During last year's local government election campaign Cr Tate said his administration would not contribute to carbon pricing.
Again in January this year Cr Tate said the council would not pay Prime Minister Julia Gillard's controversial tax.
However, yesterday the mayor conceded the council could not get out of paying the $5 million expected bill.
Ratepayers will feel the pain with council bureaucrats anticipating a 1 per cent increase to the average household rates notice to cover the tax, at a cost of $30.
It is understood Cr Tate did not expect the Gillard government would still be in power before July 1 this year with Opposition Leader Tony Abbott determined to repeal the carbon tax legislation. However, repealing of the legislation is unlikely to occur before 2015 or 2016 when the Greens-controlled Senate is up for re-election.
A spokesman for Climate Change Minister Greg Combet said Cr Tate had misled ratepayers.
"It is now clear that Tom Tate was misleading ratepayers when he claimed council would not meet its carbon price liability," he said.
"The Gillard government expected the carbon price to have a modest impact on council rates.
"The carbon price has been in place for nearly nine months with none of the adverse impacts predicted by Cr Tate."
Cr Tate, an LNP member, said the payment of the tax would be noted on rates bills.
"Paying the tax is not a backflip as we will do everything it takes to make sure ratepayers are not burdened with this and will make a strong case to an incoming Coalition government that the money be refunded," he said.
"During this year's budget discussions we will do everything we can to find savings elsewhere but this will cause rates to go up.
"If a refund is not possible then at least we will only have to bear it for one year. The council will provide a list of fees and charges, include those enforced by the Federal Government, so ratepayers can understand how much they are contributing."
Councils were exempt from paying for carbon during the 2012-13 financial year.
Cr Tate's anti-carbon tax stance attracted criticism in January when a statement explaining his position was mailed to 240,000 households with January's rates notices.
Mr Combet's spokesman said carbon pollution from electricity generated for the National Electricity Market fell by 8.6 per cent in the last six months of 2012.
A price on carbon was introduced on July 1 last year.
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