For Israeli residents navigating the often-complex labyrinth of municipal bureaucracy, a vindicating report has emerged this week. State Comptroller Matanyahu Englman, acting in his capacity as the Ombudsman, revealed that nearly half of all citizen grievances regarding Arnona (municipal property tax) filed between 2023 and late 2025 were justified, exposing a troubling trend of administrative overreach and statutory non-compliance across local authorities.
Key Findings from the Ombudsman’s Desk
- High Validation Rate: A staggering 40% of complaints lodged against local municipalities were deemed justified upon review.
- Administrative Failure: The vast majority of these valid complaints stemmed from improper administration or actions taken without legal authority.
- Financial Restitution: Following the Comptroller’s intervention, over 376,000 NIS was returned to citizens who had been unlawfully charged.
- War-Time Context: Specific focus was placed on the failure of some councils to honor discounts for IDF reservists serving during the “Swords of Iron” war.
Administrative Failures Drive Citizen Grievances
The report breaks down the anatomy of bureaucratic error, highlighting that technical mistakes often mask deeper administrative neglect rather than simple clerical errors. According to the data, 70.3% of the justified complaints were rooted in “improper administration” (Minhal Lo Takin), signaling a systemic failure in how certain municipalities manage their internal protocols. Even more concerning, 24.1% of the validated grievances involved local authorities acting contrary to the law or without legal authority, while 5.6% were attributed to excessive rigidity or palpable injustice. These figures suggest that a significant portion of the Israeli public is being overcharged not due to calculation errors, but due to flawed governance.
Which Cities Top the List for Bureaucratic Friction?
Certain municipalities have emerged as hotspots for friction between the establishment and the taxpayer, with data pinpointing exactly where residents struggle most to receive fair treatment. When analyzing the volume of complaints per 100,000 residents, the city of Tiberias led the list (64.2), followed closely by Harish (60.5), Beit Shemesh (45.6), Netivot (41.9), and Lod (40.7). However, volume does not always equal validity. When the Comptroller examined the percentage of complaints found to be justified, Harish again topped the chart with a 60% validation rate. It was followed by Tiberias (58.1%), Jerusalem (50.9%), Be’er Sheva (47.2%), and Lod (41.7%). The inclusion of major urban centers like Jerusalem underscores that administrative challenges are not limited to smaller peripheral towns.
Economic Strain and the Reservist Factor
The financial data paints a complex picture of Israel’s local economy, which has been exacerbated by the intense security situation following the October 7 massacre. While the total volume of Arnona collected by authorities rose by 3 billion NIS—reaching 31.2 billion NIS over two years—the actual rate of collection dropped from 73% to 72%. Simultaneously, household and business debts to municipalities swelled by approximately one billion NIS.
Amidst this economic pressure, the report highlighted a critical moral failure regarding national security. In one egregious case, the municipality of Kiryat Ata initially refused to grant a legally mandated tax discount to an IDF reservist who had served dozens of days under an emergency call-up (Tzav 8). It was only after the Comptroller’s office intervened that the soldier received the benefits owed to him. Englman emphasized that in the post-October 7 reality, denying rights to residents—especially those defending the state—is unacceptable.
How Were Specific Injustices Rectified?
Beyond the macro-statistics lie personal stories of citizens fighting for financial restitution against powerful local councils, proving the effectiveness of the Ombudsman’s office. The report detailed a case in Tel Aviv where a resident was ignored after requesting a refund for a measurement error; following intervention, the city retroactively corrected the apartment size from 28 to 25 square meters (dating back to 2015) and refunded the difference. Similarly, the city of Elad attempted to collect debt on a property from previous owners who had already sold it. The inquiry forced the municipality to cancel the debt. In total, the direct intervention of the Ombudsman resulted in 376,508 NIS being returned to the public, proving that oversight mechanisms in Israel remain robust and effective.
| Municipality | Complaints per 100k Citizens | Justified Complaint Rate (%) |
|---|---|---|
| Harish | 60.5 (2nd Highest) | 60.0% (Highest) |
| Tiberias | 64.2 (Highest) | 58.1% |
| Jerusalem | Not in top 5 volume | 50.9% |
| Be’er Sheva | Not in top 5 volume | 47.2% |
| Lod | 40.7 | 41.7% |
| Summary | High volume does not always mean high validity, though Harish and Tiberias struggle with both. |
Navigating Municipal Tax Disputes
- Verify Property Measurements: As seen in the Tel Aviv case, municipalities may hold outdated square footage data. If your tax bill seems high relative to your actual living space, commission a private measurement and appeal.
- Secure Reservist Rights: If you served under Tzav 8 during the war, you are likely entitled to significant discounts. Do not accept an initial rejection from the municipality as final.
- Document Property Transfers: When selling a home, ensure the municipality formally registers the transfer of ownership immediately to avoid “zombie debts” like those attempted in Elad.
Glossary
- Arnona: A municipal property tax in Israel levied on real estate, calculated based on the size, location, and usage of the property.
- Ombudsman: A government official appointed to investigate individuals’ complaints against public authorities; in Israel, this role is filled by the State Comptroller.
- Minhal Lo Takin: Hebrew for “Improper Administration,” a legal term describing bureaucratic conduct that fails to meet standards of fairness, efficiency, or legality.
- Tzav 8: An emergency call-up order for IDF reserve forces, often entitling the soldier to specific economic benefits and protections.
Methodology
This article is based on the official “Special Report on Public Complaints Regarding Arnona Collection” released by State Comptroller Matanyahu Englman on February 3, 2026. The report analyzes data and complaints filed between January 2023 and November 2025. Statistics regarding collection rates, debt increases, and specific case studies are derived directly from the Comptroller’s findings.
Frequently Asked Questions
Q: What was the primary reason for complaints being found justified?
A: The leading cause was “improper administration” (70.3%), followed by actions taken without legal authority (24.1%). This indicates that the majority of issues were due to the municipality acting against regulations rather than simple math errors.
Q: Did the war impact municipal tax collection?
A: Yes. While the total amount collected increased, the collection rate decreased, and overall debt rose by a billion NIS. This reflects the economic difficulties faced by residents and businesses during the war. Additionally, specific complaints arose regarding the failure to grant mandatory discounts to IDF reservists.
Q: Which municipality had the highest percentage of justified complaints?
A: The municipality of Harish had the highest rate of justified complaints at 60%, meaning that in more than half the cases where a resident complained, the city was found to be in the wrong.
Wrap-up
State Comptroller Englman’s report serves as a crucial wake-up call for Israel’s local authorities. While the collection of 31.2 billion NIS in taxes is essential for municipal services, the integrity of the process is equally vital. The successful return of funds to citizens and the correction of rights for reservists demonstrate that Israel’s system of checks and balances functions effectively. Residents are encouraged to remain vigilant, verify their billing details, and utilize the Ombudsman’s office when they encounter administrative injustice.
Final Summary
- Systemic Accountability: 40% of all Arnona complaints were justified, highlighting the essential role of the State Comptroller in protecting citizens.
- Protecting Defenders: The report reinforced the state’s obligation to ensure IDF reservists receive their promised financial rights without bureaucratic hurdles.
- Economic Reality: Rising debts and lower collection rates reflect the broader economic strain on Israeli households since the onset of the war.
Why We Care
This report is significant because it demonstrates the resilience of Israel’s internal democracy and the strength of its consumer protection mechanisms. Even during a time of war, the state maintains a rigorous system of checks and balances, ensuring that local governments remain accountable to the law and to the citizens they serve. Furthermore, the Comptroller’s insistence on protecting the rights of IDF reservists underscores the national consensus on supporting those who bear the burden of defense.
