Fife Council is to double the rate of council tax paid by second home-owners.
There are 2,391 second homes in Fife, most of which are in the east of the region.
And the move is expected to bring in an additional £3.9 million for council coffers in the first year.
Some local authorities offer a 50% discount on council tax for second homes.
However, Fife Council has charged the full rate for several years.
It will change to a 200% charge from April, if draft legislation is passed by the Scottish Government.
Fife’s head of revenue and commercial services Les Robertson said the money raised would pay for council services.
Exemptions will apply to Fife double council tax bill
A second home is defined as a house that is not the owner’s main residence but is occupied for at least 25 days a year.
Mr Robertson added: “These houses are not available in either the sales or lettings markets in Fife.
“They are thus limiting the supply of houses in Fife, which has a housing crisis.”
Certain exemptions to the new rule will apply, including if the home is needed by the owner for work purposes.
However, the council will employ a new officer who will visit the second homes to ensure they are occupied.
It also expects to deal with a significant volume of appeals.
Claim ‘many owners will avoid the charge’
The new policy was unanimously approved by Fife Council’s cabinet committee this week.
It follows Perth and Kinross Council’s agreement of a similar move last month.
However, not all councillors are happy with the arrangement.
St Andrews Conservative member Robin Lawson says many owners will find a way to avoid the increased tax, making the scheme worthless.
But Mr Robertson said the policy had received public support during a consultation.
And he added: “The aim of the charging is to either have owners of second homes pay an additional levy to support local service provision or to encourage them to change the use of their second homes thus increasing the availability of much-needed housing in the Fife area.”
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