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Parish or village councils need funds to support their activities. These funds are raised by adding an extra cost known as a "precept" to each householder's Council Tax bill. Parishes are collectively known as “local precepting authorities”. This means they have the power to raise a precept on properties in their area in order to finance the functions that they perform. Parish precepts are included separately on council tax bills and are collected by the billing authority on behalf of the parish.