Planning and Building Law – Changes to Betterment Levy Appeal Procedures

A betterment levy is a tax imposed on property owners when an approved building plan increases the value of a property, or when relief or nonconforming use is granted. The levy is imposed when the rights are realized, i.e., when a building permit is issued, relief or nonconforming use is approved, or the property is sold. The levy is calculated based on a real estate appraiser’s assessment of the property’s characteristics and the approved modifications. The local committee then issues a betterment levy assessment to the property owner.

Until now, property owners disputing the imposition of a betterment levy could file an appeal with the District Appeals Committee for Planning, Building, Compensation, and Betterment Levies. If the dispute concerned the amount of the levy, property owners could request the appointment of a deciding appraiser to determine the correct amount. In both cases, property owners were required to submit their appeals within 45 days of receiving the betterment levy demand.

A property owner who accepts the imposition of a levy of no more than ILS 90,000 but disputes its amount may apply to the local committee within 45 days for a re-examination. The application must include an appraisal prepared by a real estate appraiser on the owner’s behalf.

An appraiser acting on behalf of the local committee must decide on the application within 14 days of receiving it.

If the committee’s appraiser agrees to reduce the levy, the committee will issue a new levy demand to the property owner, who will have 21 days to give notice of whether they agree with the revised assessment.

If the committee’s appraiser fails to issue a decision within the specified timeframe, rejects the application, or reduces the levy but the property owner disagrees with the decision, the owner may follow the usual procedure by filing an appeal or requesting the appointment of a deciding appraiser within 30 days of receiving the amended levy assessment.

If the property owner agrees with the amended assessment, the local committee will forward the agreed levy to the chief government appraiser, who must give notice within 21 days if they do not approve it. If the government appraiser does not respond within that timeframe, the agreed assessment will be deemed approved.

The amendment also increases transparency: all agreed betterment levy assessments will be published on the local committee’s website, making the information readily accessible to the public.