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Economic Arrangements Law (Legislative Amendments for Achieving Budget Targets), 5753-1992

חוק הסדרים במשק המדינה (תיקוני חקיקה להשגת יעדי התקציב), תשנ"ג-1992

Published: 1993-01-07Consolidated Hebrew text as of 2026-08-31 · Last amended 2025-11-26✓ Amendment status checked against the Knesset legislation record on 2026-09-29
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Unofficial English translation — for reference only. It may contain errors or omissions and cannot be relied on as a legal text. Only the Hebrew text published in Reshumot is legally binding.More

This English text was translated from the official Hebrew using a range of translation tools, and it undergoes ongoing checks and updates. It is not a certified translation.

Despite these checks, it may contain errors, omissions, or imprecise renderings of legal terminology and cross-references, and it may not yet reflect the latest amendments. It cannot be relied upon as a legal text.

The Hebrew text as published in Reshumot (ספר החוקים) and on the Knesset website is the sole authoritative and legally binding version. In any discrepancy, the Hebrew text prevails.

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Chapter I: Purpose of the Law

Purpose of the Law§

1.

This Law comes to amend various laws, to repeal them, to defer their commencement or to extend their validity, and to prescribe additional provisions, for the purpose of enabling the achievement of budget targets and compliance with the deficit ceiling for the financial year 1993 and the achievement of economic policy targets.

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Chapter II: Budget Laws

Amendment of the Budget Foundations Law – No. 13§

2.

[An amendment was made to the Budget Foundations Law, 5745-1985]

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Chapter III: National Insurance

Amendment of the National Insurance Law – No. 79§

3.

[Amendments were made to the National Insurance Law [Consolidated Version], 5728-1968]

Amendment of the National Insurance Law (Temporary Provision)§

4.

[An amendment was made to the National Insurance Law (Temporary Provision), 5751-1991]

Repeal of the Economic Stability Law (Miscellaneous Provisions)§

5.

[The Economic Stability Law (Miscellaneous Provisions), 5747-1987 was repealed]

Commencement and Application§

6.
(a)This Chapter shall commence on the 8th day of Tevet 5753 (1 January 1993) (hereinafter – the commencement day).
(b)Paragraphs (1) and (3) of section 3 shall apply to a person whose determining date falls on the commencement day or thereafter, and paragraph (5) of section 3 shall apply in respect of unemployment benefits paid for a period from the commencement day onwards.

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Chapter IV: Local Authorities

Definitions§

7.

In this Chapter and in the Regulations made thereunder –

"property", "building", "agricultural land", "occupied land", "building land", "occupier" and "sub-tenant" – as their meaning in section 269 of the Municipal Corporations Ordinance;

"council" – as defined in section 1 of the Municipal Corporations Ordinance and also a council established under the Local Councils Ordinance;

"index" – the consumer price index published by the Central Bureau of Statistics;

"public sector wage index" – the index of the average monthly wage per salaried employee's post, by sector, sub-sector and main economic branch in the total of all public services, as published by the Central Bureau of Statistics in the Monthly Wages and Employment bulletin (Table H/9), in the column "total at current prices";

"update rate" – an update at the rate of the amount obtained by adding one half of the index update rate and one half of the public sector wage index update rate;

"index update rate" – the rate of change in the index that was known on 20 May of the preceding financial year compared with the index that was known on 20 May of the financial year before it;

"public sector wage index update rate" – the rate of change in the public sector wage index that was known on 20 May of the preceding financial year compared with the public sector wage index that was known on 20 May of the financial year before it;

"the Ministers" – the Minister of Finance and the Minister of the Interior.

