Parish councils could have thousands of pounds of support stripped away.
Kirklees Council is considering scrapping subsidies that allow parish councils free rent and utility bills.
The move could save Kirklees’ tax payers £100,000.
But residents living in Kirklees’ five parish council areas may be hit with higher precepts to make up for the loss of income.
Householders in those areas pay a second precept ranging between £5 and £60 per year on top of their council tax.
Cash strapped Kirklees has now said it will seek to “recharge” parish councils for their rent and bills on council owned properties.
If the proposals go ahead then Holme Valley Parish Council would be charged £27,840 a year. Meltham Town Council would be liable for £17,632 and both Denby Dale and Mirfield would be billed £14,848.
Kirkburton Parish Council, which operates from privately owned Burton Village Hall, would no longer have its £4,077 lease paid by Kirklees.
Clr Graham Tuner, Cabinet Member for Resources said: “We acknowledge the parish and town councils play an important part in the local democratic process and are continually working on ways to make sure that we look at ways to work together for the people of Kirklees.
“However, town and parish Councils are only found in a small number of areas around Kirklees, and only provide services for their own communities.
“At this time of austerity we must ensure that our scarce resources are made available to benefit the residents of Kirklees as a whole, ensuring we can deliver essential services to the most vulnerable people in our society.”
But senior Tory and Mirfield Town councillor, Martyn Bolt, has hit back saying the council would not need to “punish” town and parish councils if it “managed its business properly”.
Kirklees recently admitted it had written off more than £850,000 of the £1.4m it is owed by house building firms.
Clr Bolt said if the move was approved, parish councils would either have to raise their precepts or cut their support to communities.
And he indicated there could be a legal challenge over which council buildings belonged to Kirklees and which to town councils.
“Kirklees are being rather punitive to town and parish councils,” said Clr Bolt.
“They’re not held in high esteem by the cabinet.
“It would be about another £2.50 for every household if we had to pay this charge. It would be a very difficult choice.”
Clr Bolt said Mirfield Town Council was no further with its proposed asset transfer of Mirfield’s council offices, first mooted last January, as Kirklees had not progressed the matter.
“We’ve not yet seen a report on what’s wrong with the building,” he said.“It would be foolish to take it on without seeing what kind of neglected state it’s been left in by Kirklees.”
An asset transfer of Skelmanthorpe Council Offices to Denby Dale Parish Council has already been agreed.
Meltham’s Carlile Institute has also been handed over by Kirklees to the community and will be used by the town council.
Talks are also underway regarding a potential asset transfer of Holmfirth Civic Hall, used by the parish council for public meetings.
If the proposals to recharge the town and parish councils are agreed by cabinet members they will come into force from April 1, 2016.