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| (No. 45) |
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DEVELOPMENT TOWNS AND DEVELOPMENT ZONES LAW, 5748-1988* |
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Purpose of
Law. |
1. The purpose of this Law is to encourage the settlement, development and social and economic advancement of the development towns and zones and of their residents. |
| Definitions. |
2. In this Law --
- "the Ministers'' means the Minister of Finance and the Minister of Economics and Planning;
- "Ministers Committee" means the Ministers Committee for the advancement of the development towns and zones, as stated in section 4;
- "resident of a development town" means a person whose only permanent place of residence during the last twelve months prior to receiving to any benefit under this Law, was a development town as defined in section;
- "border settlement" means a settlement that the Ministers together with the Minister of Defence have declared to be a border settlement for the purposes of this Law;
- "Income Tax regulations" - Income Tax Regulations according to section 11 of the Income Tax Ordinance(1)
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| Town |
3.
- (a) For the purposes of this Law, with the exception of section 7, a development town is a municipal parameter, local council, regional council or a part thereof, that the Ministers Committee has declared to be a development town for the purpose of this Law or for any one of its sections, in consideration of:
- (1) its distance from the population concentrations in the center of the country and the policy of encouraging population circulation;
- (2) its economic and social solidity and the level of services therein;
- (3) the security situation in the zone;
- (b) The Ministers Committee shall classify the development towns according to two groups "a" and "b" for the purposes of each section of this Law;
- (c) The Ministers Committee may cancel or change the classification of a development town.
- (d)
- (1) A locality shall not be declared to be a development town unless the locality is included:
- (a) On the eve of the passage of this Law, in either a new settlement zone or in a new development zone which has been defined as such in the Income Tax Regulations or;
- (b) In an order determined by the Ministers in consideration of the conditions specified in paragraph (a).
- (2) The effective date of the declaration regarding a particular locality, with the exception of a locality specified in the Minister's Order and with the exception of a border settlement, shall be on the effective date of the regulations excluding the locality from the applicability of Income Tax Regulations, or on the expiry date of the Income Tax regulations relating to it;
- (3) A locality declared to be a development town under this Law, shall not be included in an zone defined under the Income Tax Regulations; this provision shall not apply to a border settlement.
- (e) The Ministers Committee may, in consideration of the conditions prescribed in subsection (a), determine that rights under this Law, or any one of its sections, shall also be conferred upon Local Authorities and Israeli citizens who are residents therein, if they are located in zones as defined in section 3A of the Income Tax Ordinance [New Version].
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Ministers
Committee |
4.
- (a) The following shall be the composition of the Ministers Committee for the advancement of the development towns and zones;
- (1) The Minister of Finance - Chairman;
- (2) The Minister of Economics and Planning;
- (3) The Minister of Energy and Infrastructure;
- (4) The Minister of Defence;
- (5) The Minister of Building and Housing;
- (6) The Minister of Health;
- (7) The Minister of Education and Culture;
- (8) The Minister of Agriculture;
- (9) The Minister of Labor and Welfare;
- (10) The Minister of the Interior;
- (11) The Minister of Industry and Trade;
- (b) The Government is entitled to alter the composition of the Ministers
Committee; notification of the change shall be submitted to the Knesset
and shall be published in Reshumot.
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Grants to
Local
Authorities |
5.
- (a) At the beginning of each budgetary year the Government shall transfer to the Local Authority of a development town, a financial grant for an amount equalling the sum of the grant for undesignated balancing granted to it by the Ministry of the Interior in the 1986 fiscal year, with the addition of half of that sum for a development town classified "A" and a quarter thereof for a development town classified "B".
- (b) The Minister of Finance, together with the Minister of the Interior, may alter the amount of the grant for the Local Authority, in consideration of the amount budgeted for that purpose in the State Budget.
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Reduction
of General
Rate |
6. A resident of a development town shall not pay the general rate for a building serving for residential purposes in the development town, of an amount exceeding two thirds of the amount determined by the Local Authority for the payment of the general rate, as stated; the State shall compensate the Local Authority in accordance with the rules determined by the Ministers.
