The Subject of Arnona Tax

There are five broad categories that are included under the general term “property”. First to define our key term “property,” we turn to the legal definition according to Israeli law, which is “buildings and lands that are under the domain of the municipality, populated or empty, public or private, excluding the street”. All the following topics considered “property” are subject to the arnona tax.

1. Property excluding the street: The local authority or municipality does not charge arnona for a street. Sidewalks or walk ways are included in the category of “street” as area that is excluded from the arnona tax.
2. Buildings: A building is any structure (or any part of a structure) that is under the domain of the municipality, including an area of land whose use is connected to the structure as a yard or garden or any other use connected to the building. When a building is being constructed, until it is defined as “the end of building,” it is not subject to the arnona tax. There are a number of other exceptions, but in general, any building is the subject of arnona tax by the municipality.
3. Agricultural land: Agricultural land is land that is under the domain of the municipality; is not a building; is used as a grove, nursery, livestock farm, or is used for growing agricultural items, flowers, or a forest. Depending on where this land is located (relative to residential areas and buildings) and on the size of the land (more than 50 dunams), the land may be considered agricultural land.
4. Land that is occupied: According to the legal definition, land that is occupied is any land that is under the authority of the municipality that is not agricultural and that is used and held separate from a building. In order for land to be considered “land that is occupied” and subject to the arnona tax, it must fulfill three conditions: a) occupied land that is not part of a building, b) land that is not agricultural land, c) the land is occupied and used.  
5. Building land: Any land that is under the authority of the municipality that is not a building and not agricultural land and not land that is occupied.

Our law offices have several legal specializations, including issues addressing property and administrative law, which includes arnona. Rules and regulations on arnona are under the authority of the Israeli Ministry of Interior (Misrad HaPanim) and the municipality. We provide a short series of articles on a variety of arnona-related subjects to help address frequently asked questions. 

The definitions we provide are general, and as can be expected in any legal field, there are many particularities and legal specifications beyond what we have detailed in this article. If you have any questions related to arnona, whether the subject of arnona tax or something else, please contact us.

Advocate Michael Decker specializes in laws relating to arnona, and he would be happy to talk with you.