General Property Tax§

8.
(a)A council shall levy a general property tax in every financial year on the property within its area that is not building land; the property tax shall be calculated per unit of area according to the type of property, its use and its location, and shall be paid by the occupier of the property.
(b)The Ministers shall prescribe by Regulations the types of property and also rules concerning the manner of calculating the area of a property, determining its use, location and classification for the purpose of levying a general property tax, subject to the provisions of subsection (b1) with respect to the manner of calculating the area of a property.
(b1)
(1)The calculation of the area of a property for the purpose of levying a general property tax shall be in square metres; the general property tax to be levied on a property shall be the amount obtained by multiplying the number of square metres of the property by the property tax amount per square metre;
(2)In calculating the area of a property under paragraph (1), every fraction of a square metre shall be rounded to the nearest whole metre; one half of a square metre shall be rounded downwards;
(3)Notwithstanding the provisions of paragraph (2), where a local authority, on the eve of the publication of the Economic Arrangements Law (Legislative Amendments for Achieving Budget Targets) (Amendment No. 16), 5777-2017 (in this paragraph – Amendment No. 16), calculated the area of the properties within its area, all or some of them, for the purpose of levying a general property tax, in such a manner that every fraction of a square metre was charged proportionally according to the number of centimetres, or in such a manner that every fraction of a square metre was rounded to the whole metre downwards (in this paragraph – a different method of calculation), it shall continue to calculate the area of the properties within its area in that manner, unless the council of the local authority resolved in its decision concerning the levy of a general property tax that the local authority shall calculate the area of the properties within its area in the manner set out in paragraph (2); a local authority that did not so resolve may calculate the area of properties within its area by the different method of calculation even if their area was not calculated as aforesaid on the eve of the day of publication of Amendment No. 16, provided however that from the financial year 2022 onwards the area of all the properties within its area shall be calculated in the manner set out in paragraph (2) or by the different method of calculation only.
(c)Notwithstanding the provisions of subsection (a) and the provisions of any law, where the property is a property not used for residential purposes and its occupier is a private company that is not a protected tenant under the Tenant Protection Law [Consolidated Version], 5732-1972 (in this section – a business), and the occupier has not paid all or part of the general property tax levied on it under subsection (a), the local authority may collect the final property tax debt from the controlling shareholder of the private company, provided that the special circumstances enumerated in section 119a(a) of the Income Tax Ordinance [New Version] are fulfilled in relation to that shareholder, with the necessary modifications; in this section –

"final property tax debt" – a debt for the payment of property tax in respect of which the time for lodging an objection, appeal or further appeal, as the case may be (in this section – appeal proceedings), has passed, and if appeal proceedings or other legal proceedings were lodged – after the giving of a final judgment or final decision that is no longer subject to appeal;

"private company" – as defined in the Companies Law, 5759-1999;

"controlling shareholder" – as defined in section 119a of the Income Tax Ordinance [New Version].

(d)
(1)In this subsection, "shade structure" – a structure without walls, erected in a courtyard, on a roof, or on a balcony of a residential building, supported on columns and built of lightweight materials, whose ceiling is a shading surface, provided that the gaps between the opaque parts of the shading surface are equally divided and constitute at least 40% thereof; however, the structure may be partially supported on not more than two walls of the residential building to which it is attached;
(2)Notwithstanding the provisions of subsection (a) and the provisions of any law, in respect of a local authority that, on the eve of the publication of the Economic Arrangements Law (Legislative Amendments for Achieving Budget Targets) (Amendment No. 17), 5778-2018, did not, pursuant to its decision concerning the general property tax under subsection (a), include the area of a shade structure attached to a property used for residential purposes in the calculation of the area of that property for the purpose of levying the property tax, the area of the said shade structure shall not be included in the calculation of the area of the property for the purpose of levying the property tax solely because the said shade structure was covered with a transparent cover made of plastic material, provided that the use to be made of the area of the shade structure is a use that may be made of a courtyard, roof or balcony of the residential building upon which the shade structure was erected, excluding use for the purpose of parking or storage.