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Investment
Encouragement |
7. In furtherance of the promotion and advancement of the development towns and the welfare of their residents, the Investment Center established under the Encouragement of Capital Investments Law, 5719-1959(2) (hereinafter - the Law); shall give preference to investment programs in the development towns; these investments shall be given grants, concessions and reductions according to the Law, having regard for the portions of the Areas specified therein;
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Exemption
from
Employers Tax |
8. An employer in a development town who pays work income as
defined in the Employers' Tax Law, 5735-1975(3) for the work
of a resident of the development town, shall be exempt from employers's
tax, as defined in the said Law, with respect to that income. |
Change of
residence
grant |
9.
- (a) A family changing its sole place of permanent residence from a locality that is not a development town to a development town, shall receive the following loans from the State, all of which shall become grants at the end of three years from the time of the change of residence, provided that the particular development town did not cease being its sole place of permanent residence during that period:
- (1) A loan exceeding twice the amount of the transfer incentive to a development town given by way of the Ministry for Labor and Welfare for the 1987 fiscal year;
- (2) During the first year of its living in the locality-a loan for monthly participation in payments for electricity, water and telephone for the amounts and according to the conditions determined by the Ministers;
- (3) A family as stated having received a loan for the purchase of an apartment, shall for the first two years of its dwelling in a development town, receive a participatory loan for assistance in repayment of the loan received for the purchase of the apartment, at the amount and under the conditions determined by the Ministers together with the Minister for Building and Housing.
- (b) Benefits under this Law shall also be applicable for an individual over the age of 25.
- (c) The Ministers shall determine the conditions for the repayment of loans, applicable in the case that such loans do not become grants as stated in the opening section of subsection (a).
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Residential
Loans |
10. A family or individual above the age of 18, who are the residents of a development town, or who have transferred their permanent place of residence to a development town, shall be entitled to receive a loan for the purpose of purchasing an apartment in the development town ; the Ministers together with the Building and Housing Minister shall determine in regulations the conditions for eligibility under this section and the sum of the loan and the conditions for its repayment, provided that the sum of the loan is at least 50% higher than the sum of residential loans given in a place that is not a development town.
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Income Tax
concessions |
11. A resident of a development town liable for income tax at a rate not exceeding 30% of his chargeable income, shall be exempt from the payment of one half of the sum of the tax for which he is liable.
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Grant to
families of
Olim |
12.
- (a) A family of Olim resident in a development town shall,
for each of the first two years of its residency therein, receive
a participatory grant for expenses incurred in rental, general rate,
electricity and water, for an amount and under such conditions as
determined by the Ministers; a family of Olim shall he entitled
to benefits under this section or under section 9, according to its
choice, all without derogating from its rights under this Law.
- (a) For the purposes of this section -
- "Oleh'' means a person prior to the expiry of three
years from the date of his entry into Israel, to whom one
of the following applies:
- (1) He is in possession of an Oleh's certification
or a certificate of an Oleh, under the Law of
Return, 5710-1950(4);
- (2) He is entitled to a certificate as stated and is in possession of one of the following;
- (a) an authorization or permit for permanent residence under the Entry into Israel Law(5), and fulfils the conditions determined by the Ministers;
- "family of Olim" means an Oleh together
with his partner who is an Oleh or his child who
is an Oleh.
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Free
Education in
Kindergartens |
13.
- (a) A resident of a development town shall not pay for education in a kindergarten as defined in the Compulsory Education Law, 5709-1949(6), provided in the development town.
- (b) The State shall compensate the institutions managing the kindergartens in the development towns for the free education provided therein, as stated in subsection (a)
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Free education
in day-homes |
14.
- (a) A resident of a development town shall not pay for his children who are in day-homes in a development town.
- (b) The State shall compensate the institutions managing the day-homes in the development towns for the education provided therein as stated in subsection (a), to the extent that they do not receive compensation from any other source.
- (c) For the purposes of this Law, "day-homes" - home shall have the meaning ascribed to it in the Homes (Supervision) Law, 5725-1965(7), intended as a home for children until the age of 4, during the day.
