The council tax system in Wales faces a major shake-up under Welsh Assembly Government plans to revalue properties across the country.

Under the new proposals, even those in the cheapest houses in the poorest parts of Wales could face an annual increase of nearly �100.

The previous tax system fell into disrepute because people did not revalue Sandy Blair, WLGA

It is thought around a fifth of Wales' 1.3m households will have to pay more under the proposals, which come into force in April 2005, but some will end up paying less.

People who would definitely see a big hike in council tax are those in areas where prices have gone through the roof - a new tax band is proposed for anyone with a home worth more than �400,000.

Current bills are based on house valuations, which are around 12 years old.

The revaluation plans are still in their infancy and consultation is promised before they would take effect.

At the moment there are eight bands for council taxes.

Hot property: Price rises will be reflected

Band A covers properties worth up to �30,000, while Band D properties fall between �51,000 and �66,000.

Band H is for properties worth �286,000 or more.

The new proposals include the introduction of Band I which will take into account properties over �400,000 - and there will be a shift in prices in all the other bands.

The Tory group in the Welsh Assembly has warned that council tax payers are already set to pay extra to meet the cost of assembly government schemes such as free bus passes for pensioners.

North Wales AM David Jones said: "The result is likely to be double-figure percentage increases across many parts of Wales, where the average Band D Council Tax has risen by almost 30% since the inception of the National Assembly.

'Gimmicks'

"The truth is that Labour are making householders pay through the nose for what they consider to be eye-catching political gimmicks."

But Liberal Democrat AM Kirsty Williams said the Welsh Assembly Government is giving local councils more choice in how they spend their money.

She said: "When it comes to council tax rises, local authorities are going to have to take responsibility for these themselves.

"There is no room for them to blame the Assembly Government."

Sandy Blair, director of the Welsh Local Government Association, said Wales would not pay any more in council tax as a result of the revaluation, the burden would simply be redistributed.

He said: "It hasn't been revalued for 12 years, so lots of the values are out of date.

"The previous tax system fell into disrepute because people did not revalue."