Cities with the Highest Municipal Tax (Arnona): Updated Ranking
The update to the Arnona calculation per square meter corrects distortions that ignored gaps in measurement methods between different authorities. The revised ranking more accurately reflects the actual charge per resident and presents a completely different picture regarding the cost of municipal living.
The "Local Government Status" dashboard of the Ministry of Interior recently updated the weighted Arnona charge index per square meter after incorporating the various measurement methods used by local authorities.
Data published in the past ignored the differences in measurement methods and painted a picture that did not reflect reality, because the ranking referred solely to the tariff component (price per single square meter), while the Arnona charge per resident is determined by the product of the tariff and the chargeable area (chargeable area × tariff = Arnona charge amount).
For example, in Jerusalem, which held first place in the previously published index calculated by tariff alone, the chargeable area is 20%-30% lower than in most authorities in the country due to the "net-net" measurement method used in the capital. According to this method, no Arnona payment is collected for the areas of internal and external walls and common areas in the building (lobby, stairwells, etc.). It is possible that the tariff in authorities that measure by the "gross-gross" method will be significantly lower, but the final area for charging will be larger due to the addition of internal and external wall areas and common areas in the building.
Now, the index update has lowered Jerusalem to 12th place in the Arnona cost ranking. This is also true for many regional councils where the measurement method suitable for cities does not reflect the actual situation. For example, the Hevel Eilot Regional Council dropped from second place in the country to the bottom of the top ten.
