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Municipal property tax in the corona era

13.12.20 | 10:05  

 Useful tips for contending with the municipal property tax burden during the corona period

  1. Make sure to extend the deadline:
  • If you are planning to submit an objection for the fiscal year 2020, contact the relevant local authority as soon as possible and request an extension of the deadline for submitting an objection until the end of the corona crisis.
  • Before making this request, it is advisable to first consult the official website of the local authority in question, as it may have already announced in advance the granting of an extension in these circumstances, and published it to the taxpayers coming under its jurisdiction.
  • If you have decided to appeal the decision of the Municipal Property Tax Director on an objection which you received before the corona crisis, you must submit a deadline extension request to the Municipal Property Tax Appeal Committee next to the local authority in question as soon as possible. Should it not be possible to obtain approval from the Appeal Committee, ask for confirmation from the Municipal Property Tax Director that he shall not claim that there was a delay in filing the appeal.
  1. Check whether any municipal property tax payment dispensations have actually already been approved in the areas of the relevant local authority, which you would like to take advantage of:
  • The Ministry of the Interior has recommended to the local authorities that they defer payment of municipal property tax for business owners until 1.5.2020. Many local authorities have decided to adopt this recommendation, and some have even decided to approve additional reliefs, such as the cancellation of interest for this period.
  • We therefore strongly advise you to check whether the local authority within the jurisdiction of which the property in your possession is located has postponed the date for payment of municipal property tax as aforesaid, and upon what terms, and act accordingly.
  1. Act to reduce the municipal property tax payments for the property in your possession in other ways:
  • It is advisable to consult with a lawyer who specializes in municipal taxation, in order to examine concrete options for reducing municipal property tax payments in the event of the business closing or its activity being reduced due to the corona crisis, such as:  requesting a full exemption from payment of municipal property tax or a reclassification of the property to a category having a "cheaper" tariff that the tariff charged in the current category.

We shall be happy to be at your disposal to answer any question or provide any clarification on the subject, having regard to the characteristics of the specific property in your possession and the circumstances of the case.