Amounts of General Property Tax§

9.
(a)The Ministers shall prescribe by Regulations minimum amounts and maximum amounts for the general property tax to be levied by local authorities on each of the types of property, and they may also prescribe a ratio between the amounts to be levied on each of the types of property; the maximum and minimum amounts shall be updated for every financial year in accordance with rules to be prescribed by Regulations.
(b)The amount of the general property tax per square metre to be levied by a council on each of the types of property in any financial year shall be the amount that was lawfully due per square metre of that property in the preceding financial year, without any discount that may have been granted, plus the update rate, provided that the amount to be levied as aforesaid shall not be less than the minimum amount and shall not exceed the maximum amount prescribed by the Ministers by Regulations under subsection (a), and shall be subject to any other provision prescribed by Regulations as aforesaid and subject to the Regulations and rules under section 8(b); the Regulations under subsection (a) and the Regulations and rules under section 8(b) may prescribe that –
(1)a local authority may increase the amounts of general property tax, generally or for a type of property, at a rate higher than the update rate, provided that an increase of the property tax in respect of a property that is not a residential building shall be conditional upon an increase of the property tax in respect of a property of the type of residential building, in accordance with rules to be prescribed by Regulations;
(2)a local authority may levy a property tax otherwise than in accordance with the opening part of the subsection, provided that it has obtained the approval of the Ministers therefor; and that, before applying to obtain the approval of the Ministers, it sent to every occupier of a property in respect of which it intends to levy a property tax otherwise than as aforesaid, and in respect of a property situated in a revenue-sharing zone within the meaning of section 9b(b) of the Municipal Corporations Ordinance – also to every local authority listed in an Order issued under the provisions of that section, notice of its intention to do so; the notice shall state that the council of the local authority resolved upon a change of classification or sub-classification, or upon an increase or reduction, of the amount of the general property tax, as the case may be, and that it intends to apply to the Ministers for approval as aforesaid; the Ministers' approval under this paragraph shall be given by 15 December preceding the financial year in respect of which the approval is given, and in respect of a decision adopted as referred to in section 276(b) of the Municipal Corporations Ordinance – by the end of six months from the day the council adopted its decision concerning the levy of a general property tax as referred to in that section; the commencement of the Ministers' approval shall be at the beginning of the financial year in respect of which it is given; the Minister of the Interior or a person authorised by him shall notify the Finance Committee of the Knesset of the granting of the approval.
(b1)The Ministers may prescribe, in respect of a particular financial year, special rules for updating the amounts of the general property tax and also for updating the minimum amounts and maximum amounts for the general property tax (in this subsection – special update rules), which shall apply notwithstanding the provisions under subsection (b); such rules shall be prescribed no later than 30 May of the financial year preceding the year in respect of which they are prescribed; where the Ministers have prescribed special update rules in respect of a particular financial year, the local authority shall determine the amounts of the general property tax for that year in accordance with those rules and with the rules prescribed under section 8(b), and it may act in accordance with the provisions prescribed under paragraphs (1) or (2) of subsection (b), insofar as prescribed, unless otherwise prescribed in the special update rules.
(c)The Ministers shall prescribe by Regulations rules according to which general property tax shall be levied on property whose occupier is the State or a corporation established by law, and such rules may provide that a general property tax of zero shall be levied on certain types of property.
(c1)Notwithstanding the provisions of sections 4 and 5 of the Municipal Corporations and Government Taxes (Exemptions) Ordinance, 1938, the Ministers may, with the approval of the Finance Committee of the Knesset, prescribe rules according to which a general property tax shall be levied in respect of the properties listed in those sections; such rules shall prescribe the rate of property tax to be levied on types of properties, all or some of them, generally or for types of local authorities, and such rules may provide that a property tax of zero shall be levied.
(d)Regulations under this section shall be made with the approval of the Finance Committee of the Knesset.
(e)The commencement of the rules under subsection (c1) shall be at the beginning of the financial year 2000, even if they were prescribed in the course thereof.

Restriction on Increase of Property Tax§

9a.
(a)A council shall not change the sub-classification of a property that has undergone renovation, in a manner that entails an increase in the amount of the property tax that had been levied on that property under this Law as if the renovation had not taken place.
(b)Where area has been added to a property as a result of renovation carried out therein, the council may, notwithstanding the provisions of subsection (a) and subject to the provisions of this Law, levy a property tax on the additional area according to the appropriate sub-classification following the renovation.

Restriction on Levying of Property Tax in respect of Property Situated within the Area of a Local Committee§

9b.

Without derogating from the provisions of section 9(b)(2), a local committee within the meaning of section 3 of the Local Councils Ordinance shall not levy a general property tax for the first time on a type of property situated within its area except after having obtained the approval of the Ministers therefor; the provisions of the proviso to section 9(b)(2) shall apply in respect of the Ministers' approval under this section.

Non-Levy of Property Tax§

10.

Where a council has not levied a general property tax for a particular financial year, the property tax for that year within the area of the local authority shall be paid in the amounts and at the times prescribed for the preceding year, updated in accordance with the provisions under the opening part of section 9(b).

Property Tax Surcharge§

11.
(a)The Minister of the Interior may permit a local authority for which a rehabilitation plan has been approved under section 140d(b) of the Municipal Corporations Ordinance or under section 35d(b) of the Local Councils Ordinance to levy, within the financial year in which the said rehabilitation plan was approved, a surcharge to the property tax for the period from the day of approval until the end of the financial year, and to prescribe times for the payment of the surcharge; a permit under which property tax amounts are levied that are not in accordance with the provisions under section 9(b) also requires the consent of the Minister of Finance.
(b)The local authority shall notify every occupier liable to pay the surcharge of its amount and the times of its payment.
(c)A notice of the approval of a surcharge, its amounts and the times of its payment shall be published in Reshumot (Official Gazette).

