which can help alleviate the housing crisis.”
