WATERFORD – Acting on a ruling by the Oxford County commissioners and an advisory town meeting vote, selectmen Monday night voted to stop the illegal practice of placing a 25 percent surcharge on commercial properties.

Now the board must find a way to make up for the approximately $17,000 annual loss in revenue taxes, selectmen’s Chairman John Bell said Tuesday.

“It has to be compensated for,” said Bell, who was not a member of the board when the practice was in place. A tax committee was approved Monday night to look at the impact and how to recoup any tax losses. Bell said those abatements on file will be compensated, but he does not believe payments will be made retroactive.

Although Selectman David Marston made a motion to repeal the tax in January, fellow selectmen, including Norman Rust, refused to second the motion, and no action was taken. Since that time, the board has been informed by the county commissioners that the surcharge was unconstitutional.

Rust, who was on the board when the illegal tax was imposed, refused to comment Tuesday. “I’m not answering any questions,” he said briskly. When asked why not, he said, “Because he’s the chairman,” referring to Bell.

Bell said he has made no request nor is there any policy in place that mandates all comments to the media be made through the chairman.

Ricki Hall, co-owner of Bear Mountain Inn on Route 35 and a proponent of a town meeting article to repeal the tax, said the tax had been unevenly applied to properties. Hall, who was unavailable for comment Tuesday, said the tax was an excessive burden on some businesses.

Selectmen agreed Monday that her abatement application, which had been before the Oxford County commissioners, would be approved.