A special report by the State Comptroller and Ombudsman, Matanyahu Englman, on public complaints concerning the collection of municipal property tax (Arnona): approximately 41% of the complaints concerned discounts that were not granted to eligible individuals. Thanks to the intervention of the Ombudsman’s office, complainants received approximately NIS 376,000
The State Comptroller and Ombudsman, Matanyahu Englman, published a special report on public complaints regarding the collection of municipal property tax (February 3, 2026).
Property tax is one of the most expensive taxes we pay: in 2023, local authorities collected approximately NIS 31 billion from residents in property tax. Local authorities are permitted, and sometimes required, to grant property tax discounts to populations deserving support, including senior citizens, people with disabilities, low-income individuals, soldiers in mandatory service and reservists, bereaved families, new immigrants, Holocaust survivors, single parents, residents undergoing urban renewal (evacuation-reconstruction) processes, recipients of long-term care benefits, businesses during the COVID-19 period, residents of Sderot and the Gaza border area, released captives, and evacuees from the south and north during the war.
Despite this, most complaints (approximately 41%) received by the Ombudsman’s office in the State Comptroller’s Office on property tax issues in the years 2023–2025 were from eligible individuals who said they did not receive the discounts and exemptions they were entitled to. The largest number of property tax complaints came from residents of localities in socio-economic clusters 2 and 3 (low socio-economic level), most of them concerning discounts and exemptions.
Forty percent of the complaints concerning property tax were found to be justified or were corrected. As a result of the examination of residents’ complaints, and the Ombudsman’s decisions following that examination, complainants who were found eligible received a total of approximately NIS 376,000.
According to a review by the Ombudsman’s Office, the municipalities with the highest number of complaints (per 100,000 residents) were Tiberias, Harish, Bet Shemesh, Netivot, and Lod.
The municipalities with the highest number of justified complaints and complaints that were remedied were Harish, Tiberias, Jerusalem, Be’er Sheva, and Lod.
In 70% of the justified complaints, the main reason they were found justified was action contrary to proper administrative practice. In 24% of those cases, the local authority’s conduct was found to be contrary to the law and without legal authority.
“While local authorities are responsible for collecting property tax, they must also act properly and efficiently in granting discounts to eligible residents and businesses,” said State Comptroller and Ombudsman Matanyahu Englman upon the publication of the report. “This is the duty of the authorities toward their residents. The past two years since the Simchat Torah massacre of 7 October 2023 have been extremely challenging, both security-wise and economically. In this reality, conduct that deprives residents of their rights in a manner contrary to proper administrative practice and the provisions of the law cannot be accepted. The Minister of the Interior and the heads of the local authorities must act to correct these deficiencies.”
Were you personally harmed by a public body? You may file a complaint with the Ombudsman’s Office here.
