Globes, Attorney Tal Yitzhak Azriel and Attorney Adi Moskowitz, 19.03.2020

1. Don't miss any deadlines

The first rule to be followed is adherence to deadlines. The reference of the law and the case to the issue of deadlines in the field of municipal taxation is a very specific reference, to the extent that the provisions of the law itself state in some cases that failure to meet deadlines leads to loss of rights.

For example, an annual charge in a general property tax must be made within 90 days of the date the charge was received. The Local Authorities Act (Appeal for Determination of General Taxes) states that, in the absence of a due date, the charge becomes brewing and cannot be attacked during that tax year. The time available for filing for attainment is relatively long (90 days), but things are different when it comes to appealing a rejection (30 days) or an administrative petition to attack probable or lawful property tax charges, as well as an administrative petition against development charges, which are in relation to it. Standing for 45 days only.

Relatively short deadlines have also been set regarding the charges for improvement levies (45 days to file an appeal or appeal to a crucial appraiser). The short time allowed for filing a procedure leaves a very short time to prepare for the process and to review the facts and legal claims regarding it. Therefore, it is very important to begin the billing exam immediately upon receipt and not linger on it.

2. Choose the right procedure for you

Our second rule, which is related to the first navel, is choosing the right procedure. Sometimes taking the wrong procedure decides the fate of the charge irrevocably. For example, if you were billed for a levy and rushed to attack it with a decisive appraiser, then you have lost the right and opportunity to make claims about the bill (lack of improvement, exemption and the like, which lead to cancellation, and some legal claims that can only be heard by a committee). This is true even when it comes to filing a municipal property tax bill, for reasons that are not within the authority of a municipal property tax authority and an appeal committee, such as invalid retroactive billing, illegal, unreasonable or discriminatory billing. If a claim of this kind exists, and it has been raised within an attainable context, the Municipal Manager will not discuss it. Even if discussed, his decision will probably be regarded as essentially null and void as it was given without authority. Failure to take the proper proceeding for these causes in time (administrative petition) will be waived, at least for that tax year.

Things become valid in light of an existing court ruling that choosing the wrong procedure cannot cure the delay that occurred in taking the procedure that should have been taken. Sometimes an applicant must take two parallel procedures to preserve his rights and this should not be relieved.

3. Plan a tax in advance

In recent years, the awareness of property owners and property holders has grown to plan ahead. If in the past referrals to our office were mainly after the billing was completed, lately the number of inquiries arriving even before the billing was initiated, and sometimes even before the establishment of the property in the area of ​​one or another local authority.

This is a positive trend, which in some cases can save expensive, exhausting and lengthy legal proceedings. Tax planning can still be done at a preliminary stage, when choosing the local authority where the property will be set up, examining how it is billed in the municipal property to the optional local authorities. It can also be done during the construction of a property, taking into account the specific local authority rules (territories and classifications) and even after being populated, as part of negotiations with the local authority (a kind of pre-rolling procedure). Such planning may produce unusual results, especially in cases of Special assets.
Tax planning gets valid on issues of charging free parking space in a property, billing construction sites or organizing sites, and many other issues. Proper planning can also be significant in the issue of improvement levies for misuse of the property, permit or program.

4. Take full advantage of exemptions

The exemptions from a tax or surcharge are fixed in the statutory provisions and regulations governing the same payment. On the matter of property taxes, for example, exemptions (complete and partial) were laid down in the dismissal order. The municipal property tax regulations stipulate a framework of assumptions and exemptions that the local authority may adopt in its area (a discount to an empty property, new, etc.). Section 330 of the Municipalities Ordinance provides for an exemption from property taxes for improper use, and exemptions from the improvement levy are provided for in the Planning and Building Law. The law provides for almost no exemptions from development charges, although a ruling has been formulated which could lead to the cancellation of the charge.

Either way, an exemption request should not be treated laconically and easily. Sometimes the exemption route you chose at the beginning of the road is not necessarily the right exemption for you and sometimes it even infringes on your rights. For example, if your property is not in use, there is no need to automatically opt for a vacant property route (as most holders usually do with the encouragement of the local authority), since vacant property placement is given once in a property's life and for limited periods, and a limited one-time exemption is required when there is a long-term non-exemption. One-time. It is necessary to consider whether this assumption can be avoided and saved for the future, while considering the possibility of receiving a discount for a new property or an exemption for an improper use, insofar as the circumstances justifying the application based on these exemptions are met.

5. Collaborate with asset measurement

If you have been contacted by the local authority for measuring the property - cooperate and do not evade. If you prevent the local authority from inspecting the property, it may cause unnecessary trouble, transfer the burden of proof to you, and place you in unclean hands before a court of law, an appeal committee or a court. The denial of the possibility of the local authority to measure the property allows the authority to issue a "best judgment judgment", which in most cases is an augmentation that is much higher than the truth estimate. Dealing with such a mole is quite different from dealing with a mole that has been paused after measurement and truth data. However, the measurement should be prepared correctly and make sure that the measurement is done as much as possible in the presence of a representative on your behalf.

6. Do not spare factual examination

The key to the success of the case is its factual examination. Do not spare a comprehensive factual examination that takes into account not only the facts pertaining to the property itself (land and uses), but also the property tax decree, with an economic and costly examination of the rates. Sometimes the success of a property tax case involves a municipal tax assessment, an economic opinion or a comparative opinion regarding the likelihood of the municipal property tax rates. Do not spare these tests. The same is true of development levies, where the significant and essential need for a thorough examination of building permits, previous payments, construction of urban infrastructure - a test that sometimes spans 20 and even 30 years back, has arisen. Don't miss out on these tests, even if they involve the expense of experts and professionals.

7. Consider the possibility of withholding amounts in dispute

In principle, payments to the local authority should be paid at the time prescribed by law. However, the tax bill prohibits the local authority from initiating anti-tax collection proceedings in the event of a disputed debt and which has been instituted by law (attainment, appeal, petition, etc.). The local authority provided it is controversial and the allegations regarding it were raised by the assessee in due process and on time. At times, our recommendation is to delay the payment of property taxes, development charges, and even betterment charges, until the dispute is resolved in relation to it. While the disadvantage of this option is the accumulation of linkage and interest differentials on the delayed balance, its major advantages are in increasing the chance of reducing the charge and in obtaining a proper settlement with the local authority.

8. Avoid administrative collection procedures

Payment delays should be considered carefully and traditionally, only in cases where the delayed balance is disputed and proceedings have been taken. Any other situation where payment is not paid to the local authority allows the local authority to institute administrative collection procedures that may include foreclosure in bank accounts, third parties and other drastic procedures, all without the need for a court case and the signature of the local authority's collection manager. Handling a case where such proceedings have been taken is a very complex treatment, although it is sometimes impossible to stop the proceedings taken "and save" the funds that have been foreclosed.

9. Report real-time changes

One of the least common mistakes in general property taxes is the lack of timely notification of property changes. When it comes to property taxes, a notice to the local authority is usually seen as constitutive and its absence is a terror and a privilege. If you did not inform the Authority about the condition of an empty, improper use, or the reduction of property, you will not receive the relief you are entitled to anyway; And if you are late, the repair will only be done from the date of the notice.The same goes for entering, exiting the property and changing holdings and changing uses. Any such notice must be sent in real time and in advance, and be sure to be in writing with a shipping reference (and a receipt confirmation is required).

10. Be transparent and careful

Finally, be transparent, both with yourself, with your professionals and with your local authority. Do not ignore charges, do not prepare them under the rug or drawer, as when they come out dealing with them is much harder.