MEANDER Valley residents may see a 2 per cent rate increase next financial year if the Western Tiers is World Heritage- listed.
Federal Environment Minister Tony Burke last month asked the United Nations Educational, Scientific and Cultural Organisation's World Heritage committee to protect 170,000 hectares on the eastern edge of the South-West World Heritage area, including the Western Tiers.
The proposal is now being assessed by the committee in Paris.
Meander Valley Mayor Craig Perkins said the council stood to lose $165,000 a year in rates earned from Forestry Tasmania's production forests in the Western Tiers.
"If we take $165,000 of revenue out of the council, we will have to reduce our service level on other items or collect that back through increasing rates," Councillor Perkins said.
"It would be around a 1.5 to 2 per cent increase to capture that lost income, on top of whatever rate increase we may want to consider in our budgeting next (financial) year."
The council will make a rates decision at its June meeting.