More than 90,000 home owners in higher-value properties across Tayside and Fife could be told to pay more council tax as part of a new SNP Government reform package.
Scots are being asked for their views as to increase the amount paid by people in who live in properties that fall into bands E, F, G and H.
Critics of the current system say those in the lower bands pay a higher proportion of the value of their property than those in the higher bands.
There are also concerns many families on tight budgets in new builds will be immediately dragged into paying higher bills.
Only around a quarter of properties across Scotland would be affected by the change, which would be phased in over three years.
Rates could rise by 22.5%
Rates for band E properties would increase by an average of 7.5%, while band F properties would see a 12.5% rise.
Those in band G properties would pay an average of 17.5% more each year, while band H properties would see their bills rise by up to 22.5%
Research by the The Courier indicates this would affect around 95,500 homes across Dundee, Fife, Angus and Perth & Kinross.
If put into place, changes would take affect at the start of the 2024-25 financial year.
The changes would raise extra cash for strapped council coffers for spending on local services.
In Fife, chargeable homes in bands E to H have the potential to generate just over £90 million at current rates.
But under the new proposals, this would increase by 19.5% to just under £108m based on the predicted average Scottish bill.
Dundee City Council would also enjoy an increase, with potential council tax receipts totalling around £23m – up from £20m currently.
‘Fairer’ Scots council tax system
Public Finance Minister Tom Arthur says the government had listened to calls to make the system fairer.
He is encouraging anyone with a view to take part in the consultation running from July 12.
He said: “The changes would only affect around a quarter of properties and even after they are taken into account, average council tax in Scotland would still be less than anywhere else in the UK.”
Mr Arthur says he understands many people are struggling financially, and pointed out the council tax reduction scheme would remain in place to support people regardless of which band their property falls in.
Scottish Conservative finance spokeswoman Liz Smith hit out at the “eye-watering hikes”.
Ms Smith, an MSP in Mid Scotland and Fife, said the government should provide fairer funding for local authorities instead of raising council tax.
She said: “These bombshell proposals from the SNP-Green government will terrify people struggling to cope with the global cost-of-living crisis.
“People across Scotland should not be bearing the brunt of filling the black hole in councils’ finances.”
