The Government's floods recovery minister John Healey has promised families who are still out of their homes after last summer's flooding they will not be hit with council tax bills.
Councils have been able to offer council tax exemptions to households unable to live in their own homes, but these exemptions are only allowed for one year.
In an announcement expected tomorrow, Mr Healey will tell councils they can use extra discretionary discounts of up to 100 per cent.
Across Oxfordshire, there are an estimated 231 households still living in temporary accommodation nearly a year after they were forced to leave their homes.
Devastating floods hit the county in July.
The worst hit areas of the county were west Oxford - particularly homes on Osney Island and parts of Botley Road - west Oxfordshire and in Vale of the White Horse.
Mr Healey will promise the Government will provide financial support to ensure council taxpayers are not unfairly affected.
The latest figures show that around 4,700 households across the UK are still not fully back home and are living in caravans or other temporary accommodation.
And if all 4,700 were to stay out of their homes for another year, they would be forced to pay more than £3million in council tax in this period.
Mr Healey said: "Real progress is being made getting families back home following last summers floods.
"One in six of those still out a month ago are now home.
"Everyone is pulling out all the stops to make sure this momentum continues.
'But for the most badly affected it will take more time.
"So it would not be fair for them to pay council tax for homes they cant live in.
"That is why I am pointing out to councils they have the discretion to grant council tax discounts to their flood-hit residents still out of their homes.
"And I am also promising the Government will provide funding for this so other taxpayers are not unfairly affected.
"This is a special step in recognition of these special circumstances."
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