Who is the first city to approve an exemption from improvement levies in evacuation construction?

Kiryat Ono (Photo by Dr. Avishai Teicher, from the PikiWiki website)

Significant line in urban renewal in general and in evacuation of construction in particular. The Municipality of Kiryat Ono has approved a sweeping exemption from improvement levies on all construction clearance projects in its area and is the first to pass such a decision.

In doing so, the municipality implements the amendment to the Planning and Building Law approved under the Arrangements Law in the last government budget. The same amendment allows the local authority to determine what the level of the levy will be in its areas, by regions. The said plenary decision will allow for a full exemption in all parts of the city.

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The section in the Arrangements Law stipulates that the default in evacuation-construction projects will be a 25% improvement levy, and that the local authority will be able to determine different areas where it will be at a different level – 50%, 25% or 0 percent.

As stated, so far each project in Kiryat Ono has been discussed on its own merits, and now the process is significantly shortened with a full exemption from the improvement levy for all construction clearance projects. Among other things, the municipality stated that “members of the city council were presented with appraisal and economic opinions that support the granting of the exemption, while maintaining a relatively low level of density and excess financial balances for public needs.”

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It is important to emphasize that Kiryat Ono is considered one of the leading cities in Israel in terms of construction clearance. According to the final report for 2020 of the Government Authority for Urban Renewal, the city had eight construction evacuation complexes under construction that year, including 2,497 potential housing units – the most in the country. In addition, in Kiryat Ono the number of building permits In the same year.

It should be noted that the Jerusalem Municipality recently announced a similar step and a sweeping exemption, but the decision has not yet been finally approved by the City Council.

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