Jerusalem mayor using international organizations in budget dispute with Finance Ministry.
Jerusalem enjoys an annual “capital grant” from the [Israeli Finance Ministry] that helps it offset low tax revenue due to large populations with relatively high percentages that are not part of the taxpaying workforce, including roughly a third of the city’s population that is made up of ultra-Orthodox Jews and another third of Palestinian Arabs.
The Jerusalem municipality has handed out fines totaling millions of dollars to properties owned by the United Nations and by churches, citing a new legal opinion that says the properties are not legally defined as places of worship and therefore aren’t entitled to exemptions from property tax.
The step appeared to be an escalation of a dispute between the municipality and the Finance Ministry over funds. Mayor Nir Barkat has been conducting a high-profile campaign against Finance Minister Moshe Kahlon that included instructing workers to dump trash at the entrance to the ministry offices in Jerusalem and threatening to lay off more than 2,000 city employees.