A wave of exceptional requests for Arnona increases: The localities where the sharpest jump is expected

A wide range of requests for exceptional increases in municipal property tax (Arnona) have been submitted in recent days to the Ministry of Interior. These are increases beyond the "autopilot" mechanism, according to which the Arnona will rise across the country in 2027 by 3.05%. In most cases in the past, such requests were approved, although sometimes the increase was slightly reduced.

Data obtained by "Mamon" and ynet shows that only a few authorities announced requests to lower Arnona rates. The Federation of Israeli Chambers of Commerce and the Manufacturers Association of Israel expressed strong opposition to the planned increases for businesses and households, announcing that they would fight them. If approved, the increases will take effect on January 1st, leading to higher costs ranging from hundreds of shekels for households to tens of thousands for businesses.

Examples of requested increases:

• Azor: +10% for businesses (13.05% total including automatic update).

• Ramat Gan: +6.95% (10% total for businesses and residences).

• Ariel: +5.15% (8.2% total for businesses and residences).

• Ashdod: +4.45% (7.5% total for businesses and residences).

• Nazareth: +30% (33.05% total for residences and businesses).

• Eilat: +4% for vacation housing, and 1.6%–8.15% for hotels.

• Gan Yavne: +10% total.

• Kiryat Malachi: +8.05% for businesses.

• Rehovot: +8% for residences.

• Sakhnin: +5% total.

• Tel Mond: +5% total.

• Ness Ziona: +4.55% total.

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Conversely, a few requests for tax reductions were made: Or Yehuda requested reductions for businesses of 2%–12%, and Ashkelon requested a 3.05% reduction for commerce (effectively canceling the automatic update).

Shahar Turgeman, President of the Federation of Israeli Chambers of Commerce, commented on the data:

"The wave of exceptional requests proves that the Arnona increase mechanism has long been out of control. Instead of requiring local authorities to become more efficient and reduce expenses, the state allows them time after time to reach into the pockets of businesses and residents."

According to Turgeman, Arnona for businesses in Israel is already 40% higher than the European average. He argued that this policy harms growth and increases the cost of living, creating a distortion where local authorities favor commercial development over residential neighborhoods. "It is time to set a simple rule: an authority that has not proven it has become more efficient should not receive approval for an Arnona increase," he concluded, praising Or Yehuda and Ashkelon for choosing a different path.