Arnona
Israeli municipal property tax. Levied annually on the occupier of a property. The primary independent funding mechanism for Israeli local authorities.
Arnona is calculated by area (typically in square meters) rather than by property value, applied through municipal rate schedules that vary by zone, building use, and local-authority classification. The occupier — owner, tenant, or commercial user — is the liable party, not the property owner where the two differ. Discounts are available for designated populations including new immigrants under the Aliyah absorption-period framework, retirees, and certain disability categories.
Because Arnona is the principal independent revenue source for Israeli municipalities, rates and rate-setting authority sit at the intersection of municipal autonomy and Ministry of Interior oversight. Commercial Arnona is a meaningful operating cost for Israeli retailers, restaurants, hotels, and offices, and is a recurring subject of municipal-level negotiation for major commercial tenants.
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