The Western Jerusalem municipality demanded that a Vatican-owned hotel, the Notre Dame of Jerusalem Center, pay overdue city property taxes worth $5 million, and when it didn’t, it placed a lien on the institution’s bank accounts until it settles the payment.
Religious institutions in Israel are exempt from paying property tax. However, in recent years, Israel has sought to come to an agreement with the Vatican that would place Church-owned commercial enterprises — like hotels and coffee shops — under taxation.
