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16 May 2023

Does This Mean We Pay HIGHER ARNONA FEES??

Strike continues across Israel over city tax redistribution plan

Schools shuttered in dozens of cities and municipal services frozen in ongoing strike protesting new city tax redistribution plan.


A strike launched Monday in protest of the government's new city tax redistribution plan continued in major cities and towns across Israel Tuesday, leaving schools closed and municipal services out of commission.

Dozens of municipalities across the country have vowed to continue striking until this Thursday, including Tel Aviv, Ramat Gan, Givatayim, Rishon LeZion, Modi'in-Maccabim-Re'ut, Ashdod, Haifa, Kfar Saba, Herzliya, Beit Shean, Kiryat Ono, Holon, Shoham, Ra'anana, Tiberias, Or Yehuda, Petah Tikva, Kadima-Tzoren, Ramat HaSharon, Hod HaSharon, Ganei Tikva, Nesher, Yokneam, and Ramla, while the municipality of Jerusalem has announced that it will not join the strike.

As part of the strike, municipal offices will not be open to the public nor will they receive telephone calls. Garbage collection and street cleaning services provided by municipal workers have also been suspended. Schools and daycare centers have also been shutter, though special education services continue to operate.

On Monday,the Knesset Finance Committee approved the so-called “Arnona Fund” bill, sending it to the Knesset plenum for its second and third readings next week.

If passed, the Arnona Fund law would appropriate between 10% to 28% of commercial property taxes raised by municipalities, with higher income communities paying a higher rate, to support a fund which would subsidize lower income communities to encourage them to build more housing units.

Municipal leaders and Opposition lawmakers have decried the law as a stealth tax on Israelis that would deprive cities of much-needed revenue.

"This law is not acceptable to the Federation of Local Authorities," said Modi'in-Maccabim-Reut Mayor Haim Bibas on Sunday. "We oppose it and have opposed it from the beginning. It is contrary to any concept of municipal rule and central government-municipal government relations.”

"We would be very happy if this chapter were to be removed from the agenda without votes - and forgotten by history. But we all understand that the game is rigged in advance by the automatic coalition majority. With this understanding, we acted in every possible way to reduce and minimize the damages caused as a result of this bill - and the result is this compromise that is now being presented in the committee that I wish had never come here at all.”

http://www.israelnationalnews.com/news/371501 

RE STEALTH TAX:

Gantz: Arnona Fund law is another tax increase for Israeli citizens

 May 16, 2023, 12:42 AM (GMT+3)


MK Benny Gantz from the National Unity Party attacked the “Arnona Fund” law that was approved by the Finance Committee on Monday evening, and which will be voted on next week as part of the Arrangements Law.

"The Arnona Fund law that the Finance Committee has now approved means another increase in taxes for the citizens of Israel, on the day we were informed of more price increases. We will continue to fight to defeat the proposal in the plenary,'' Gantz said.

ABOUT THE FUND:

Mayors threaten to strike over property tax fund

Mayors of wealthy cities protest Smotrich's move to create fund to gather property taxes to promote construction in poorer towns.


[…] The fund, which was established under the Arrangements Law at the initiative of Finance Minister Bezalel Smotrich, would require municipalities to set aside 10-28% of the funds raised from property taxes collected from businesses for the promotion of construction in poorer communities such as periphery communities.

The fund would also encourage residential construction, as opposed to the current situation, which favors the construction of businesses and industrial areas due to the high property taxes businesses pay. […]

http://www.israelnationalnews.com/news/371408

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