Municipal Taxation Lawyers – Ways of Assisting Businesses and Individuals in Arnona Payments and Local Taxes
In this article, an expert lawyer from our firm explains about municipal taxation. Apart from taxes paid to the Israel Tax Authority, there are also other types of taxation, which are paid to the various municipalities and councils in Israel. The best-known tax is Arnona (municipal property tax), but there are additional levies and various types of municipal taxation. It is important to deeply understand these taxes, both for residential and business purposes, and to carefully examine eligibility for discounts and lower rates.
Our law firm in Jerusalem and Tel Aviv specializes in real estate law and municipal taxation.Our office’s lawyers are knowledgeable in taxation and have extensive experience in dealing with the various authorities concerning municipal taxation. We assist clients in submitting applications for discounts or exemptions from arnona and municipal levies, and also represent clients before the various courts in objection and appeal proceedings related to these issues.
What is Municipal Taxation?
The local government in Israel consists of over 250 local municipalities (as of 2021), including city councils, local councils, and regional councils. Each municipality is authorized to collect various tax payments in its territory. It seems that everyone is familiar with the arnona tax, which is a tax that is intended to finance the activities and services of the local municipality. However, in addition to the arnona tax, there is a wide range of other taxes, fees, and levies set by the municipality. This includes development and enhancement levies, business licensing fees, and more.
Most of a municipality’s powers to collect payments from residents and businesses operating in its territory are fixed by law. To that extent, they are limited and are the same for all municipalities. However, each municipality has a different municipal taxation policy and may sometimes establish additional powers through local bylaws.
In What Areas Do Municipal Taxation Lawyers Provide Assistance?
The role of a lawyer specializing in municipal taxation and arnona is to become deeply proficient not only in the various types of municipal taxation, but also in the policy of each municipality as it is set out in orders, by-laws, and decisions made by the municipalities and courts. This is especially important because mistakes are often made in which municipalities charge fees that are different from and higher than the fees that residents or business owners in the area of the municipality are actually required to pay by law.
A prominent example of this occurs in arnona payments for businesses. Our firm often encounters cases in which a certain municipality charges businesses a higher rate than the rate that another municipality charges businesses of the same type. This is due to various reasons, the main one of which is the different calculation methods used by each and every municipality for the purpose of determining the arnona rate for businesses. A municipal taxation lawyer can conduct an in-depth examination of various municipal tax payments and, if they exceed the required rate, serve as an attorney in an objection or appeal against them.
Additional Issues that are Addressed by Municipal Taxation Lawyers
As explained above, there are many types of taxes, levies, and fees that local municipalities charge. Many cases of determining development and enhancement levies or business licensing fees (according to the Licensing of Businesses Law) involve complex legal proceedings that require knowledge of municipal taxation law, as well as tender law. Therefore, in these cases, it is advisable to seek the assistance of an attorney who is knowledgeable in taxation.
The same applies to arnona debts and, especially, arnona debts owed by businesses. Companies often reach a state of insolvency (especially in these days of the corona crisis). In these and other cases, the local authority may ask courts to order payment directly from the company owners (through a legal tool called “lifting the corporate veil”). In this case, too, it is advisable to enlist the help of a municipal taxation attorney.
Contact a Lawyer Who Specializes in Municipal Taxation and Arnona
Above we have explained the main cases in which the assistance of a municipal taxation lawyer is needed. If you have further questions on the subject, please feel free to contact us. You can contact us using the phone numbers or e-mail address listed below. Our law firm specializes in municipal taxation and arnona, and regularly deals with matters relating to local municipality levies, business licensing, arnona tax deductions for businesses, exemptions from arnona, and more.