Property taxes will increase, but there is also good news

The public wage index affected the property tax paid in 2023 and it will rise by 1.37 percent.

However, the increase is about half a percent lower than last year.

How do we calculate how much property tax we pay?

Walla!

Of money

25/05/2022

Wednesday, 25 May 2022, 16:03

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The property tax that Israeli residents will pay in 2023 is expected to increase by 1.37% compared to 2022, according to a survey conducted by the law firm of Katz Geva, Itzkovich (KGI), which specializes in municipal taxation.

According to Katz Geva, Itzkovich (KGI), in accordance with the Arrangements Law, property tax rates in local authorities are updated annually, according to a combined formula, which takes into account 50% increase in the consumer price index and 50% increase in the public wage index.

The measurement is made between the known indices on 20/5/2022 compared to the known indices on 20/5/2021.

This year, although the consumer price index rose by 1.98% during this period, due to the decline in the public wage index in the corresponding period (0.61%), property taxes will rise at a relatively low rate relative to the rate of increase in the index for the corresponding period.

For comparison, in 2022 the property tax increased by 1.92%.

"The rate of increase set is mandatory for all authorities in the country, but any authority may request an exceptional request to increase or reduce the property tax in relation to the rate of update," explains Adv. Alex Katz. Allow a local authority to deviate from the national update rate. "

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Update rates in 2023-2007

Rate of property tax update (Photo: PR)

Adv. Alex Katz (Photo: Shani Nachmias)

According to Adv. Katz, the Ministry of the Interior set guidelines when examining exceptional requests: "For example, an exceptional reduction will be approved for an authority that is defined as stable, has no deficit and is balanced in the current budget.

Adv. Katz further explains that "an ordinary citizen cannot also obtain the rate of the increase, but this is a right reserved only for the authorities.

By law, in a normal year other than an election year, a city council decision regarding the imposition of property taxes will be made no later than July 1 of the fiscal year in respect of which the property tax is imposed.

Prior to the transfer of the application to the Ministry of the Interior, the local authority is required to notify each assessee specifically of its intention to submit such an application and to detail its summary. "

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