Palestinian President urges Jerusalem churches to reject Israeli 'Arnona' tax

Palestinian President Mahmoud Abbas has urged churches and Christian institutions in occupied East Jerusalem to refuse Israeli demands for municipal property tax payments, warning that compliance would threaten the city's historic Christian presence and undermine its legal status under international law. Abbas dispatched letters to Pope Leo XIV, Jordan's King Abdullah II, French President Emmanuel Macron, Russian President Vladimir Putin and UN Secretary-General Antonio Guterres regarding the dispute over "Arnona" — the Israeli municipal tax levied on real estate based on size, location and use — describing the collection efforts as "a blatant and unprecedented violation" of Jerusalem's standing arrangements, according to the Palestinian news agency WAFA.

Warning against compliance

Abbas described attempts to impose the levy on church properties as "a direct attack on the Christian presence and religious institutions," stressing that the international community recognizes East Jerusalem as Palestinian territory occupied since 1967. "We call on the churches not to accept these unilateral measures or enter into any arrangements with the (Israeli) occupying authorities concerning them, given the risks they pose to the legal status of the city and the bilateral agreements in force," Abbas said.

The Palestinian president noted that UN Security Council resolutions consider Israeli measures aimed at changing the city's character or legal status "null and void," while telling King Abdullah that Jordan's Hashemite custodianship over holy sites remains vital and commending Pope Leo XIV for the Holy See's recognition of the State of Palestine. Abbas added that Israel's actions do not grant it sovereignty or jurisdiction over East Jerusalem's Islamic and Christian religious endowments.

Tax dispute and status quo

The dispute centers on "Arnona," which Palestinians in East Jerusalem also refer to as the "area tax," with church leaders arguing that expanding collection efforts beyond longstanding status quo exemptions for religious properties threatens their ability to finance social services. While Israeli municipal authorities argue the tax applies only to properties not directly used for worship — such as commercial buildings and offices — church leaders counter that seeking retroactive payments violates historical arrangements.

Palestinian officials warn that complying with Israeli municipal procedures could be interpreted as recognition of Israeli jurisdiction over the occupied city. Church authorities maintain that the threatened institutions include schools, hospitals and charitable facilities essential to maintaining the Christian presence in Jerusalem.

Historical precedent

In February 2018, the Jerusalem municipality announced plans to collect hundreds of millions of shekels in alleged unpaid taxes from church-owned properties, prompting church leaders to close the Church of the Holy Sepulchre for three days in protest before Israel suspended the measure and established a committee to examine the issue. The dispute has resurfaced in recent years as municipal authorities renewed demands for payment, with church leaders warning that continued enforcement could threaten educational, health care and charitable institutions while placing additional pressure on the Christian presence in the city.