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24 Shevat 5766 - February 22, 2006 | Mordecai Plaut, director Published Weekly
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NEWS
Bnei Brak Municipality Collected over NIS 157 Million in Property Taxes in 2005

by A. Cohen

Bnei Brak Mayor Rabbi Yissochor Frankentahl said he would provide double matching funds for any sum municipal collections department workers collect beyond the anticipated amount for the 2006 fiscal year, using the funds to develop infrastructures around the city.

The announcement accompanied the annual report on property tax and water bill collection. Last year the mayor announced that he would make available funding comparable to amounts workers collected beyond the anticipated amount. Last year, the additional amount collected came to NIS 10 million and in response the mayor approved NIS 10 million for development and environment quality.

The report data shows Bnei Brak collected 3.34 percent more than the NIS 157 million ($33 million) collected during the previous year.

This growth pattern has been constant. In 2003, NIS 147 million ($31 million) was collected and in 2004, NIS 152 million ($32 million). This growth has special significance considering that the socioeconomic state of many residents did not increase last year at all compared to the previous year. Special efforts were made to collect back taxes through various enforcement means, producing an increase of 30 percent. In 2003, NIS 27 million was collected in back taxes, compared to NIS 29.5 million in 2004 and NIS 38 million in 2005.

In the area of water bill collection a 13 percent increase was reported with a total of NIS 46 million for 2005, compared to NIS 41 million in 2004 and NIS 38 million in 2003. Collection of unpaid water bills rose 4.5 percent in 2005 to NIS 8.2 million, compared to 7.9 million in 2004.

The number of property tax discounts decreased from 2,470 to 2,343 and discounts for retirees and Bituach Leumi allotment recipients decreased from 8,841 to 8,534. In the category of discounts for income support allotment recipients, discounts decreased from 1,945 in 2004 to 1,768 in 2005. Meanwhile, due to difficult economic conditions and cuts in government allotments, discounts based on financial circumstances rose from 9,440 in 2004 to 9,695 in 2005.

Discounts for municipality employees were eliminated based on the Economic Arrangements Law and the municipality's recovery program. Last year these discounts totaled NIS 167,817. Discounts for payment by standing bank order were also cancelled. These discounts totaled an average of NIS 2 million per year.

Property taxes were collected for 42,397 properties, of which 36,220 were residential.

Due to a lack of lots for private construction, the size of the properties increased only slightly last year, rising 0.82 percent to a total of 2,786,503 square meters. In contrast, offices and other commercial spaces grew by 3.24 percent, from 277,912 square meters in 2004 to 286,922 square meters in 2005.

The figures and conclusions from the report were also presented at a forum for revenue administration workers attended by the mayor, the municipal treasurer, accountant Aharon Adler, and Municipal Revenue Commissioner Shlomo Itzkovitz, who was responsible for the report. The mayor thanked the workers, particularly Mr. Itzkovitz, for their efforts to expand the collection system and improve efficiency, noting that the substantial increase in the amount of revenue collected would allow the development of services in various areas such as education and the city's appearance and preclude the need to dismiss additional workers as part of the recovery program designed to stabilize the city treasury.

 

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