The Interior Ministry has announced plans to revise the criteria for granting arnona (property tax) discounts, a move that could impact a large number of households across Israel. Under the proposed changes, individuals seeking these discounts will be required to submit their average income over the course of an entire year, rather than just the past three months as is currently required.
This shift is likely to negatively affect Israel’s more vulnerable communities, particularly married yeshiva students. The new rules fail to account for the distinct nature of their income, which often comes from irregular sources such as family support or temporary, seasonal jobs. “Many of the families rely on irregular sources of income, such as help from their parents or temporary jobs,” a kollel (yeshiva for married men) student shared with Arutz Sheva – Israel National News. “Annual calculations may create a warped picture of their true financial situation, and revoke their crucial arnona discounts.”
In response to the backlash, the Interior Ministry explained, “In 2017, an amendment was made to the policies for arnona discount, under which [municipalities] will transition from calculating average monthly income for eligibility examinations for arnona discounts to the average income from the past 12 months of the previous fiscal year in the sector requesting discounts, so that it properly reflects an employee’s income throughout the year, more than calculating the average income of three months.”
The Ministry continued, “In order to allow authorities time to organize to implement this instruction, a temporary order was made, which was extended throughout the years. Now, in light of the passage of time, it is proposed to fully implement the amendment, such that the income will be examined according to the average income from the 12 months of the previous fiscal year, so as to ensure the true eligibility according to the income test. This order was published for public comment until January 26, 2025, and following the examination of notes by the public, we will bring the matter for the Minister’s signature.”
{Matzav.com Israel}