A long-standing dispute over municipal property taxes has reignited between Jerusalem city authorities and Churches, prompting Palestinian Authority President Mahmoud Abbas to appeal to Pope Leo XIV and other international leaders. Christian leaders warn that the application of Israel’s Arnona property tax to their institutions could threaten the future of their charitable and religious missions in the region.
The Mytilene Agreements and Historic Tax Exemptions
The core of the conflict rests on the interpretation of historical privileges. According to Bishop William Shomali, Auxiliary Bishop of the Latin Patriarchate of Jerusalem, the churches rely on the Mytilene Agreements of 1901. Bishop Shomali states that these agreements established tax exemptions that were respected during the British Mandate and by Israel following its 1948 independence. He maintains that these provisions have never been officially repealed. The Palestinian Authority, which views East Jerusalem as occupied territory, disputes Israel’s legal authority to levy taxes on these properties, citing both the need to uphold these historic privileges and the political status of the area.
Distinguishing Between Commercial and Charitable Activities
Bishop Shomali emphasizes that a resolution depends on defining the boundary between the church’s pastoral mission and its business operations. The current uncertainty creates potential for significant financial strain; the bishop notes that if the municipality moved to retroactively apply the Arnona tax to for-profit activities, the total claims could reach a few million euros. Church leaders advocate for a compromise where for-profit entities contribute to municipal charges while institutions dedicated to worship, education, healthcare, and social services retain their traditional exemptions. This distinction, according to the bishop, is the primary challenge in reaching a balanced agreement.
Context of Regional Instability
This tax standoff arrives during a period of heightened economic and social pressure for Christian communities in the Holy Land. Bishop Shomali reports that families are currently struggling with the consequences of regional conflict, economic crisis, and a lack of employment opportunities. The dispute echoes previous tensions; in 2018, church leaders took the step of closing the doors of the Holy Sepulchre in protest. While the bishop notes that President Abbas’s intervention brings the issue to the forefront of international attention, he acknowledges that such appeals do not inherently possess the force required to impose an immediate solution. Support from organizations like Aid to the Church in Need (ACN) remains a vital source of aid for vulnerable families as the churches continue to navigate the current climate.
