Israeli Hotel Sues for Lower Property Tax After Hosting Displaced Residents
Translated & summarized from Ynet by baba
Beresheet Hotel is suing the Mitzpe Ramon Local Council for lower property taxes, arguing its status changed from a luxury hotel to a basic residential facility for evacuees after October 7th. The hotel hosted displaced residents for about five months, during which it claims operations were significantly scaled back and common areas repurposed. The local council rejected the hotel's appeal, suggesting compensation should come from the government, and continues to demand hotel-rate taxes. The hotel's owner has appealed to the district court, emphasizing their contribution to national aid.
The story in 6 lines · by baba
- Beresheet Hotel is suing Mitzpe Ramo for residential property tax rates instead of hotel rates for hosting evacuees.
- The hotel claims its operations became basic, with guests in pajamas and common areas repurposed for evacuee needs.
- The local council rejected the appeal, suggesting compensation should be sought from the government.
- Isrotel Hotels, the owner, argues the luxury hotel prioritized national aid over its usual business.
- The hotel received compensation from the Ministry of Tourism, but claims it was insufficient.
- The Mitzpe Ramon council is reportedly facing financial difficulties.
Beresheet Hotel has filed an appeal with the Beersheba District Court against the local council of Mitzpe Ramon, demanding to be charged residential property tax rates instead of hotel rates for the period it hosted residents displaced by the October 7th conflict. The hotel argues that during this time, its operations were basic, with families cooking their own meals, guests wandering the lobby in pajamas, and pets present. Common areas were repurposed, with the lobby becoming a gathering place and event halls used as classrooms and childcare facilities.
Following the outbreak of the war, many hotels across Israel housed evacuees. Beresheet Hotel accommodated residents from Gaza border communities and northern Israel, only resuming regular guest bookings in February 2024. The hotel contends that for approximately five months, the local council should have levied residential property taxes.
The Mitzpe Ramon Local Council's Appeals Committee rejected the request, suggesting that requests for tax relief or financial compensation should be directed to the government, not the local authority, which is already providing services like schools, kindergartens, and waste removal for the evacuees.
Isrotel Hotels, which owns Beresheet, has formally appealed the decision. The appeal highlights the hotel's pride in assisting the nation during a crisis, noting that some hotels refrained from participating due to potential damage. The appeal states that Beresheet, a luxury hotel, set aside its usual operations to support the displaced.
While the Ministry of Tourism provided compensation to hotels hosting evacuees, Beresheet claims the amount did not cover its usual revenue. The hotel also criticized the Mitzpe Ramon council, which is facing financial difficulties, for insisting on charging hotel rates during wartime. The appeal includes the protocol from the council's appeals committee. Asher Pinto, the General Manager of Beresheet Hotel, described the transformation, stating, "We weren't Beresheet Hotel, that's what I'm trying to say." He detailed how the lobby became a meeting point, halls turned into educational facilities, and even an outdoor tent served as a classroom, with evacuees bringing their own mobility scooters and baby equipment.
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