Congestion Tax Law for the Reduction of Traffic Congestion in the Gush Dan Area, 5782-2021

In this Law –

"vehicle owner" – the owner registered in the vehicle licence at the time of the journey in respect of which a tax liability arose, unless that person has proved that the vehicle was stolen from them;

"liability notice" – as its meaning under section 33;

"Implementation Committee" – as its meaning under section 20;

"the Appointed Company" – as its meaning under section 24;

"liable person" – a vehicle owner who is liable for the payment of tax;

"charging ring" – as its meaning under section 4;

"business day" – any day of the week, excluding each of the following: Friday, a day of rest as its meaning in section 18a(a) of the Law and Administration Ordinance, 5708-1948, and the eve of such a day of rest, the intermediate days of a festival (Chol HaMoed), and a day of rest established by legislation;

"road" – as defined in the Traffic Ordinance [New Version], including the road shoulder;

"congestion focus" – as its meaning in section 6;

"Director of the Tax Authority" – the Director as defined in the Income Tax Ordinance [New Version];

"tax" – congestion tax as its meaning under this Law;

"collection system" – as its meaning in section 29;

"private operator" – as its meaning in section 25(b);

"maximum daily tax liability amount" – as its meaning in section 16;

"motorised vehicle" – as defined in the Traffic Ordinance [New Version], which is in motion;

"security vehicle" – as defined in the Traffic Ordinance [New Version], which is used exclusively in operational or security activity, even when it is not emitting flashing light from a special lamp or sounding an alarm signal from a siren, which was registered before the date of tax liability;

"congestion hours" – the range of journey hours as set out in Column A of the Second Schedule;

"gate" – a passage fitted with a camera by means of which the crossing of a vehicle at the boundary of a charging ring is recorded, and every other installation erected for the purpose of positioning and operating it, as well as every ancillary connection thereto;

"Minister of Transport" – the Minister of Transport and Road Safety;

"the Ministers" – the Minister of Finance and the Minister of Transport.

The purpose of this Law is to reduce traffic congestion on roads, in order to reduce the high economic cost and the harm to quality of life and to environmental quality associated therewith, by imposing a dedicated tax for entry into and exit from the Gush Dan area by vehicle during congestion hours on business days.

The charging rings shall be three ring-shaped zones in the Gush Dan area, the boundaries of which are marked in the First Schedule, in accordance with their degree of proximity to the centre of the city of Tel Aviv-Jaffa: an inner charging ring, a middle charging ring and an outer charging ring.

"Central Bureau of Statistics notice" – the notice of the Central Bureau of Statistics defining the metropolitan areas in Israel following the population census of 2008, published on the website of the Bureau;

"number of workplaces" – in accordance with the data of the Central Bureau of Statistics notice, as updated from time to time.

For the purpose of tax liability in accordance with the provisions of this Law, gates shall be placed along the routes of the boundaries of the charging rings to record the passage of vehicles crossing the boundaries of the charging rings.

The Minister of Finance, after consulting the Minister of Transport and with the approval of the Finance Committee of the Knesset, shall determine, by Order, a list of groups of gates whose crossing, within a given period of time that shall be determined, during congestion hours, shall not be subject to tax or shall be subject to tax only in respect of the crossing of a portion of them.

In this Chapter –

"average travel speed" – the average travel speed of vehicles during congestion hours, as shall be measured from 1 June in a given year to 31 May of the following year, in accordance with the provisions under section 14;

"change in average travel speed" – the change that has occurred in the average travel speed in the test year as compared with the average travel speed in the base year;

"test year" – the year that ended on 31 May preceding the date of publication of the speed indices as provided in section 14;

"base year" – the year that ended on 31 May preceding the determining date as its meaning in section 56(b).

The tax amount shall be as set out in Column D of the Second Schedule, in accordance with the congestion hours as set out in Column A alongside it, the direction of travel as set out in Column B alongside it, and the charging ring whose boundary was crossed as set out in Column C alongside it.

Tax amounts shall change, in accordance with the provisions of section 12, at the rates set out below in accordance with the change in average travel speed specified alongside them:

"index" – the average wage as its meaning in section 1 of the National Insurance Law [Consolidated Version], 5755-1995;

"new index" – the index most recently published before the date of update;

"base index" – the index most recently published before the determining date as its meaning in section 56(b).

The tax liability applying to a liable person under the provisions of this Law shall apply on a cumulative basis, however the maximum daily tax liability amount shall not exceed the total of the tax liability amounts applying to a liable person in respect of the following two journeys:

Notwithstanding the provisions of section 11, a vehicle of a type listed in the Third Schedule shall be subject to tax, under the provisions of this Law, in accordance with what is prescribed alongside it in the Schedule.