Shlomo Gilboa is suing the Haifa municipality for illegally collecting property taxes

Filed a claim against the collection department of the Haifa municipality, demanding to return an amount that was confiscated due to an increase in property tax payment.

A few days ago (on 2021/5/13), a hearing was held in the Magistrate's Court regarding a lawsuit, filed by Shlomo and Miri Gilboa, against the collection department of the Haifa municipality. Shlomo Gilboa previously served as a member of the Haifa City Council.

According to the lawsuit, the plaintiffs live in an apartment under the jurisdiction of the Haifa Municipality, on Yaffe Nof Street, which also includes a warehouse. From 2013, the property tax payment was significantly increased, by approximately NIS 2000 per year, without justification. After repeated appeals to the collection department, the garnishment of the payment was canceled and then, on June 17, 2020, contrary to the agreement, an enforcement order arrived for the canceled garnishment and the total of all payments reached - NIS 13,571, when Shlomo Gilboa's account was debited with this amount. In a conversation he had with the collection department, Gilboa was told that the foreclosure was executed by mistake.

Gilboa demanded a refund of the amount charged, and the collection department refused his credit on the grounds that the amount went to the municipality's collection company 'Milgam'. In the lawsuit, Gilboa claims that this is not the case according to the attached appendix, and Gilboa also states that all his requests to the Haifa municipality were not answered.

"Beyond the public and administrative aspect of the municipality's mistakes, the municipality's conduct constitutes a blatant breach of obligation and has caused me heavy financial damages and certainly also a waste of time and heavy emotional distress," Gilboa writes in the lawsuit and cites several examples. His request to receive a line of credit from the bank was denied, the payment, amounting to NIS 13,571, lowered his balance and led to a situation where checks may bounce. His credit applications were rejected and he had to take a loan from an outside source.

Gilboa also points out that over the course of five months, his repeated requests, written and verbal, were not answered and therefore he had to go to court. Gilboa is asking the Haifa municipality for an immediate refund of the foreclosed amount, plus interest and linkage, a refund of the advance payment and a refund of the payment for the aggrieved meeting and the fee paid. The amount charged for the refund is NIS 21,791.

In response, the Municipality of Haifa submitted an 85-page defense that includes appendices for property tax payment for the property from 2010 to 2020, in which it claims that everything alleged in the lawsuit is denied, with the exception of the allegations that the defendant expressly acknowledges, and the amount claimed by the plaintiffs is denied.

In the statement of defense, the Municipality of Haifa writes that "the plaintiffs, who chose to ignore all the payment demands that were sent to their address on the property, are now complaining that the municipality imposed a lien on the bank account they own and claim various damages that have not been proven, even apparently, and not for nothing was attached not a single document in support in their claims. It is not clear to the defendant on what basis the plaintiff claims for the return of the sums that were paid on account of the settled debt when it is not disputed that this is a true debt that the plaintiffs must pay. The Haifa Municipality requested an order to dismiss the claim and will also file an objection to the request and a restraining order."

At the hearing held on 13/5/21, Shlomo Gilboa was asked to present to the court the recorded conversations with the collection department in order to continue holding discussions on the issue.

Shlomo Gilboa:

The municipality behaves in real bullying and contrary to all the provisions of the law and unfairly towards its citizens.
For years I paid the property tax that was required of me (even though it has nothing to do with the actual size of the apartment (117 meters in the tabu versus 164 meters in property tax payment calculations). But when I found out that they were charging my warehouse as part of a "fine apartment", I refused the charge and entered into negotiations with them, following which I agreed to pay 3000 shekels for the account, to prove goodwill. In return, they undertook in writing that they would cancel all proceedings and foreclosures. To my astonishment, contrary to the agreement, they reached into my pocket and withdrew the entire amount from my bank account. This is really broad daylight robbery bordering on crimes. The problem is that there are Many people do not understand the regulations and their rights and are the victims of draconian and illegal collection procedures. I hope that following this lawsuit, the municipality will come to its senses and return funds it illegally collected from the citizens. I urge them not to be afraid to confront the municipality.

The Haifa Municipality responded:

"This is a lawsuit that is being settled in the small claims court, and therefore the municipality is prevented from providing any details regarding the proceeding that is, as mentioned, pending.
Meanwhile, it should be noted that the municipality submitted a detailed statement of defense rejecting all of the plaintiff's claims and the matter will be clarified as stated before the court."