The assessor’s role in the improvement levy
- Buying an apartment in Israel
- Improvement Levy
According to section 4 of the Third Addition, the task of determining the rate of the improvement levy will be determined by a real estate appraiser, who will usually be appointed by the local committee on the date of realization, and in our case on the date of sale of the apartment.
Alternatively, the local committee can perform appraisals Shortly after the plan is approved. Section 4 of the Third Schedule determines that:
“(1) The improvement shall be determined by a real estate appraiser shortly after the approval of the plan, permitting the excessive use or granting the relief; however, the local committee may postpone the preparation of the improvement assessment due to approval of a plan until the realization of the rights in the improvement …
The appraiser will assess the value of the property on the day the plan begins.
Section 4 (7) of the Third Schedule: “The assessment shall be made on the date of commencement of the plan or on the date of approval of the relief or overuse, as the case may be, taking into account the increase in the value of the land and as if sold in a free market.
” The valuation will be done according to a universal test, which is based on an elaborate market assumption in which a reasonable buyer is willing to pay an amount that reflects the objective value of the real estate at that point in time, usually according to the ‘market value’ method.
The market value can be defined in a number of ways: “result of the good and efficient use of a specific apartment”, or comparison of the apartment according to real estate transactions made in other apartments while making the necessary adjustments. In any case, the appraiser of course strives to reach the objective value of the apartment at the exact time.