Dear residents,

Last week, the council made a difficult yet responsible and inevitable decision: we voted in favor of raising property tax rates for residences and businesses in Efrat. This increase, beyond the automatic adjustments, is necessary due to several economic factors affecting our municipality.

Efrat's status in the socio-economic index, currently at 7 out of 10, contributes to reduced state revenues. Additionally, recent wage agreements, rising commodity prices, and a cumulative deficit of approximately NIS 3 million in council revenues further necessitate these adjustments.

The increased property taxes, alongside other initiatives, aim to reduce our annual deficit and lessen our dependence on state funding, which as mentioned, Efrat is no longer entitled to as they previously were.

We note that in 2022, the previous council voted in favor of an unusual increase in property taxes, by five percent, because it also understood that this was an inevitable process based on reality. However, after the previous council voted in favor of the increase, the Ministry of the Interior and Finance at the time, made a policy decision to reject all the requests that came from the authorities regarding unusual increases in property taxes, and therefore the increase was not actually implemented.

Currently, the property tax rates in Efrat are low compared to authorities similar to us.

This fact means that requests to the Ministry of the Interior for budget assistance through grants are met with a demand to raise the property tax rate.

With a broad, responsible, thought-out, and attentive perspective, during the council meeting on Monday, the 18th of Sivan, June 25, 2024, the council approved a phased increase in property tax rates for the years 2024 and 2025 in accordance with the following details:

 

Residential Property Tax:

In 2024 - today the property tax rate is 50.82 NIS per square meter per year including the automatic update of 2.68%

An additional 3.62 NIS per square meter per year (7.13% increase) was requested, totaling 54.44 NIS per square meter per year.

In 2025 - An additional 1.2 NIS per square meter per year (2.1% increase) on top of a 5.29% automatic update.

Business Property Tax:

In 2024 – In order to support local business, it was decided not to raise the property tax for businesses.

In 2025 - an exceptional increase of 1.77 NIS per square meter per year (2.1%) in addition to an automatic update of 5.29%

Please note, the council provides property tax discounts as stipulated by law, based on income, disability, and senior citizen status.

We firmly support the necessary and obligatory measures we have taken, steps that, God willing, will enhance the resilience of our community. We sincerely thank our residents for their collaboration in enhancing and expanding resident services. We recognize that our collective vision for growth and adding housing units, requires essential development in industrial, commercial, and tourism sectors.

Please note that any proposed increases in property tax rates require approval from the Ministry of the Interior. As long as we have not received approval, rates will remain as set in January 2024 plus the automatic updates.

 

Best regards,

 

Dovi Shefler

Mayor of Efrat