Tel Aviv metropolitan area mayors propose metro tax
24 mayors of the Tel Aviv metropolitan area (Gush Dan) have proposed a “special tax to be paid by all residents of the region who will be served by the metro and who will ultimately benefit from the transport project.”
The tax is a counter-proposal to the government’s current plans to fund certain aspects of the metro project. The local municipalities concerned claim that the amount of compensation they would be required to pay landowners for the implementation of the project would lead some of them to financial collapse. They raised their concerns several weeks ago in a letter to Prime Minister Naftali Bennett and the Ministers of Finance, Transport and Home Affairs.
Meanwhile, metro legislation is moving forward without a clause specifying how it will be funded.
In their letter, the 24 mayors estimate that the 150 kilometers of underground railway lines along the metro will result in huge compensation claims under section 197 of the Town Planning and Construction Act, which deals with compensation for reduced property value.
Posted by Globes, Israel business news – en.globes.co.il – September 19, 2021
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