Stephanie Booth, 60, who is the fourth wife of Mrs Blair’s father Tony Booth, accepted that she had taken the bin and disposed of it but denied that she had taken it dishonesty.
Booth, the mayoress of Todmorden, West Yorkshire, and a Labour councillor, appeared at Calderdale Magistrates’ Court wearing a grey coat and black dress to deny the theft charge.
The court was told that there had been a neighbourly dispute between her and David Morgan, who both live in Robinwood Terrace, Todmorden.
Prosecutor Mr Richard Davies said that there had been a disagreement about who owned a piece of land.
He added that Booth had asked Mr Morgan to move a tub containing either sand or rock salt which was blocking her property.
But Booth claims that Mr Morgan had moved the tub back, and thus she put it in her car and disposed of it.
Mr Davies said: “The defendant says the complainant keeps moving the tub. The defendant said if he doesn’t move it she will.
“She accepts taking the tub and disposing of it. The question is whether it is dishonest.”
The court was told that the alleged offence happened on December 4 2014.
On Booth’s own admission, she accepted disposing of the tub at the tip.
Defending, Mr Malcolm Nowell said that the facts of the case were accepted and the question was the dishonesty.
Chairman of the bench Mr Jan Mosalski granted her unconditional bail to appear for trial at Leeds Magistrates’ Court on October 29.
Mr Mosalski told her: “If you fail to attend on that day you could find yourself in serious trouble.”