Discounts on Property Tax§

12.
(a)The Ministers shall prescribe by Regulations the maximum rate of discount to be granted to a person who pays the general property tax in a single payment at the beginning of the financial year.
(b)The Minister of the Interior shall prescribe by Regulations conditions and rules for the granting of other discounts on general property tax payments, and the maximum rates of discount, and he may also prescribe the minimum rates of discount.
(c)A council shall not reduce general property tax payments unless the conditions prescribed by Regulations under this section have been fulfilled in respect of the occupier of the property, and in accordance with the rules and rates prescribed.
(d)For the purpose of any discount from the amount of the general property tax under any law, two residential apartments that have been merged into one apartment shall be regarded, notwithstanding the provisions of subsection (c) and any law, and notwithstanding the provisions of the Regulations prescribed under subsection (b), as one apartment used solely for residential purposes, even if something to the contrary is stated in any law in this regard.
(e)Notwithstanding the provisions of subsection (c) and any law, and notwithstanding the provisions of the Regulations prescribed under subsection (b), for the purpose of any discount from the amount of the general property tax under any law, in calculating the income of an occupier of a property, no account shall be taken of an allowance paid under Chapters IV and XI of the National Insurance Law [Consolidated Version], 5755-1995, or of foster care payments under the Foster Care for Children Law, 5776-2016, and they shall not be regarded as income, even if something to the contrary is stated in any law in this regard.
(f)
(1)Notwithstanding the provisions of subsection (c), in respect of a property used for the residence of a person with a disability, the property tax charge for residential purposes shall be reduced by the rate of discount to which that person with a disability would have been entitled as an occupier of the property according to the determination of the council, including conditions set by it, even if the occupier of the property is another person on behalf of the person with a disability; in this subsection, "property used for the residence of a person with a disability" – each of the following:
(a)a property that is used or intended to be used, in whole or in part, for the residence of a person with a disability as defined in the Equal Rights for Persons with Disabilities Law, 5758-1998, where such a person resides therein pursuant to a referral by the Ministry of Labour, Welfare and Social Services;
(b)a property that is one of the types of housing listed in item b(1) of the Schedule to the Mental Health Rehabilitation in the Community Law, 5760-2000, to which a person with mental health challenges is entitled pursuant to a rehabilitation programme under that Law;
(2)The provisions of paragraph (1) shall apply both to areas within the property used for the residence of the person with a disability and to other areas within that same property used by the person with a disability or by a person who is present in the property for the purpose of caring for or providing a service to the person with a disability;
(3)Where the property tax charge has been reduced pursuant to the provisions of paragraph (1), the person with a disability shall not be entitled to a discount on residential property tax in respect of another property of which he is the occupier.
(g)Notwithstanding the provisions of subsection (c) and any law, and notwithstanding the provisions of the Regulations prescribed under subsection (b), for the purpose of any discount from the amount of the general property tax prescribed under any law, in respect of a property used as the residence of a son or daughter, including a child in a foster family, of an occupier of a property, for whom and on account of his disability an allowance is paid by the National Insurance Institute, the amount of the discount shall be calculated for each person entitled to an allowance even if he is above the age of 18 and a disabled child allowance was not paid on his behalf, provided that the total rate thereof shall not exceed 90%.

Amendment of the Municipal Corporations Ordinance – No. 47§

13.

[Amendments were made to the Municipal Corporations Ordinance]

Amendment of the Law for the Amendment of the Municipal Corporations and Government Taxes (Exemptions) Ordinance (No. 6)§

14.

[An amendment was made to the Law for the Amendment of the Municipal Corporations and Government Taxes (Exemptions) Ordinance (No. 6), 5752-1992]

Amendment of the Land Appreciation Tax Law – No. 23§

15.

[An amendment was made to the Land Appreciation Tax Law, 5723-1963]

Amendment of the Purchase Tax (Goods and Services) Law – No. 11§

16.

[An amendment was made to the Purchase Tax (Goods and Services) Law, 5712-1952]

Repeal of the Local Authorities (Property Tax Proceeds) Law§

17.

[The Local Authorities (Property Tax Proceeds) Law, 5735-1975 was repealed]

Amendment of the Local Councils Ordinance – No. 18§

18.

[Amendments were made to the Local Councils Ordinance]

Application and Transitional Provision§

19.
(a)The provisions of Section 9(b) and (c) shall apply from the financial year 1994; the remaining preceding provisions of this Chapter shall apply from the financial year 1993.
(b)Every council shall amend its decision regarding the imposition of general property tax for the financial year 1993 to the extent required for its adaptation to the Regulations under this Chapter.

Amendment of the Local Authorities (Appeal against General Property Tax Assessment) Law – No. 3§

20.
(a)[Amendments were made to the Local Authorities (Appeal against General Property Tax Assessment) Law, 5736-1976]
(b)This Section shall come into force on the 8th of Adar 5753 (1 March 1993).

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LawAdministrative LawTax Law

חוק הסדרים במשק המדינה (תיקוני חקיקה להשגת יעדי התקציב), תשנ"ג-1992

Economic Arrangements Law

Takenim Law

Budget Arrangements Law

Economic Arrangements 1992

Legislative Amendments Budget Targets

Seder Hamishek Law

Israeli Budget Law

Economic Measures Law

Takenim Tashnak