What Is Arnona
This short article answers the question what is arnona and introduces you to our arnona article series.
So, What Is Arnona
Arnona is a type of property tax that residents of local authorities are required to pay. The collected arnona is used to pay for buildings within the local authority (or municipality) and a variety of other public services. Arnona must be paid, regardless of one’s opinion of the quality of services provided. Arnona is applied to every building within a local authority. This applies to residential properties, business properties, and more.
Arnona entails two types of payments, first, a tax that the central government mandates, and second, the rate that the local government (or municipality) decides. Arnona is calculated according to a number of criteria, including the location of the property within the local authority’s boundaries, how the property is classified, how the property is used, and the size of the property in square meters. The payment can vary from year to year as the rates are often slightly adjusted.
Regarding the location of the property, areas of a local authority that are wealthier or more centrally located (like close to downtown) will often be charged slightly higher rates than other zones within a local authority. We previously mentioned that the property’s classification also determines part of the cost. Some classifications include: residential areas, offices, hotels, banks, and houses of prayer, among others. These classifications can also, in some cases, entitle the owner to a discount, for example, a house of prayer (church, synagogue, etc.). One important classification distinguishes between residential and non-residential areas in particular. Finally, the area of the property can be calculated in one of four ways (depending on how the particular authority chooses to conduct the calculation): net area, gross area, internal net area (excluding, for example, balconies), and attached gross area (including, for example, parking, storage, and more).
This Series of Articles
Our law offices of Cohen, Decker, Pex & Brosh specialize in several legal fields, including real estate and property law, which arnona issues often fall under. All issues related to arnona fall under the authority of the Ministry of Interior and then the local authority in which a property stands. A few of our partners have significant experience working with numerous clients and serving on regional councils to advise on arnona issues. This series of articles about arnona addresses numerous issues that clients often ask about.
If you have further questions about what is arnona or anything else related to property taxes or property law in Israel, please contact us. We conveniently have offices in Jerusalem and Petach Tikvah (close to Tel Aviv), and we would be happy to discuss any issues on the phone as well.
Advocate Michael Decker specializes in arnona and property law, and he would be happy to discuss any arnona issue with you.
: 03-3724722, 055-9781688