The Welsh Government has launched a consultation on tax levies on second homes after the issue “provoked strong feelings in parts of Wales”, including in Ceredigion where councillors are considering levying a 100 per cent tax to combat the issue.

The Welsh Government consultation on council tax and non-domestic rates is part of a summer of action launched by climate change minister Julie James last month to “address the impact of second home ownership seen in some of Wales’ communities”.

The consultation will seek views on the maximum level at which local authorities can set council tax premiums on second homes and long-term empty properties and the criteria for a property to be defined as non?domestic, self-catering accommodation.

Wales is still the only UK nation to give local authorities the power to introduce a 100 per cent council tax premium on both second homes and long-term empty homes.

Earlier this year, the Cambrian News reported that Ceredigion ranks fourth in Wales for the number of holiday homes in the county, and that committee had recommended introducing a 100 per cent council tax premium on second homes.

The levy currently stands at 25 per cent in Ceredigion.

A total of 2,125 properties in the county are listed as second homes or holiday lets – 1,726 subject to council tax plus a 25 per cent premium and 399 paying non-domestic rates.

This equates to around six per cent of all dwellings in the county, putting Ceredigion at fourth highest across Wales.

The highest percentage of holiday homes was in New Quay, at 26 per cent or 206 properties.

The next highest was Penbryn at 12 per cent or 138 properties, and then Borth with 11 per cent or 122 properties.

The additional income from second home levies can be used to address issues affecting the supply of affordable housing or for the provision of public services and other facilities such as public transport.

The consultation will also seek views on the circumstances in which properties are classed as self-catering businesses and are listed for non-domestic rates.

Finance and local government Minister Rebecca Evans said: “We want to hear from people living in communities affected by these issues as well as owners of second homes and holiday lets, trade representatives of the tourism industry, and local authorities.”

Climate change minister Julie James said: “We cherish our reputation in Wales as a welcoming, bilingual society in which tourism and current second home owners have a contribution to make.

“However we also recognise the impact that higher numbers of second homes and self-catered holiday lets can have on local housing and rental markets and on the sustainability of local communities.

“In some areas they may compromise the sustainability of Welsh as a community language.”

The consultation runs until 17 November.