Against the background of the dramatic rise in the consumer price index, the property tax rate is also expected to rise by 1.45%.
The property tax rate is updated automatically at the beginning of each year.
It is calculated in May, according to half of the rise in the consumer price index in the past year, which stood at 2%, plus the public wage index which fell by 0.55%.
As a result, starting in January 2023, the residential property tax rate will increase by 1.45%.
However, the government can freeze the rise in prices by signing a temporary order, as has been done in the past.
Recall that at the beginning of the current year, the property tax rate rose by 1.9% and joined further price increases in the economy.
The public is expected to spend almost NIS 33 billion on property taxes
A high property tax rate not only increases the monthly expenses of households, but also increases the expenses of businesses, which pass on the increase in prices to the consumer, when property tax rates for businesses are higher than the residential property tax.
In 2022, the public is expected to spend almost NIS 33 billion on property taxes, when only a decade ago it paid about NIS 25 billion.
This is a drastic jump of more than 31% - according to data from the Manufacturers' Association and the presidency of employers and businesses recently published in "Israel Today".
The residential property tax rate has soared by more than 22% in the last decade.
The jump in the price of property taxes is of course explained not only by the increase in the tariff, but also by the addition of housing units and offices and the change in the way property taxes are calculated.
The mechanism that used to moderate the increase in property taxes, the "efficiency coefficient", was abolished about nine years ago.
Were we wrong?
Fixed!
If you found an error in the article, we'll be happy for you to share it with us
