Application for a reduction in Arnona tax – Explanation by attorney specializing in property tax
Applications for Arnona tax reduction are becoming a lot more frequent these days. The damage of the Corona crisis has caused manyindividuals and businesses to reach a state of legitimate need for a reduction in property taxes. The application is handled by local authorities, and involves dealing with a significant amount of bureaucracy. In this article, an expert lawyer from our firm, who has extensive experience in handling Arnona tax reduction applications, will explain what is important to know when it comes to applying for an Arnona discount.
Our Law firm is located in Jerusalem and Tel Aviv, specializes in real estate and property tax law. Our firm has extensive and proven experience in dealing with local authorities regarding various requests and applications in matters of Arnona tax. This includes, but is not limited to, applications for Arnona reductions and exemptions, as well as representation before the various courts in objection proceedings and appeals concerning Arnona.
Arnona – a general explanation
Arnona is a tax that each local authority imposes on its area, for the purpose of financing its activities and services. We are all used to receiving the periodic Arnona payment notices from the local authority where we live or operate our businesses. Quite a few of us have also received warnings for late Arnona payments, and sometimes even faced collection proceedings before the authority or in court. Given our present situation, as a result of the Corona crisis, which has had severe economic consequences, the number of private individuals and business owners who have difficulty meeting their Arnona tax payments has significantly increased.
When is it possible to reduce Arnona tax charges for individuals and families with low incomes?
Current Arnona tax payments can be high, and in many cases citizens and business owners face difficulty when it comes to meeting them. What can be done to reduce the burden that these payments impose? The government has enacted regulations defining those eligible and the conditions of eligibility for an Arnona discount, both for individuals and businesses. It is important to emphasize that it is only possible to benefit from one discount. For those with eligibility for 2 or more discounts, the highest possible discount will be given.
Some conditions of eligibility change from time to time (usually once a year). An example of this is the condition of eligibility that is calculated in accordance with the Income Test. The government defines parameters for the eligibility of an Arnona discount for private individuals, based on their level of income and the number of persons in the household. As of 2021, this discount varies, its rates ranging from up to 20% to 80% when there are 1-6 people living in the house, and up to 30% to 90% when it comes to 7 people or more.
For example: a person whose monthly income is between NIS 3,745 and NIS 5,300 may be entitled to a discount of up to 20%. A family of 5 people, where their monthly income is less than NIS 7,122 per month, may be entitled to a discount of up to 80%. It should be noted that the monthly income refers to the gross income that comes from work or other sources (benefits, work grants, etc.).
How can eligibility for an Arnona tax discount be applied in practice?
The application is processed by the local authority’s Arnona tax collection department. An application form must be filled out, where the various incomes from work and other sources are specified. Specific documents, determined by each authority, must be attached to the application. These are usually pay slips and documents that clearly state the income received from other sources, if any. Often, citizens only find out about their eligibility in retrospect. In these cases, an application for the retroactive reduction of Arnona tax will be required. Here, too, the conditions for submitting a retroactive application vary from authority to authority.
If one is interested in appealing the authority’s decision on a request for a reduction in Arnona tax, they can appeal to the relevant body in the local authority. Sometimes it will be possible to object the decision of the authority, by appealing to the district commissioner in which the authority is located. In appropriate cases, it is also possible to submit an application to the Court of Administrative Matters and appeal the decision. A lawyer experienced in handling Arnona tax reduction applications will be able to assist in handling the filing of the application as well as in objecting to and appealing it, if necessary.
Additional cases of possible Arnona tax reductions
There is a long list of eligibilities for exemptions or discounted Arnona tax charges. In some cases, these are obligatory discounts, such as a reduction in Arnona tax for the disabled, senior citizens, soldiers and civil servants. In addition, there are discounts in special cases, such as a discount for tenants evicted due to construction, who have received an alternative apartment or a discount and are exempt from paying tax for vacant properties or properties unfit for use. Similarly, there are Arnona discounts for non-profit organizations and institutions, as well as an Arnona discount for businesses.
Contact a lawyer who specializes in handling applications for an Arnona tax reduction
In this article, we have detailed the main cases in which an application for a reduction in Arnona tax can be submitted. There are other eligibilities in addition to the cases mentioned. For further questions and to clarify your eligibility for an Arnona tax reduction, or for assistance with applications to declare eligibility, you can contact us. An expert lawyer who is experienced in handling applications for Arnona payment reductions from our Law office will be happy to assist you. You can contact us using the phone numbers or e-mail address listed below.