The state local governments in Victoria believe that universities, private schools, and solar and wind farms should pay council rates instead of receiving exemptions.
The councils argue the exemptions - laid out in state law - are unfair as such organisations no longer serve just the local community.
The Municipal Association of Victoria has made the proposal in a submission to the state government's rates review, and has stressed that some are competing in statewide, national and international markets which means everyday rate-payers are subsiding their commercial activities.