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Assessing the Perceived Fairness of a Property Tax by a Taxpayer Survey: The Case of Residential Arnona Tax in Israel

Author

Listed:
  • Mintz Mordekhay

    (School of Environmental Sciences, University of Haifa, Haifa, Israel)

  • Portnov Boris A.

    (School of Environmental Sciences, University of Haifa, Haifa, Israel)

Abstract

Understanding taxpayer perceptions of a property tax system is essential for developing equitable and transparent fiscal policies that foster public trust. This study explores public attitudes toward Israel’s residential property tax system, also known as Arnona, through an online survey of more than 500 participants, stratified by region of residence, age, income, family status, and homeownership. Although the survey participants were divided regarding the preferred basis for property taxation – a property value - (ad valorem) vs. property size (Arnona) based system, the majority of respondents (~55%) favored the current system, and ~45% supported its value-based alternative. The survey also revealed a wide support for integrating environmental factors into tax assessments, with approximately 75.9% of the survey respondents supporting the idea of incorporating green space access into property tax assessments, and 62.8% of the survey respondents supporting accounting for air quality. Support was even stronger for service-related criteria, with 91.3% of participants supporting the idea of linking the tax rates to the quality of municipal services. However, substantial differences emerged regarding the incorporation of the socioeconomic status of taxpayers into tax calculations. Although 59% of low-income respondents favored this idea, only 33% of highincome respondents supported it. In general, the study underscores the growing public demand for tax models that reflect environmental quality and quality of services, rather than linking property taxes to incomes.

Suggested Citation

  • Mintz Mordekhay & Portnov Boris A., 2026. "Assessing the Perceived Fairness of a Property Tax by a Taxpayer Survey: The Case of Residential Arnona Tax in Israel," Real Estate Management and Valuation, Sciendo, vol. 34(1), pages 84-96.
    • Handle: RePEc:vrs:remava:v:34:y:2026:i:1:p:84-96:n:1007
    DOI: 10.2478/remav-2026-0007
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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