In recent months, tensions have been simmering between the Armenian Patriarchate of Jerusalem and the city’s municipal authorities.
The latest point of contention? The “Arnona tax” — a property tax imposed on landowners in Jerusalem, now causing a significant rift between the Patriarchate and the municipality.
The dispute, which began two years ago, flared up again in February.
The municipality has demanded that the Armenian Patriarchate pay a hefty sum of around $5.7 million.
This ongoing battle over property taxes is causing much concern among Jerusalem’s Christian communities, and the situation remains unresolved.
The Arnona Tax: The Issue That Keeps Coming Back
The conflict first emerged two years ago and has resurfaced recently, after a court hearing was scheduled over a significant debt of 21 million shekels (approximately $5.7 million).
The Patriarchate is facing the threat of foreclosure on some of its properties in Jerusalem due to this alleged debt.
Bishop Koryoun Baghdasaryan, who heads the real estate department of the Armenian Patriarchate, explained that the tax demands came shortly after he took over his position on January 11, 2023.
He received notices just 12 days after his appointment, informing him that the execution bureau would start foreclosure proceedings unless the debt was paid.
A Dispute Over Property and Unpaid Rent
Some of the properties in question are located in West Jerusalem, including along Shlomziyon and Jaffa Streets, which the municipality rents.
According to Baghdasaryan, the municipality owes over 10 million shekels for rent on properties next to the municipal complex.
The Armenian Patriarchate hasn’t received payment for these properties since 2017, and rather than pursuing legal action, they attempted to resolve the matter through negotiations.
Legal Action and Delays: A Step Toward Resolving the Dispute
In response to the foreclosure threat, the Armenian Patriarchate filed a petition to the district court, arguing that the tax claims were unjustified.
They pointed out that some properties were leased to the municipality, and some properties listed in the tax claims had never belonged to the Patriarchate.
The court granted an interim order to halt the foreclosure, while the hearings regarding the tax dispute were repeatedly delayed.
In February, a new hearing was scheduled, reviving the case once again.
Concerns From Christian Leaders in Jerusalem
The ongoing legal and financial tensions have drawn the attention of Christian leaders in Jerusalem.
The Patriarchs and Heads of Churches in the city have issued a statement expressing their deep concern over the matter.
They warned that these actions could set a dangerous precedent, not just for the Armenian Patriarchate, but for all Christian institutions in the Holy Land.
“This reckless move,” the leaders wrote, “jeopardizes the Orthodox Armenian Patriarchate and could lead to further harm for Christian institutions throughout the region.”
A History of Tensions Over Taxes in Jerusalem
This isn’t the first time that Christian communities in Jerusalem have faced tax-related issues.
In 2018, the municipality sent similar Arnona tax demands to various Christian institutions.
The situation escalated quickly, leading to the closure of the Holy Sepulchre Basilica in a historic act of protest.
The Israeli Prime Minister, Benjamin Netanyahu, intervened, and a governmental committee was established to address the issue, though progress was slow due to the COVID-19 pandemic.
Baghdasaryan noted that the Armenian Patriarchate now hopes to return to the governmental committee to negotiate a resolution and avoid further conflict.
The Patriarchate’s Response to the Tax Demands
The tax demands against the Armenian Patriarchate in 2023 are viewed as a direct challenge to its status and could have far-reaching implications for Christian institutions in Jerusalem. Historically, Christian organizations in the city have been exempt from such taxes because of the social services they provide to the local community, including schools, hospitals, and charitable aid.
This exemption has been respected through various periods of governance, including the Ottoman Empire, the British Mandate, and early years of the State of Israel.
For the Armenian Patriarchate, the demand for taxes on their properties represents a shift away from this longstanding understanding.
Baghdasaryan emphasized that the Patriarchate and other Christian institutions should not face the threat of property seizure given their historical and ongoing contributions to the community.
Managing Properties to Safeguard the Future
In an effort to protect their assets, the Armenian Patriarchate has implemented new measures to safeguard its properties.
These include limiting lease agreements to a maximum of 49 years and ensuring that building leases don’t exceed 24 years and 11 months.
Baghdasaryan believes these policies will help reduce the risk of future legal battles and maintain the Patriarchate’s property holdings.
A Community United in Concern
The Armenian community in Jerusalem, numbering around 3,000 in the Armenian Quarter and 8,000 throughout the Holy Land, remains vigilant about the outcome of this dispute.
The resolution of this case could have profound effects on the future of Christian institutions in Jerusalem and their ability to maintain a presence in the Holy Land.
Setrag Balian, a fourth-generation Armenian Jerusalemite and co-founder of “Save the ArQ,” a group dedicated to advocating for the Armenian Quarter, shared his concerns about the tax issue.
He doesn’t view it as an outright attack, but rather as a form of pressure being applied to Christian institutions in the area.
A Turning Point for Christian Institutions in Jerusalem?
The situation remains at a standstill, but tensions are high, and the impact on Christian communities in Jerusalem could be profound.
The Armenian Patriarchate, along with other Christian institutions, is determined to protect its rights and preserve its historical role in the city.
The outcome of this ongoing dispute could set an important precedent for Christian institutions in the Holy Land for years to come.