The Jerusalem Municipal Authority has moved to “freeze” all bank accounts belonging to the Greek Orthodox Patriarchate of Jerusalem, according to reports by associates of Patriarch Theophilus III cited by the Times of Israel.

“On Wednesday, August 6, the Jerusalem municipality unilaterally decided to unilaterally freeze the bank account of the Greek Orthodox Patriarchate of Jerusalem. In our view, the reason for this decision is related to the issue of Arnona,” the Israeli property tax, the statement said.

The dispute between the Jerusalem municipality and several churches that own real estate in the area has been ongoing for several years.

An agreement decades ago between the churches and the State of Israel had prevented the Jerusalem municipality from collecting property tax from Christian organizations.

However, in 2018, the city decided that the exemption for churches applies only to properties used “for prayer, for the teaching of religion or for needs arising from it” – excluding activities that cater to pilgrims, such as guesthouses and cafes – and began seeking to collect tens of millions of shekels in bills.

At the time, then-Mayor Nir Barkat froze the bank accounts of several churches in Jerusalem, which closed the iconic Church of the Holy Sepulchre for three days in protest. The municipality only relented after the intervention of Benjamin Netanyahu. Since then, tensions between the municipality and church authorities have flared up several times over specific properties or activities.

“As religious institutions, the churches play a vital role in maintaining educational, social and charitable institutions that serve the local population, whether Christian or not,” reads the statement from Patriarch Theophilus of Hierosumon’s group, which is also working with the heads of other churches in the city.

“For this reason, historically, churches have never paid municipal or state taxes on church properties, whether under Ottoman, British, Jordanian or Israeli rule.”

According to the organization Protecting Christians of the Holy Land, the Orthodox Patriarchate of Jerusalem is no longer able to pay the salaries of its clergy, teachers and staff.