Dartmouth's Business Improvement District row has risen to a new level as angry town councillor and businessman Dave Cawley has declared he has no intention of paying what he has condemned as a 'tourist tax'.

Mr Cawley has accused South Hams Council of wrongly sending out bills for the business rate payments which are due as a direct result of last year's business community vote to set up the town as a BID.

He has warned that he is prepared to go to court to contest his £150 bill. And he declared: 'I didn't vote for it. I don't want it and I shouldn't have to pay for it.'

And he added: 'I am absolutely not going to pay this. I shall go to court and I shall take with me a solicitor or a barrister and I shall seek damages for the distress that it has caused me.'

Mr Cawley has launched his latest attack on South Hams Council which he claims is acting as a 'factoring agent' for the BID team over his outstanding invoice and is effectively demanding payment for 'unsolicited goods or services'.

And he has told the council: 'Wouldn't it be better for South Hams District Council to help and support local businesses, rather than to threaten us over goods and services that we did not order, we did not agree to and we have not received?'

The council's admin team leader Sonia Powell has written back to Mr Crawley, explaining: 'To answer your question, South Hams Dist­rict Council are acting as administrators as per Schedule 4 of The Business Improvement Districts (England) Regulations 2004, not factoring agents.

'Our agreement with Dart­mouth BID Ltd demands that we send out invoices and undertake recovery procedures for all sums due from businesses which fall in the BID area.

'All invoices are issued in the name of Dartmouth Bid Ltd and state that South Hams District Council act only as the collecting agent.'

The ongoing row over BID business rate payments has been rumbling on and on since the town was declared a business improvement district and the first bills went out.

Mr Cawley claims only 18 per cent of businesses eligible to vote over the BID actually supported the project while many did not vote at all because they did not realise what it would mean.

He said his business selling high-end hi-fi equipment all over the globe was not affected by the tourism trade, and added; 'I don't care what the process was but I do care for the businesses of Dartmouth, most of which didn't vote and had no idea what was going to happen or didn't think it was going to affect them.'

Meanwhile, BID spokes­man Francesca Johnson hit back at his claims, saying: 'I suggest that Mr Cawley seeks legal advice immediately, as his interpretation of the law is totally incorrect.'

'Gaining possession of accurate facts would prevent him from wasting any more of his time, and South Hams' resources, while ensuring that he does not risk incurring additional costs for late payment.

'The BID has spoken with many business owners since the latest reminder letters went out and we acknowledge that some confusion still existed about the BID.

'We are, pleased, however, that after explaining the BID legislation – which was followed correctly during the campaign and ballot – and how the levy is classed as a tax which has no right of appeal, we have been able to reassure these callers and get their payments processed.

'We are also delighted to see new people joining us as board directors, associate members and working group representatives as support for the BID continues to grow.

'It is unfortunate that, as is so often the case with any new initiative, the silent majority continue to work hard for the good of the town while the vocal minority continue to complain – but the BID is making great progress and a further update on our 2015 plans will be issued very soon.'