Planning and Building Law – Changes to Betterment Levy Appeal Procedures
A recent amendment to the Planning and Building Law came into effect, introducing changes to the appeal process for betterment levies. The amendment establishes a faster and more efficient dispute resolution mechanism for property-owners who wish to appeal the betterment levy assessment received from the Local Planning and Building Committee, particularly in cases where the levy does not exceed ILS 90,000.
What is a betterment levy?
A betterment levy is a tax imposed on property-owners after a building plan is approved that results in an increase in the value of the property or the granting of relief or nonconforming use. The levy is imposed when the rights materialize i.e., when a building permit is issued, when a relief or nonconforming use is approved or when the property is sold. The levy is calculated according to a real estate appraiser’s appraisal, based on the property’s characteristics and the approved modifications, after which, the local committee issues the betterment levy assessment to the property-owner.
What has been the practice up until now?
Until now, in cases where property-owners disputed the very imposition of the betterment levy, they could file an appeal with the District Appeals Committee for Planning, Building, Compensation, and Betterment Levies. In cases in which the dispute concerned the amount of the levy, property-owners could request the appointment of a deciding appraiser to determine its correct value. In both instances, property-owners were required to submit their appeals within 45 days of receiving the Betterment Levy demand.
What has changed?
Amendment 157 to the Planning and Building law introduces a new and speedier dispute resolution track with regard to Betterment Levies. Following are the new procedures:
A property-owner who accepts the imposition of the levy but disputes the levy amount, and the levy does not exceed ILS 90,000, may file an application to the Local Committee within 45 days for re-examination of the levy amount, attaching an appraisal by a real estate appraiser on his/her behalf.
An appraiser on behalf of the local committee will be required to reach a decision on the application within 14 days of the date from which the application was forwarded to him.
If the committee’s appraiser agrees to reduce the levy, the committee will issue a new levy demand to the property-owner, who will be given 21 days to provide notice as to whether or not he/she agrees with the levy assessment.
If the committee’s appraiser fails to issue a decision within the defined timeframe, or decides to reject the application, or accepts the application and issues a lower levy, but the property-owner disagrees with the appraiser’s decision, then the property-owner will be able to follow the usual procedure of filing an appeal or an application for the appointment of a deciding appraiser within 30 days of receiving the amended levy assessment.
If the property-owner agrees with the amended levy assessment, the local committee will forward the agreed levy to the chief government appraiser, who must advise within 21 days if he does not approve the agreed levy assessment. If the government appraiser fails to respond to the agreed levy assessment within that timeframe, the agreed levy assessment will be deemed approved.
This legislative amendment leads to increased transparency, since all agreed betterment levy assessments will be published on the local committee’s website, thus making this information readily accessible to the public.
In short, the purpose of Amendment 157 to the Planning and Building Law is to streamline procedures and increase the transparency of appeal proceedings regarding betterment levies.
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Maya Zisser is a partner in the Real Estate Department at Barnea Jaffa Lande.