After mediation between the companies’ class action lawsuit and the Tel Aviv municipality, it was decided that the municipality will return 60 million shekels of property tax payments that it collected beyond what is acceptable for the office parking lots of the companies located in its territory. This was published this morning (Thursday) in the newspaper The Marker.
In March 2015, the municipality of Tel Aviv, which already collects a high property tax, suddenly decided to further increase the rate for non-residential parking spaces. In accordance with the decision, property tax rates for office parking lots increased by more than NIS 20, to a price of NIS 65.
In its decision, the municipality claimed that it did not need to obtain permission from the Ministry of the Interior, and set up the Tel Aviv Chamber of Commerce and a number of companies that were shocked by the exorbitant price that was suddenly imposed for no reason. Together with the Chamber of Commerce, companies such as Check Point, Group Y. Shitir, Mekorot company and more.
The District Court in Tel Aviv actually sided with the municipality and ruled that there was no fault in its conduct. The companies did not give up and appealed to the Supreme Court, where Judge Eliyahu Bakr recommended mediation between the parties. The mediation, conducted in front of retired judge Yitzhak Inbar, ended as mentioned now when it was agreed upon to refund about NIS 60 million to the companies.
The payments will be returned to all the owners of the office parking lots who paid property taxes to the Tel Aviv Municipality from March 2015 until the end of December 2021. In addition, the municipality was charged with paying legal expenses and half of the fees to the three law firms that handled the case. Their salary is a total of NIS 8.6 million.
Finally, after collecting NIS 125 million for those parking lots after the rate increase, the Tel Aviv Municipality committed that within 90 days the amount of the payment would be updated to the original price.
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