The betterment tax is a mandatory payment imposed on property owners or tenants when they make improvements to a property, such as building additions or changing its designation. The tax, amounting to 50% of the value of the improvement, is collected in cases of approval of a city building plan, a variance, or non-conforming use. The purpose of the tax is to fund the expenses of local planning and development committees, and it is paid upon realization of the improvement, such as when selling an apartment or obtaining a building permit. There are cases where exemptions from the tax can be granted, for example, for public institutions or improvements in areas designated for rehabilitation. In recent years, the government has been working to reduce the tax in urban renewal projects to encourage initiatives in the field. Amendments to the planning and building law, such as Amendment 3A, establish additional exemptions and reliefs, especially in TAMA 38 projects. It is important to know that property owners can appeal the amount of the tax set and request corrections in case of errors in the assessment.