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17 Elul 5765 - September 21, 2005 | Mordecai Plaut, director Published Weekly
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NEWS
Yeshivas Required to Pay Property Taxes on Dorms and Offices

By Betzalel Kahn

Interior Ministry Director-General Oscar Abu Razek issued a decision to require yeshivos gedolos with students over the age of 18 to pay local authorities full property taxes (arnona) on space used for dormitories. Jerusalem Deputy Mayor Rabbi Uri Maklev and Bnei Brak Deputy Mayor Rabbi Avrohom Rubinstein asked MK Rabbi Moshe Gafni to intervene in the matter.

Torah institutions with students over the age of 18 have always been eligible for the same exemption given to mandatory educational institutions (with students under the age of 18), but a few months ago a directive was issued to local authorities to collect property taxes in full from Torah institutions with students over the age of 18.

The directive appears to be highly discriminatory since non- government associations of every kind are generally eligible for a two-thirds discount on property taxes, in accordance with certain criteria. Furthermore Torah institutions are defined not only as NGOs but as public institutions as well.

Although universities cannot operate as NGOs they also receive the two-thirds discount under a special directive that covers all institutions under the Council for Higher Education.

Several weeks ago yeshivas were notified that only their study areas would be exempt, meaning full taxes would be levied on dormitories, offices and other areas of the yeshiva. Rabbi Gafni is now working with Rabbi Maklev and Rabbi Rubinstein to prevent this financial blow from landing on the yeshivas, which already face financial difficulties. Rabbi Gafni is trying to alter the decision under the Arrangements Law for next year's national budget. Betzedek has also been asked to address the matter as soon as possible and to turn to judicial figures to alter the decision.

 

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