Owners of second homes in North Yorkshire, who currently pay double council tax on their additional property, have called for the policy to be suspended.
The 100% premium was introduced in April last year by North Yorkshire Council, following concerns about a lack of housing for local people.
According to the authority, the scheme could raise £12m a year, all of which would be ring-fenced for housing projects.
Members of Second Homeowners Opposed to Unfair Taxation (SHOUT) delivered a petition signed by 1,000 people to the council on Friday, calling for a halt to the policy until a full assessment and consultation is carried out.
The Local Democracy Reporting Service said SHOUT, which was founded in Filey, now has 150 members from across the county.
The group claims the council failed to consult second homeowners and other affected groups before introducing the policy.
Chris Hall, who organised the petition, said: “Its effects have been disastrous – without any tangible benefits to local housing needs – this being evident from the drop in second-home prices, with a knock-on effect on all property prices.”
SHOUT also argued the additional council tax had reduced spending in local communities, with owners of cafés, bars, restaurants and shops among those signing the petition after experiencing a decline in trade.
The petition calls on North Yorkshire Council to refund the additional council tax paid by second homeowners during the 2025/26 and 2026/27 financial years.