Wednesday, November 25, 2015

Fight for Your Right (To Pay Tax)

Dafna Shemer

www.jiis.org

Jerusalem’s Arnona (municipal tax) is particularly high, the highest in Israel. In 2014 Jerusalem’s total due Arnona was 1,173,000,00 NIS (New Israeli Shekels) for 212,000 housing units. Arnona discounts amounted to 26% of the total, with 40% of the discounts going to residents from Jerusalem neighborhoods of low socio-economic status (a socio-economic status of 2-5, with 20 being the highest status, according to the 2008 census). 

An examination of Jerusalem’s lower socio-economic neighborhoods reveals an interesting picture regarding the exercise of rights on the part of East Jerusalem versus West Jerusalem residents. These neighborhoods are geographically and socially distinguishable as areas populated by the ultra-orthodox (haredi) in West Jerusalem and by Palestinians in East Jerusalem. 

Most (72%) of the properties in West Jerusalem that belong to residents of lower socio-economic standing have a ranking of 4 or 5, whereas in East Jerusalem only 49% of the properties belong to residents with a ranking of 4 or 5. 

Building on the assumption that people with the same socio-economic status would receive the same discount in Arnona, given their income, we examined lower socio-economic neighborhoods in West Jerusalem and in East Jerusalem. We examined how many discounts were granted on the basis of income, as a proportion of the total number of apartments in the neighborhood. Evidently, the percentage of Arnona discounts based on income, as a proportion of the total number of apartments, is higher in West Jerusalem (39%) than in East Jerusalem (26%). For the sake of comparison, we note that in neighborhoods of higher socio-economic standing (15-19), 6% of the apartments receive a discount on the basis of income. 

Both East Jerusalem and West Jerusalem neighborhoods show a decrease in the percentage of discounts granted on the basis of income as the socio-economic ranking of the neighborhood rises. East Jerusalem neighborhoods with a socio-economic status of 2 received discounts for 27% of the apartments therein, whereas West Jerusalem neighborhoods with a ranking of 2 received discounts for 42% of the apartments therein. East Jerusalem neighborhoods with a socio-economic status of 5 received discounts for 15% of the apartments therein, while for West Jerusalem this figure was 35%. 

When we examine the total Arnona collected, in relation to the total due without discount, amidst residents of lower socio-economic standing, we find that collection rates in East Jerusalem (72%) are lower than in West Jerusalem (85%). Here too, as the socio-economic status increases from 2 to 5, Arnona collection rates increase. For higher socio-economic rankings (15-19), collection rates are higher too – at 96%. 

In sum, one might conclude that residents of West Jerusalem are more effectively exercising their rights vis-à-vis Arnona than East Jerusalem residents. And perhaps as a consequence, Arnona collection in West Jerusalem is more effective and efficient than it is in East Jerusalem.


No comments:

Post a Comment