A sharp dispute has broken out between the Tel Aviv Municipality and the Tel Aviv Great Synagogue in Allenby Street in the city. The municipality intends to cancel the exemption from arnona (local property tax) that the synagogue has enjoyed since it was built.
In a letter to the president of the Great Synagogue, Yitzhak Ne'eman, Eli Malachi, director of arnona at the Tel Aviv Municipality, states that the municipalities ordinance sets out criteria for recognizing an institution as exempt from paying arnona. One of the criteria relating to synagogues is that no commercial activity should take place on the premises. "From information in the possession of the municipality it emerges that a business by the name of 'Rega'im Lerega'im Hayafim Baderech' operates on the premises, so that in practice the property also serves as an events hall for holding weddings, barmitzvas and so forth, so that the activity taking place there is of a commercial nature and for financial gain," Malachi claims in his letter. "Furthermore," he writes, "since the activity that takes place at the premises competes with the activity of other businesses in this area, giving an exemption for the property in question amounts to positive discrimination in comparison with those other businesses."
For its part, the Great Synagogue claims that no events are held at the synagogue, but only religious ceremonies within the restrictions that the municipality itself specified in order that activities could be held at the synagogue without the issue of an events hall license. Among the restrictions are that the activity should bear a religious character, that the number of participants should not exceed the synagogue's capacity, and that no dancing should take place and no music should be played other than background music.
Adv. Assaf Oselka, who represents the Great Synagogue, argues in addition that the synagogue does not collect payment for the ceremonies held in it, but only the production company that manages them, and that the synagogue is permitted to receive donations only. An appeal lodged by Oselka on behalf of the Great Synagogue states that the synagogue has been active at the site for 80 years, and in all that time has never been charged arnona under the provisions of the municipalities ordinance applying to synagogues in Israel. The appeal also argues that the synagogue has no source of income besides donations and cannot sustain an expense of NIS 1 million a year for arnona. "On average, two weddings take place in the synagogue per month, so that even from the point of view of main use it cannot be argued that holding weddings represents the synagogue's activity," the appeal states.
Published by Globes [online], Israel business news - www.globes-online.com - on January 9, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013