Due to the continued war with Iran, and in order to improve the process of assisting residents whose homes were damaged and deemed uninhabitable, the Director General of the Ministry of Finance, Ilan Rom, the Chairman of the Federation of Local Authorities, Haim Bibas, and the Director of the Tax Authority, Shay Aharonovich, decided to expand the existing procedure. This procedure allows local authorities to place residents whose homes were damaged by acts of war in hotels and receive reimbursement from the Israel Tax Authority’s Compensation Fund for the evacuation expenses. The maximum period of hotel accommodation has now been extended from 7 days to 14 days.

According to the procedure, A local authority employee from the engineering department who has been authorized by the head of the authority may determine that a home is uninhabitable based on the criteria detailed in the Property Tax Law (mainly structural damage to the building’s frame, foundations, or supporting walls, and damage to water supply, electricity, or sewage systems that cannot be repaired within 24 hours), and may evacuate the residents to a hotel. The Compensation Fund of the Tax Authority will Compensate the local authority for the evacuation costs.
During the initial evacuation period, if it is not possible to return to the damaged home, the claimant must file a direct damage claim and indicate therein the need for alternative housing. From the end of the evacuation period onward, alternative housing will be funded directly by the Compensation Fund. This may take the form of hotel accommodation, rental reimbursement, or a monthly grant of  4,000 NIS for those staying with relatives.

The updated procedure also states that seven days after the evacuation, the local authority will submit a reimbursement form to the Compensation Fund, which will transfer payment for the initial 7-day evacuation period, along with a 90% advance payment for the remaining 7 days. Additionally, the procedure clarifies that blast damage resulting in the destruction of a large number of windows will also be recognized as rendering a home uninhabitable.

Minister of Finance, Bezalel Smotrich: “The decision to decentralize responsibility for evacuating residents and to grant the local authorities the authority and tools to act was the right and necessary one, and it continues to prove itself during this time as well. The updated procedure we are presenting today is part of a broader approach that emphasizes flexibility, rapid response, and adaptation to needs on the  field. As I told the heads of local authorities, the State of Israel stands behind them and will continue to provide full financial backing for their efforts on behalf of their residents. The Israel Tax Authority and the local authorities are working in full partnership, with dedication and professionalism, and I thank each and every employee on the field. We will continue to accompany the process, update it, and improve it constantly – to ensure a quick, accurate, and appropriate response for the citizens of Israel.”

Director General of the Ministry of Finance, Ilan Rom: « This decision reflects our strong confidence in local authorities and our commitment to providing a rapid and effective response to citizens, tailored to their needs. We are maintaining ongoing communication with local authorities to identify needs and provide assistance wherever possible, especially given the evolving circumstances and their many implications. I thank all those involved in the joint efforts between the Ministry of Finance and local government, and I appreciate the employees who are stepping up and working day and night to assist and provide a sense of certainty for affected citizens. »

Haim Bibas, Chairman of the Local Government Center: « Due to the sustained security situation, we have taken steps to ensure a rapid and effective response for residents whose homes were damaged by missile fire from Iran. The expansion of the procedure, which we led together with the Ministry of Finance and the Israel Tax Authority, to enable residents to evacuate to a hotel for up to 14 days, is a significant step toward ensuring residents’ well-being and our ability to provide them with immediate assistance, relief, and a sense of security during these difficult times. We listened to what was happening on the ground and ensured that every resident whose home was damaged and rendered uninhabitable would be eligible for hotel evacuation. The heads of local authorities are in the field, deeply familiar with the needs of their communities at every moment. In cooperation with government ministries, we will continue to deliver a swift and professional response to every resident in need. »

Tax Authority Director, Shay Aharonovich: « I would like to thank the Director General of the Ministry of Finance and the Chairman of the Local Government Center for their partnership in formulating this important procedure, which enables a faster and more efficient response to the needs of the population affected by the missile strikes from Iran. The Compensation Fund’s employees are working day and night to provide the best possible assistance. However, at the end of the day, nothing can replace the local authorities’ familiarity with their residents and their ability to deliver an immediate and effective response. At this time, the key to addressing the challenges we face lies in deepening and streamlining the collaboration between central and local government. »

Autorité fiscale israélienne

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