Israeli Finance Minister Moshe Kahlon (Kulanu) refused to accept the judges'suggestions or to change the law taxing owners of three or more apartments.
On Sunday, the Israeli government told the Supreme Court that Kahlon weighed their suggestions but refused them, because of the impact they would have on the housing market.
The Israeli government also believes the law presents legal issues which do not allow the Knesset to agree to it.
In a statement, the government said that the Supreme Court's decision was discussed with the Finance Minister. However, the Finance Minister takes issue with the court's opinion, especially, he claims, after considering the ramifications he feels cancelling the law would have on the housing market.
There has already been a change for the positive, with less Israelis each month buying homes for the purpose of renting them out, the statement continued. In addition, the price of housing has begun to decline.
According to the statement, cancelling the law would entail a complex legal process, and only the Knesset has the right to cancel laws; the Supreme Court does not. This statement, if accepted, might have ramifications on the many laws, unrelated to housing, that have cancelled by the courts.
"Taking the Supreme Court's suggestion would entail cancelling a law which has already been passed," the statement said. "It is difficult to cancel a law if there is no solid legal evidence of issues with the way it was passed."