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Sellers Shocked: Municipality's Improvement Levy Demands 80% of Apartment Sale Price

A couple who sold their modest apartment in Beer Sheva for 845,000 NIS was shocked by an improvement levy of 667,186 NIS imposed by the municipality, equating to 80% of the sale price. This levy is due to an urban renewal project approved in 2022, allowing the construction of a new building. The couple has appealed, arguing the levy is unjustified as the construction rights stem from the TAMAM 38 law, which exempts such taxes. Additionally, they did not financially benefit from the project, having transferred their construction rights to a developer in exchange for a new dwelling. The Beer Sheva municipality stated it will respond during the appeal process.