| << Prev || עברית || Français || Русский || Next >> |
Part Five - The Economic Plan
Municipal Building Reform (3/3)
Redefining the roles of the state and the local authority
Following the proposed reforms, the functions of the local authority and of the state with regard to construction will change and be significantly reduced. The restrictions on construction will be determined at the neighborhood level,[26] making redundant most of the functions of the local authority when it comes to planning the construction. The most important responsibility that will remain in the hands of the local authority is the responsibility for municipal infrastructures, and it will have to adapt them to the changing needs of the residents and business owners in its territory.
Adjustment of municipal infrastructure to new projects
Often, large enterprises will require adjustment of municipal infrastructure to meet their needs. The local authority will have to make all necessary adjustments for the residents and businesses in its territory. In fact, adapting the infrastructure to the needs of municipal taxpayers is one of the few jobs that will be left to the local authorities after the reform.
The cost of the necessary adjustments will be placed on the developer, since he will benefit them. This can be done by collecting the payment directly or by means of a closed fund, in which developers will transfer money in accordance with the load their projects add to the municipal infrastructure - funds that will be dedicated solely to financing future upgrading of the infrastructure when necessary. Of course, enterprising local authorities, who understand the benefits of attracting projects that will increase municipal tax receipts and enable the improvement of municipal infrastructure, will want to attract developers. The best incentive for an developer to invest in a project in a local authority and not in another local authority that is similar to it will be the efficient and quick planning and execution of the required adjustments. In any case, funds collected from projects due to the need to adapt a particular infrastructure will only be permitted to be used for the planning and performance of the required adjustment and not for other purposes.
The Authority will be responsible for public construction and infrastructure within its boundaries
The local authority will continue to bear responsibility for the planning, construction and maintenance of public buildings and infrastructure in its area - roads and sidewalks, street lighting, sewage and water lines, public gardening and the like. The building plans of the local authority will be published publicly on the Internet because of the public's right to know.
As a local authority responsible for urban infrastructure, it will be required to prevent construction projects from damaging the infrastructure. The municipality will do so by examining the details published on the Internet before obtaining the building permit and by monitoring the connection to the infrastructures and the burden on them. In the event that construction causes or is expected to cause damage to infrastructure, the local authority will petition the court.
Since almost all of the issues discussed today in building committees will no longer be determined by the local authority, these committees will not be needed. The municipal engineering department will deal almost exclusively with the planning of public infrastructure, the impact of new projects on them, and supervision of the process of requesting a building permit.
The state will be responsible for public construction and infrastructure outside the cities
The State will continue to bear responsibility for the planning, construction and maintenance of infrastructures and public buildings outside the jurisdiction of the local authorities - intercity roads, nature reserves, airports, and the like.
Taxation, levies and fees in real estate
The taxation of real estate and construction will not be different from taxation in all other sectors of the economy, as detailed in the chapter "Changing the Taxation System" in this section. The improvement tax will be canceled because the municipality will not be able to influence construction plans after the cancellation of the City Building Plan, and there will be no land betterment tax because there will be a uniform and flat tax on all income, as detailed in the section "Changing the Taxation Method." The State of Israel will become a duty-free state.[27] And therefore, there will be no custom duties on the import of building materials, including cement.
Fees will continue to be collected to provide public services, such as land registration. We will strive to transform these public service providers into closed systems that will be funded solely from fees without, transferring funds to the state and without receiving funding from the state budget. It will be possible in this way to ensure that the fees are used to cover actual expenses rather than becoming hidden taxation by alternative means.
The expected simplification of the tax structure and the cancellation of the levies will reduce the need to hire lawyers and other experts on real estate laws or tax planning.
Simple and low taxation and reducing the need to hire tax experts will also help lower real estate prices.
[26] A few basic limitations on public peace will continue to be determined at the state level. The clearest example is the list of permitted building standards.
[27] The tariffs will be gradually abolished, as detailed in the section "Industry and Trade in Israel" in this section.
| << Prev || עברית || Français || Русский || Next >> |