Court Orders Kiryat Ata to Revise Property Tax Rate for Nursery

The Haifa District Court has ordered the municipality of Kiryat Ata to revise its property tax (Arnona) decree, ruling that a specific rate set for a nursery was unreasonable and discriminatory. The nursery's annual tax bill had surged from NIS 31,000 to NIS 4.85 million within a single year.

The nursery, Meshelot Shafir Ltd., occupies a large area of approximately 98,000 square meters that was previously under the jurisdiction of the Mateh Asher Regional Council. Following border changes implemented by the Ministry of Interior, the land was transferred to Kiryat Ata.

The municipality designated the annexed areas as "Zone 40" in its property tax decree, setting a rate of NIS 49 per square meter for nurseries and greenhouses in this zone. This contrasted sharply with the approximately NIS 20 per square meter charged to businesses with the same classification in other parts of the city.

Kiryat Ata argued that the operation constituted "industrial agriculture" and that classifying it as a "greenhouse/nursery" was actually a concession, as an industrial classification would have resulted in an even higher rate. The nursery contended that the rate was exorbitant and violated the municipality's commitment to maintain existing tax rates for annexed agricultural lands.

Presiding Judge Tamar Neot Younger dismissed the claim of a broken commitment regarding agricultural land rates but accepted the nursery's petition concerning the specific rate. She determined that the 250% difference between Zone 40 and other areas was unreasonable, unjustified, and discriminatory, stating the rate appeared "almost personal" and designed to fit the specific nursery. The court ordered the cancellation of the Zone 40 rate, mandated the municipality to amend its decree, and ordered Kiryat Ata to pay NIS 10,000 in expenses.