An end to the council tax freeze in Fife could earn the region only £1 million but cost taxpayers up to £92 more each, the region’s councillors have heard.
A 3% increase on households’ bills would raise around £4.4m.
However, the local authority would lose the £3.4m it is paid by the Scottish Government for implementing the freeze.
Council tax bills would rise by £25.59 for disabled people in band A properties and £92.12 for those in the most expensive band H homes.
Councillors were told of the impact of ending the freeze as they debated options for reforming local taxation.
They were also told of the implications of reforming council tax, which would involve the revaluation of 173,000 properties in the kingdom and potentially more than 3,000 appeal hearings, and a reformed property tax.
As the Commission for Local Tax Reform considers alternatives to council tax, Fife Council’s finance and corporate services policy advisory group investigated the two options.
A report by revenue services manager Les Robertson revealed that 50% of all homes in Fife were in the lowest two council bands and only 486 were in the highest council band.
The group’s findings were presented to the executive committee and group member Councillor Altany Craik recommended that a property tax should be the preferred option, claiming it was the fairest method and maintained democratic accountability.
However, no consensus was reached but councillors agreed to use the data collected for the basis of future debate.
Mr Robertson said it was likely to be the 2020s before council tax is replaced and in the meantime careful consideration was needed to review the agreement with the Scottish Government over the council tax freeze.