Israeli authorities froze all bank accounts of the Greek Orthodox Patriarchate in Jerusalem over a long-standing property tax dispute, escalating tensions with Christian institutions in the occupied city, local media said on Thursday, Anadolu reports.

A statement by Protecting Holy Land Christians, a group founded by Theophilos III, the Greek Orthodox Patriarch of Jerusalem, said the freeze has left the Patriarchate unable to pay salaries to clergy, teachers, and staff.

The Times of Israel news outlet said the freeze, enacted on Aug. 6, stems from the Jerusalem Municipality’s push to collect Arnona, a property tax, on church-owned properties used for non-religious purposes, such as guesthouses and coffee shops.

The municipality claimed that the measure followed “efforts at dialogue and engagement” that failed because the Patriarchate “ignored letters from the municipality demanding payment.”

“Administrative enforcement measures were taken against the Greek Patriarchate because it failed to settle its property tax debts for assets not used as houses of worship,” its spokesperson office said.

“This was done despite efforts at dialogue and engagement with them, and in light of their ignoring letters from the municipality demanding payment.”

A decades-long agreement had historically exempted churches from such taxes, but in 2018, the city narrowed the exemption to properties used solely for prayer, religious teaching, or related needs, seeking tens of millions of shekels in back taxes.

The dispute echoes a 2018 clash when then-mayor Nir Barkat froze church accounts, prompting a three-day closure of the Church of the Holy Sepulchre in protest. The municipality relented after intervention by Prime Minister Benjamin Netanyahu. Tensions have since flared periodically over specific properties and activities.