What is Arnona (municipal tax/rental)?
Municipal property tax (also known as Rental, herein: Arnona) is basically a tax paid to the municipality to fund the variety of public services essential for residents’ proper routine, which are provided by the municipality.
Such public services include, among others: Routine sanitary and cleaning services; street lighting; maintenance of road and sidewalk, public gardens, and public buildings; cultural and educational institutions; and a variety of other services and infrastructure for the wellbeing of the city's residents.
Arnona is a mandatory municipal tax for a varied array of services and does not constitute a specific payment for any particular service. Therefore, its payment will not depend on being provided any specific service.
Note that noise hazards, uncompleted environmental development, construction works, and so forth, will not exempt any resident from paying their due Arnona.
What constitutes the duty to pay Arnona?
General Arnona is a tax legally charged by all municipalities. General Arnona is levied on a person that is a "holder/occupant" of a taxed property. A "holder/occupant" is defined as: any person actually holding or occupying a property, who is either the owner or tenant, or who occupies the property in any other way.
A person staying at a hotel or a pension is not considered a "holder/occupant" for the purposes of Arnona payments. At an empty property, the person with the closest affiliation to the property will be assumed to be the owner of the property.
The annual Omnibus Economic Arrangements Law sets for the approved rate of increase in Arnona rates each year, as well as the maximum and minimum Arnona rates for municipalities statewide. The municipal council, relying on Ministry of Interior regulations, decides each year on the levying of the general Arnona and sets its rates according to zone, type of property, and its usage. The Arnona charge is annual (from January to December) and is set by the type of property, its use, and its area.
Payment of Arnona by all city residents at the set deadlines guarantees the local municipality proper functioning and the regular funding of services to residents in all spheres of the municipality's responsibility.