Originally published by the Yesha Council, myesha.org.il, translated by Hillel Fendel
The municipal authorities in Judea and Samaria (Yesha) are seeing a significant rise in total income from local taxes on businesses, factories and industry. In addition, more private property tax is being paid as increasingly more people come to live in Yesha.
This indicates a tremendous jump in commerce and industry, an increasing demand for these areas, and a jump in economic activity.
Here are some numbers: Israel's Central Bureau of Statistics says that property taxes in Yesha grew by 80% between 2010 and 2019 – more than in any other district in the country during that period. For instance, in the south it grew by 59%, in the north by 58%, and by 56% in central Israel.
In terms of cities, Yesha's 80% growth rate can be compared with Jerusalem's 45%, Haifa's 42%, and Tel Aviv's 40%.
If we divide property taxes into residential and commercial, then Yesha leads, by a wide margin, all six of the above regions and districts in both categories!
Let's first consider residential property tax payments: The rate of increase during 2010-2019 was only 44% in the Tel Aviv district - compared to a whopping 77% in Judea and Samaria! (The average throughout the country was 54%).
At the same time, the increase in the non-residential property tax bills over the cited decade ranged from 34% in the Haifa district, all the way up to 85% in the Judea and Samaria district! (The average throughout the country was 46%.)
Two complementary reasons have been cited to explain why Yesha's property tax collection has risen so dramatically: One is the increase in people moving in to Yesha, which means of course more taxable residential properties, and the other is the increase in property tax rates.
The first reason is particularly poignant. The population of Israel altogether rose nicely during the decade in question – but in Yesha, it rose by an amazing 48%!! The total in 2019 was 454,000, up from approximately 300,000. (Today it is nearing 490,000; these numbers do not include the neighborhoods of Jerusalem whose areas were liberated in the 1967 Six Day War.)
By way of comparison, the Tel Aviv and Haifa districts rose during the decade in question by 13%...
Commercial Growth
The more people, the more commerce. And so, quite naturally, commercial property taxes in Yesha also jumped startlingly during the decade in question. This is the result of three complementary factors: increased area designated for commercial properties, the type of property assessed for the tax, and an increase in property tax prices.
Let's take the first factor. Properties in Yesha designated for non-residential use jumped by over a third – less than half the rate of increase in the southern district, but 6% more than in the central region.
This is an interesting statistic, because it actually dropped a bit in the Tel Aviv and Haifa regions, and rose by just 2.7% in the north. This shows that these last three districts did not show genuine employment development; at best, the situation remained as it was or saw new facilities replacing old ones. In this light, it is clear that the increase of between 34% and 54% in commercial property tax collection throughout the country means that the price of the tax increased significantly.
Largely because of the massive development of the Shomron's Barkan Industrial Area between Ariel and Rosh HaAyin, non-residential property tax in Yesha jumped in the year 2019 to 202 million NIS, not including another 482 million NIS in residential property taxes.
Economic Peace
These numbers are quite surprising to many people, who have been flooded with reports in recent years of threats to boycott enterprises located in Judea and Samaria, that is, beyond the 1967 Green Line. The announcement by Ben & Jerry's that it plans to stop selling its tasty ice cream in Judea and Samaria at the end of 2022 received the most attention, but other companies as well have given in to pressure and threats by the BDS anti-Israel organization.
The Yesha Council, the umbrella organization of municipal councils of Jewish towns in Judea and Samaria, is engaged in an ongoing public relations campaign entitled "The Economic Peace." The idea behind it is that, contrary to international popular perception, Jews and Arabs in Yesha cooperate on an economic level, and that this is the basis for de-facto peace between the two peoples.
The Yesha Council has aired the fact that no fewer than 30,000 residents of the Palestinian Authority-controlled areas work in Jewish-owned industrial and agricultural concerns – some of them as managers and foremen. These employees generally earn double or more of what the average PA wage-earner brings home. This of course benefits tens of thousands of Arab families in the PA, improving the standard of living and quality of life of hundreds of thousands of people – leading, as a most natural outgrowth, to a measure of stability and security in the entire area.
The Council's campaign has not only encouraged people to see a more genuine picture of life in Judea and Samaria, but has encouraged international companies to put their money where their eyes are!
The area designated for industry and the like in Yesha grew by 183%, totaling 2.364 million square meters (close to 600 acres) in 2019. This brought in 80 million NIS in taxes, compared to 37 million ten years earlier. The second-largest increase in the country during this period was only 25%, in the southern district, and in Haifa the area designated for industry fell by over 31%.
In sum, these and other similar statistics show the important economic development taking place in Judea, Samaria and the Jordan Valley. These areas are undergoing accelerated growth in terms of population increase – especially among young couples – and in increased demand for areas for business and industry.
Investors and entrepreneurs who have identified the potential have in fact successfully invested in various fields in Yesha. No question about it: there is still room for others who wish to follow them!
For more information, contact the Yesha Council here: http://myesha.org.il/?CategoryID=20&ArticleID=1&SourceID=20&sng=1