Israel’s Unfair Property Tax

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Depending where you live in Israel, you may pay more or less property tax for the exact same size apartment. This is due not only to tax rates which differ from town to town, but also because some town councils charge taxes for actual living space, while others also charge for the space taken up by walls, lobbies, stairs and storerooms.

To stop the unfair system, Interior Minister Aryeh Deri and Finance Minister Moshe Kachlon agreed to set up a committee that will establish a unified housing tax policy for the whole county. But to Deri’s dismay and anger, Kachlon reneged at the last moment when he learned that the committee was to be headed by someone from Deri’s ministry.

Due to this petty consideration, property owners will have to wait a little longer for the unfair system to cease.

David Steger – Matzav.com Israel

2 COMMENTS

  1. True, different cities charge for different aspects of owners’ “property” (apartment only, relative share of building, parking) however, they all charge different rates per square meter. That rate is based on the quality of municipal services and real-estate values that neighborhood is considered to be, which may or may not be the actual quality of services – especially in the frum neighborhoods. That’s where you run into un-fairness.

  2. in any case, they knew what they were getting themselves into when they bought their homes. The unfair thing would be to rewrite the rules now, raises some people’s rates and lowering others’.

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