The unit will share intelligence with police elsewhere who investigate similar attacks.
"Price tag" is used to describe random acts of violence against Palestinians and their property, allegedly by Jewish extremists. About 80 percent of the incidents occur in the West Bank and another 10 to 15 percent in Jerusalem, Haaretz reported Wednesday.
This week, the tires of 21 cars in the East Jerusalem neighborhood of Beit Hanina were slashed and the vandals scrawled graffiti on a wall.
About 30 police officers have joined the new unit, with an additional 50 expected to join by the end of the year, Haaretz said.