Redistributing Municipal Wealth in Israel: Reducing Inequalities in the Revenues of Local Authorities

Abstract:

This study analyzes options for redistributing revenues from local taxes and levies on non-residential real estate among local authorities, with the aim of reducing fiscal disparities among local authorities.

The study recommends considering the implementation of alternatives at the local and regional levels, with clearly defined limits on conditions that permit revenue redistribution without the consent of involved parties. Implications in the direction of strengthening local government or concentration of power in the hands of government ministries depends on the manner of implementation: imposition subject to restraint and clear constraints, in which the central state is considered to be a fair broker, or an arena for bitter conflicts and for controversial decisions that are largely motivated by the need to alleviate short-term fiscal problems of the central state.

Last updated on 12/29/2015

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