Appeals Committee (Tel Aviv) 27652-05-24 David Sharvit v. Hadera Real Estate Taxation Administration

22 September 2026

Judgment

The Honorable Justice H.  Kirsch, Chairman of the Committee:

1. Introduction
2. The appellants are two brothers and their spouses.  They "They asked to buy a house next to his brother" (As stated in paragraph 9 of the appellants' summaries).  For this purpose, in November 2022, they purchased rights in the land in Block 10620, Plot 289 (HaTana Street, Caesarea).  At the same time, a new two-family building with two apartments was being built on the said land.  As detailed below, the two sellers of the said property surrendered their rights to the appellants according to a building agreement that had previously been entered into between the sellers and two contracting companies.
3. A dispute arose between the appellants and the respondent, the Hadera Real Estate Taxation Administration, on the subject of purchase tax.  The main issue is the classification of the purchased property: the appellants are of the opinion that they did not purchase "Residential Apartments" Therefore, the purchase tax rate that is supposed to apply is 5%, according to Regulation 2 to the Real Estate Taxation Regulations (Appreciation and Purchase) (Purchase Tax), "1974.  On the other hand, the respondent is of the opinion that the purchased property does meet the definition of "Residential Apartment", and therefore the purchase tax brackets of a non-single apartment will apply to him accordingly Section 9(c1f) of the Real Estate Taxation Law (Appreciation and Purchase), 560"C-1963 ("The Law").

In addition, there is a dispute as to the scope of the consideration - Sale Value - The purchase tax must be imposed on it, as described below.

3. It should be noted that the hearing of the two consolidated appeals was initially held before the Appeals Committee for Real Estate Taxation in the Haifa District (headed by the Honorable Justice A.  Weinstein), until the end of the evidentiary stage in the case.  At that time, the hearing before the Appeals Committee in the Haifa District was interrupted following an incident related to one of the appellants, and according to the decision of the Honorable President of the Supreme Court, Y.  Amit, the appeals were transferred to the Tel Aviv-Jaffa District Appeals Committee for further consideration.  The parties agreed that "The discussion will continue from the point where it was transferred" (See the decision of the Honorable Judge M.  Altuvia of July 24,2025).  Subsequently, the parties' written summaries were submitted.
4. In order to understand the main dispute, we will first introduce the definition of the term "Residential Apartment", as it appeared In section 9(c) The law at the time of the purchase of the land by the appellants:

"Each of the following:

• An apartment that is used or intended to be used for residential purposes, and in an apartment whose construction has not yet been completed, except for an apartment that does not have an obligation on the part of the seller to complete the construction;
• A right in real estate sold to a purchasing group in respect of a property that is an apartment intended for residential use. "

The Ottoman Settlement [Old Version] 1916 5. In the appeals discussed, there was no dispute between the parties that the construction of the two apartments "Not yet finished" at the time of the purchase.  However, the respondent was of the opinion that in the circumstances of the case it was "Undertaking by the seller to finish the construction", and as a result, the purchased real estate will be considered "Residential Apartments" For the purpose of imposing a purchase tax.