Finance C'tee postpones meeting on property tax change

ByGLOBES
January 7, 2014 13:39

Changes in property tax (arnona) calculations in some municipalities may have led to spikes in some locations.




Isreli currency.

Money cash Shekels currency 521. (photo credit:Reuters)

Knesset Finance Committee Chairman MK Nissan Slomiansky (Bayit Yehudi) on Tuesday postponed a hearing that would change the way property taxes (arnona) were calculated in some municipalities, changes that may have led to spikes in some locales.

Slomiansky cited ongoing disagreements with Finance Minister Yair Lapid and Interior Minister Gideon Sa'ar on the right path forward.

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"Until now, means meetings on this topic have taken place and since an formula acceptable to all sides has not yet been accepted, I decided to postpone the hearing," Slomianksy said.

According to Globes, the legislative amendment in question would have allowed those municipalities unable to up property tax on the basis of balconies, parking spaces, and common areas in apartment buildings to do so, provided they recieved a waiver. Municipalities that want to lower their property taxes could also receive permission to remove those items from taxation.

The change would be the first update to arnona calculation since 1985. Following a 2013 law, financially sound municipalities are already able to raise property tax by .3% in exchange for loaning cash to the government.

The Israel Manufacturer's Association campaigned against high arnona rates, arguing that businesses could not afford the additional costs.

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