|M.Sc Student||Gil Irit|
|Subject||The Land Betterment Tax: the Law in Israel and Its Implemen|
|Department||Department of Architecture and Town Planning||Supervisor||Professor Emeritus Rachelle Alterman|
Betterment tax (levy), is imposed on the increase in land value resulting from planning decisions made by the public sector. The levy is one of several ways of transferring part of the land profit from the private to the public purse. In Israel, the tax was introduced in the 1936 Town Planning Ordinance of the British Mandate. Regular systematic collection of the tax did not, however, begin till 1981, when fundamental changes were introduced through new legislation. These changes entirely reshaped the character and structure of the laws so that it, in effect, became a new tool. Now, eight years after full enactment of the new betterment levy, this research evaluates the law and its provisions in the light of its implementation.
In this research, an empirical study was conducted to test the way the betterment levy is imposed. The views of officials in local and central government and that of land assessors were heard through personal interviews.
The first part of this research presents a theoretical framework for viewing the betterment levy as a land policy tool. The second part presents the legal issues, and the results of the empirical research pertaining to each issue. The third part consists of an evaluative assessment of the levy.
The findings show that the underlying principles of the law are clearer and more equitable than they were in the past. The levy is systematically imposed, although there are still certain problems within the law. There remains a need for making several corrections to the law for betterment tax.