As expected: Municipality leaders strongly oppose the cancellation of development levies

A strongly worded letter of opposition was sent on September 5 to Interior Minister Moshe Arbel and Justice Minister Yariv Levin, signed by over 110 municipality leaders.

The local authorities are firmly opposed to the cancellation of development levies without creating a better alternative financing mechanism to fund all public needs currently financed by these levies. Until then, the local authorities demand an immediate halt to the initiative, fearing it will severely impair their ability to provide adequate services to residents.

The leaders warn of the severe economic consequences of the move, which is being promoted by the Ministry of Justice, the Planning Administration, and the National Planning Headquarters, without the participation of local authorities. The letter claims that the reform, coming at a time when security expenses are rising, and revenues are significantly shrinking due to the war, could fail to meet its intended goal and may instead cause serious harm to the public. 

According to the municipality leaders, development levies are essential for local authorities to finance planning needs, public buildings, infrastructure, and urban space development. Without these levies, local authorities will not be able to construct public buildings within their jurisdiction, including schools, welfare centers, cultural institutions, sports facilities, religious buildings, and more. Moreover, the ability to develop supportive and related infrastructure for construction will be severely compromised.