Wednesday, 24 October 2018

Are you entitled to an Arnona Discount - Municipal Rates & Property Taxes?

Hebrew: הנחות בארנונה

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Municipalities and other local authorities in Israel, give discounts for municipal taxes according to the the laws and regulations of the Ministry of Interior. The following members of the community are entitled to a discount on their municipal taxes (arnona).  Amounts vary from area to area, town to town and city to city.

  • Senior citizens (under certain conditions)
  • Disabled who are incapable of earning a living
  • The disabled
  • Disabled child up to the age of 18
  • Disabled child above the age of 18
  • An IDF Invalid
  • Business of an IDF Invalid
  • Invalid from war against the Nazis
  • Invalid from Nazis' persecutions
  • The blind
  • Discount for reduced income reasons (under certain conditions)
  • Single parent family
  • Bereaved family
  • Victim of acts of hostility
  • Prisoners of Zion
  • Family member of the Ten Martyrs
  • Righteous Gentiles
  • Income support recipient
  • Recipient of National Insurance allowance
  • Support pension
  • New immigrant*
  • IDF Soldier in mandatory service
  • Released soldier
  • National Service volunteer
  • Civil Servants
  • Students
  • The needy
  • Businesses (under certain conditions)
  • Education, religious, charity and other non profit organizations
  • Exemption for empty building
  • Exemption for new and empty building

Arnona Discounts for Olim*

Olim are entitled to a discount of between 70-90% on their Arnona payments- on up to 100 sqm - and are entitled to this discount for 12 months either in their first or in their second year of Aliyah. The discount varies from town to town and city to city.

Returning Resident/s - Toshav Hozer/Toshavim Hozrim

Returning residents who are minors, are not entitled to a discount on their arnona

Tax Exemptions for Foreign Residents

Foreign residents, owners of holiday apartments etc., are responsible for the full municipal tax levy.  Only if the apartment is unoccupied and completely empty of furniture and possessions, will you be entitled to an exemption from arnona, for a one- time, 6 month period.

Tenant Laws & Regulations

Unless you have a contract stating otherwise, tenants are obliged to pay the full arnona for the entire period of the contract.  Should a  tenant vacate the rented property and stops paying rent, the tenant is still responsible for paying the tax until the rental contract is officially canceled.

Applying for an Arnona Discount

Before submitting a request for a discount on the municipal tax, the arnona municipal account must be endorsed to the name of the individual requesting the discount, the holder of the asset. For such purpose, the apartment's rent/sale agreement must be submitted. If the apartment or property is rented, attach an additional copy of the rent agreement when submitting the request for a discount. The request must be submitted at your local municipal or regional council office

How Arnona is Calculated

Arnona is calculated based on the size of the dwelling or space: residential or commercial as levied by the local municipality or authority.  Neighborhoods are zoned: "A" being in the most affluent areas as well as "B", "C" and "D" in a sliding scale.  Each local authority decides how arnona is calculated.  Some calculate arnona based only the floor area of the apartment without external and internal walls. Others base it on roof area which includes external and internal walls. Some authorities include your share of the common spaces;  the stairwell, elevator, lobby, parking spaces.  Balconies, patios, bomb shelters, storage rooms etc.are also included, but generally at a lower rate.

Your Arnona Bill

Some municipal and local authorities combine the water and arnona bill while others have separate bills for each.   We have translated an arnona bill from Hebrew to English...

Paying Arnona

Towards the beginning of January, you will receive an annual arnona bill from your local municipal authority.  You can pay your rates and taxes in one  lump sum, two equal payments, 3 equal payments or a payment every 2 months.

You can pay your arnona on-line, at the post-office, via your local authorities automated answering service or directly with a customer service representative.  You can pay by credit card, check or cash or a  stop order via your bank.  If you pay your arnona at the bank, you will be charged a handling fee of a few shekels.

 

 

Housing Resources

 

 

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