Catholic rights center fights Arnona hikes imposed on Palestinian communities: Jerusalem Municipality Continues the “Arnona War”: Cancellation of Category “D” and Tax Increase on 14 Palestinian Neighborhoods.
According to the Arnona property tax law applied by the Jerusalem Municipality, residential properties are divided into four zones: Zone (A) is the most expensive, while Zone (D) is the least.
Recent data clearly indicates that the municipality is moving toward abolishing this gradation and gradually raising the Arnona tax, effectively unifying the tariff at the highest category, without regard for economic disparities or the level of municipal services.
At the beginning of 2025, Zone (A) classification will be imposed on all new apartments completed or registered in the Arnona records after January 1, 2020, across all neighborhoods of Jerusalem, including marginalized areas located behind the Annexation Wall.
By this decision, Arnona in these neighborhoods was equated with that of affluent West Jerusalem areas such as Rehavia, Talbiya, Ein Kerem, and others—despite the vast differences in infrastructure and services.
In this context, it should be noted that the St. Yves Catholic Center for Human Rights filed a preliminary petition against the Jerusalem Municipality and the Ministers of Interior and Finance (High Court of Justice Case No. 25-08-35357), demanding the cancellation of the “new apartments” classification. The case is still under consideration before the Israeli court.
For 2026, the municipality is requesting approval of an additional and profound change affecting buildings constructed before January 1, 2020, by abolishing Zone (D) and merging it with Zone (C).
This change covers 14 neighborhoods or parts thereof, including:
- The Old City within the walls.
- Kafr Aqab.
- Qalandia–Atarot.
- Ar-Ram–Atarot.
- Anata.
- Sur Baher.
- Jabal al-Mukabber.
- Beit Safafa–Sharafat.
- Tantur.
- Parcels of land and built‑up areas adjacent to Beit Sahour, Bethlehem, Beit Jala, and Abu Dis that were included within the expanded municipal boundary of Jerusalem after 1967.
Apartments larger than 120 m²: 91.08 shekels per square meter instead of 74.46 shekels — an increase of 22.3%.
Apartments smaller than 120 m²: 64.24 shekels per square meter instead of 46.35 shekels — an increase of 38.6%.
According to the municipality’s own data, abolishing Zone (D) will affect 22,683 residential apartments across the city.
This amendment alone is expected to generate an additional 31 million shekels annually in Arnona tax revenue.
In recent months, the municipality has launched an unprecedented campaign to register buildings in neighborhoods located behind the Annexation Wall in the Arnona records, recently extending to Shu’fat refugee camp.
This step signals a clear intention to expand registration to all Palestinian neighborhoods behind the Annexation Wall.
The St. Yves institution affirms that it will continue to oppose these policies, which directly and unjustly harm the most marginalized Jerusalem neighborhoods that have long suffered from deliberate neglect and severe shortages in municipal services.
If the decision to abolish Zone (D) is approved, the institution will file a new preliminary petition against this unjust measure, which completely ignores the absence of services and imposes unjustified tax burdens on Jerusalem’s most vulnerable residents.
St. Yves (The Catholic Center for Human Rights) is both a legal defense organization and a moral voice, combining courtroom litigation with grassroots empowerment and international advocacy.
It plays a critical role in contesting policies like residency revocations, demolitions, and tax hikes that deepen inequality in Jerusalem.
