Town staff will take a second look at laser-component manufacturer Kigre, Inc.'s business license fee and issue a new assessment within 10 days following an appeal hearing Tuesday.
Hilton Head Island Town Council voted unanimously to order the review.
Once the review is completed, the town's financial department will issue a new assessment for Kigre.
The company has been fighting the town business license ordinance since a 2006 suit was brought by the town to collect more than $41,000 in unpaid fees and penalties for the tax years 2002-05.
Last month, the town told Kigre it owed about $318,500 in unpaid fees and penalties for the tax years 2007-12. The firm paid the amount under protest and filed an appeal May 17.
Tom Taylor, an attorney for Kigre, presented tax documents on Tuesday he said would show the company was overcharged. Kigre previously had not provided such detailed financial information, which will not be released publicly.
Without that information, staff has assessed the company's gross revenues at $20 million annually since 2007, an amount Taylor called "a ridiculously high number."
Town financial director Susan Simmons said the finance department based its estimate on websites including www.salesfuel.com and www.fuelspending.org, and the financial documents of some of Kigre's competitors.
Jeff Meyers, the company's chief operating officer, said he has little faith in town staff.
"I don't want to deal with these guys anymore," he said during a break in the meeting. "Town staff is terrible. They make things up as they go."
Myers said he relocated the company's sales office to Savannah this winter, saying that city was "much more business-friendly."
In Savannah, companies pay business license fees based only on business done within the state, according to the city's revenue department.
On Hilton Head, the fees are based on all sales.
Kigre officials argue the town ordinance should not apply to its national and international sales, which make up most of the company's business.
The firm has been disputing the legality of the ordinance for years. However, a Feb. 7, 2012, decision by Beaufort County Master in Equity Marvin Dukes III struck down Kigre's claim that the nearly 30-year-old ordinance is illegal.
Taylor said Kigre filed an appeal of that decision to the state Court of Appeals in October.