The Supreme Court ruled that the impact of TAMA 38 must be taken into account when calculating the betterment levy arising from the detailed plan applicable to Quarters 3 and 4 in Tel Aviv and the Rehavia neighborhood in Jerusalem. This ruling effectively reduced the vast majority of the betterment levy already collected from thousands of citizens.
Estimates point to a loss of approximately NIS 50 billion for the Tel Aviv and Jerusalem municipalities, as they will be unable to collect betterment levies associated with TAMA 38.
במסגרת הליך הדיון הנוסף (דנ"מ 67731-10-25 In the context of the additional hearing proceeding (Additional Hearing on Civil Matter 67731-10-25 *Tel Aviv Local Planning and Building Committee v. Adiv Shmuel Levitan*, published in Nevo on July 5, 2026), the Honorable Justice Yael Willner ruled that an additional hearing regarding a Supreme Court judgment is a rare and exceptional procedure, and a substantive examination of the case leads to the conclusion that there is no justification for holding an additional hearing in this matter.
The following is an excerpt from the judgment—
It is worth adding that I found no "glaring, fundamental, and decisive error" in the judgment—the type that might justify holding a further hearing (see and compare: the *Deri* case, at p. 613); far from it. In my view, the Court thoroughly and clearly analyzed the complex issue placed before it and reached the conclusion necessitated by this Court’s relevant precedents.
But has the Tel Aviv Municipality stopped sending payment demands to residents selling apartments in the aforementioned areas? The answer is no!
The municipality modified its method of calculating the betterment levy so that, on the surface, the payment demand would appear consistent with the rulings in the *Levitan* case. Although the municipality reduced the amount of the levy demanded, it still attempts to collect hundreds of thousands of shekels per apartment upon its sale. Consequently, the municipality is failing to comply with the new legal precedent established by the Supreme Court, and the legal dragging-out of the matter continues.
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