Indeed, an old Israeli law states that an Israeli owner has the right to build their first house of 140m2 for free. And this, without paying that famous tax which can amount on average between 30 to 40% of the price of the land.
It should be noted that the price of Etel Hashba’ha costs approximately 4500 Shekels per m².
In this regard, residents of Herzliya filed a complaint this Monday with the municipality of Tel Aviv. Specifically, to cancel the Improvement Levy Tax (Etel Hashba’ha).
Enforcing this old Israeli law.
It must be said that the TLV Municipality calculated, on a general basis, a total of 33 million shekels. And this, without considering that it was a group of private owners. The municipality should have calculated the taxes on a case-by-case basis. Consequently, each owner should have received a tax calculation based on their share of the land and their tax rate.
The appeals committee therefore decided to cancel the assessment of 33 million NIS since the calculation did not correspond to reality.
This decision does not cancel the assessment of the local committee, which has already appealed before being rejected, the municipality of Herzliya stated.
The local committee will need to issue a reassessment for the realization through a building permit concerning the extent of the realization. Furthermore, it must take into account the scope of the rights requested in the permit. Also, without the landowners being liable to the municipality.
Property Tax Law.
Remember, check your rights carefully before paying any tax. Clearly, you could benefit from a reduction or a reform allowing you to fully recover the amount due.
