Luxury Israeli Hotel Sues Over Property Tax for Hosting Evacuees

The Isrotel hotel chain has filed a petition with the Beersheba District Court, challenging the Mitzpe Ramon Local Council's property tax assessment for its Beresheet Hotel. The hotel is seeking a reduction in the municipal tax (arnona) for the period it housed families evacuated from northern Israel due to the ongoing conflict. The hotel argues that during this time, its facilities were used as basic housing, with guests cooking their own meals, children and pets present in common areas, and the hotel functioning more like a residential complex than a luxury establishment.

The Beresheet Hotel hosted evacuees from the Gaza border communities and the northern border region starting from the war's outbreak. It only resumed accepting regular guests in February 2024. The hotel contends that for approximately five months, the local council should have levied taxes at a residential rate instead of the commercial hotel rate. The municipal appeals committee rejected the hotel's request, stating that requests for tax relief or compensation should be directed to the government, not local authorities. The committee noted that the local council was already providing services to evacuees, including educational and psychological support.

In its appeal, the hotel emphasized its pride in assisting Israel during a difficult time, contrasting its actions with other hotels that declined to host evacuees. The Ministry of Tourism did provide compensation for housing evacuees, but the Beresheet Hotel claims these funds did not cover its usual revenue. The hotel also accused the Mitzpe Ramon Local Council, which is reportedly facing financial difficulties, of expecting full arnona payments as if during peacetime.

Asher Pinto, the hotel's general director, described the Beresheet as Israel's most luxurious hotel and stated its complete dedication to supporting the state. He detailed how the hotel's spaces were repurposed for evacuee needs, including lobbies for gatherings, function rooms as kindergartens, and outdoor tents as classrooms. Pinto also mentioned the presence of scooters and strollers, and activities like wine workshops and yoga, underscoring that the hotel was not operating as its usual luxury establishment.

The hotel's appeal further elaborated that common areas were repurposed for evacuee support staff, regular rooms became classrooms and therapy offices, and the hotel exclusively hosted evacuees during this period. Despite these arguments, the Mitzpe Ramon Local Council maintained its decision to tax the hotel at the standard hotel rate.