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Arnona (Property Tax) Lawyer – How to save on Arnona payments?

Michael Decker
Michael Decker

There are a variety of issues that require the assistance of a lawyer who specializes in Arnona tax. Israeli property tax laws are quite complex. Those who do not have knowledge and familiarity with Arnona orders and the requirements they impose, may find themselves paying higher fees than they actually have to pay. Requests for reductions in Arnona payments for individuals and businesses, municipal taxation matters and the handling of applications for Arnona exemptions all require expertise in the field. In this article, a property tax lawyer from our firm will expand on these issues and explain how you can save on your Arnona tax payments.

Lawyers from our law offices in Jerusalem and Tel Aviv specialize in real estate and property tax law. The firm’s lawyers are experienced in dealing with various matters relating to Arnona tax payments and municipal taxation before the local authorities and the various legal courts. Our lawyers have knowledge and expertise when it comes to submitting applications for Arnona discounts and exemptions before local authorities, as well as representation in appeal proceedings and objection committees.

What is Arnona and what is it for?

Property tax lawyerWe are all familiar with the term “Arnona”. Most of us even pay Arnona tax on a regular basis. However, not everyone is aware of the meaning of the term, and what the Arnona tax payments are actually used for.

The State of Israel is divided into various local and regional municipalities and councils. Each local authority is responsible for a wide range of areas within its region. These areas include management and maintenance of infrastructure, waste removal, firefighters, hosting cultural events and organizing education systems. All these, and more, require financial support from the residents of each local authority, and it is for this purpose that municipal taxation is imposed.

The main form of taxation that each local authority imposes on its region is called Arnona. However, there are additional payments and levies that are under the jurisdiction of the local authority. In Israel, the laws dealing with the subject (including the Municipalities Ordinance and the Local Councils Ordinance) give local authorities the ability to determine the Arnona tax payment in their region. The tax is imposed on those who are in possession of the property, whether they own the property or just rent it. In general, Arnona tax is levied on all types of property, whether it is a residential property, a property used for managing a business or a property intended for any other purpose.

Determining Arnona payments

For many years, Arnona payments in Israel were determined according to different legislations, meaning that it was implemented differently by the various authorities. In 1993, the State Economy Arrangements Law was enacted. This law contributed to the creation of standardization within the issue of Arnona tax. The law deals, among other things, with the criteria for Arnona tax rates. The law establishes four main criteria for determining the Arnona payment for those who own a real estate property: the area unit, the type of property, what the property is used for and the location of the property.

The law restricts local authorities in terms of the calculation of Arnona tax rates. The government, and not the authorities themselves, sets minimum and maximum rates for each type of property. It is important to emphasize that the authorities still have different powers, such as the ability to determine and change the classification of assets. Thus, for example, the local authority can determine that a certain part of the property is used for business purposes and a set a higher Arnona tax rate for it.

One of the main issues dealt with by lawyers from our firm, who specialize in property tax matters, is representation in objection proceedings before the authorities, regarding the classification of assets. These proceedings are conducted before the various local authorities. Sometimes, when seeking to appeal the decision of the local authority, one is required to go to court and file administrative petitions or administrative appeals. In some cases, it is even possible to file civil claims for financial compensation, for example in a case where damage is caused as a result of the local authority’s decision.

Other issues that a property tax lawyer may assist in

In addition to the objection proceedings regarding the classification of a property, a property tax lawyer also deals with requests for Arnona tax reductions, Arnona tax discounts, and Arnona tax exemptions for properties owned by individuals, businesses, associations, etc. The law provides for a wide range of exemptions and discounts in Arnona tax rates for individuals and businesses. A property tax lawyer advises on the issue and assists in handling and submitting applications for exemptions or reductions. You can find further information concerning this issue on our website, in an article we have published that is dedicated to the issue of Arnona tax reductions. For business owners who need a tax deduction, we recommend reading this article.

Contact a lawyer who specializes in issues of property tax

For questions and clarifications of any legal matter regarding the handling of Arnona exemption applications for an empty property or a property that is not suitable for use, you can contact us and we will be happy to assist you. At our Law offices, you will find lawyers with years of expertise in property tax, and other Arnona-related issues. You can contact us using the phone numbers or email address listed below.

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