Approximately $15,000 in license fees--an average of $150 perbusiness--is being refunded by the town, and letters are being sentto the remaining commercial property holders stating a license willnot be required. The fee extension would have generated anadditional $85,000 a year for the city.

The city finance department two months ago began notifyingcommercial property landlords that they now qualified as a businessunder the town ordinance and needed to apply for a businesslicense. The town code hadn't been changed, however, it was justbeing interpreted differently.

The council began to examine the matter after the town received25 phone calls and five visitors who questioning the legality ofthe move. Town attorney Orry Korb says the licensing requirement isconsistent with the town code. Others said it could easily be as anew business license tax. Council members sided with the latterinterpretation, saying that collecting rent does not qualify asemployment under Internal Revenue Service standards.