Yes, you will get the 25% discount. I came on a work permit and always received it. Though you do have to remember to send the form in. The UK never really had a state/federal divide, but one way to think of council taxes is that it's like state/municipal ones. And you pay these for things like trash collection, etc. Coming to the UK seems like its a barrel of confusing regulations, but, trust me, after you're here, they'll start to make sense almost intuitively, just like the regs at home.