The Timing of Betterment Tax Payment in Land Transactions

Abstract

A betterment tax is a levy on private property owners whose land have gained value due to a change in the zoning (An example of betterment tax levied is when agricultural land is changed to residential land or when the building rights to a house or building are increased). In Israel, the tax is 50% of the added value to the property. This is a one-time tax, payable when the owner sells the property or when he requests a building permit. The article focuses on the question when is the proper time for collecting the Betterment Levy.

Note: Downloadable document is in Hebrew.

Keywords: Betterment Tax, Land Transactions