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Fee education
in schools |
15. The education in the primary and secondary schools m the development towns shall be free.
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Higher
Education |
16. Within the framework of each annual budgetary law the Minister of Finance shall fix a budget for residents of the development towns, providing scholarships covering the entire academic fee for residents studying in Institutions of Higher Education as well as in Institutions for Religious Education the majority of whose students have served or are serving in the Israel Defence Force, all in accordance with the rules and conditions as determined by the Ministers together with the Minister of Education and Culture.
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Technical
Education |
Within the framework of each annual budgetary law, the Minister of Finance shall fix a budget providing scholarships for residents of development towns studying for technological professions in schools and institutions of Higher Learning, as well as for granting assistance in laboratories, for the purchase of equipment and supplementary classes in the areas of technological education in the development towns, all in accordance with the rules determined by the Ministers together with the Minister of Education and Culture.
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Informal
Education |
Within the framework of each annual budgetary law, the Minister of Finance
shall fix a budget for the provision of financial assistance for extracurricular
groups for the children and youth of the development towns, including
extracurricular groups for sport, culture, skilled work and music, to
be provided in centers for culture, sport and youth, and through the agency
of the Youth Department of the
Ministry of Education and Culture.
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Professional
Training |
19. The department for professional training in the Ministry of Labor and Welfare, shall give preference in the allocation of resources for the professional training of the residents of the development towns.
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Amendment
of Severance
Pay Law |
20. In section 8 of the Severance Pay Law, 5723-1963(8) in the second paragraph, the words "the Labor Affairs Committee of the Knesset" shall be followed by the words "or from a settlement that is not a development town within the meaning of the Development Towns and Areas Law, 5748-1988, to a development town for the purposes of section 9 of the said Law, provided that he has proved that he is a resident as defined in the said Law of the development town".
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Benefits
according to
classified |
21. Any determination or benefit under this Law, may be for different amounts or under different conditions regarding a development town "A'' and a development town "B".
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Saving of
laws |
22. The provisions of this Law shall not derograte from any right or benefit given to a development town, to an enterprise therein or to its residents under any other law.
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Implementation
and
regulations |
23. The Ministers together with each Minister within the area of his authority are charged with the implementation of this Law and they may make regulations in all and matters relating to its implementation.
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| Commencement |
24. Sections 12 - 18 shall come into force for the 5749-1989 school year.
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YITZCHAK SHAMIR
Prime Minister |
GAD YAAKOBI
Econimics and Planning Minister |
CHAIM HERZOG
President of State |
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MOSHE NISSIM
Minister of Finance |
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* Passed by the Knesset on the 29 Sivan, 5748 (14 June, 1988) and published
in Sefer Ha-Chukkim No. 1253 of the 8 Tammuz 5748 (23 June, 1988)
p.98; the Bill and an Explanatory Note were published in Hatza'ot
Chok No. 1871, 5748, p.128 ;
(1) Dinei Medinat Yisrael N.V. 6 p. 120, 5748 p.
20 L.S.I. New Version.
(2) Sefer Ha-Chukkim 5719, p. 234, L.S.I. vol.
13, p.258; 5747, p. 142; L.S.I.
(3) Sefer Ha-Chukkim 5735, p. 118; L.S.I. vol.
29, p.259; 5740, p.164; L.S.I, vol. 34 p. 70.
(4) Sefer Ha-Chukkim 5710, p. 159; L.S.I. Vol.
2, p. 114; 5730, p. 164; L.S.I. vol. 24, p. 28.
(5) Sefer Ha-Chukkim 5712, p. 354; L.S.I. Vol.
6, p. 159.; 5745, p. 213; L.S.I. vol. 39, p. 242.
(6) Sefer Ha-Chukkim 5717, p. 87; L.S.I. vol. 26,
p. 103.
(7) Sefer Ha-Chukkim 5725, p. 48; L.S.I. vol. 19,
p. 44; 5737, p. 26; L.S.I. vol. 31, p. 29.
(8) Sefer Ha-Chukkim 5723, p. 136; L.S.I. vol.
17, p. 163; 5737, p. 26; L.S.I. vol. , p. 31. |