The Israeli Supreme Court has ruled that residents of the HaTikva neighborhood in Tel Aviv, designated as a rehabilitation area, are entitled to an exemption from the betterment tax when selling their homes, not just when extending their existing properties. This decision, which contradicts the opinion of the government's legal advisor, means that several families who have already sold their homes will receive refunds from the Tel Aviv municipality. The main argument is that if a building right is granted tax-free, the buyer will not pay for this right, and thus the seller does not profit from this value, eliminating the need for the betterment tax. Property owners in the area view this as an important and fair social message.
