When an 80-year-old West Side homeowner received a bill this week for an unpopular "occupancy tax" that was repealed three decades ago after a near-revolt by city residents, he thought the notice might be an error.

It was no mistake.

The city mailed bills this week to 2,994 property owners informing them that they owe money

for a fee that was imposed in 1976, then abolished after only a year.

More than 100 calls poured into City Hall's complaint line from angry or befuddled people.

St. James Place resident David Lambe found some humor in the bill he received for $10, plus

$40 in interest — or 1 percent per month for 400 months.

"It's only 34 years. What the heck," Lambe said.

But Lambe's son-in-law wasn't as good-natured about the surprise bill.

"They're ambushing the residents of the City of Buffalo," Kenneth Rine said. "This is

totally ridiculous."

Back in 1976, the occupancy tax was branded by some as "notorious." Thousands of people

refused to pay what they believed was an illegal tax. Some Common Council members were

defeated, and the furor was viewed as one reason why then-Mayor Stanley Makowski opted not to

seek re-election.

A lawsuit over the tax dragged on for years, culminating in a court upholding its legality.

For three decades, the city opted not to send out collection notices, choosing instead to

collect the tax as properties were sold to new owners or refinanced. The unpaid tax becomes a

lien on properties that must be settled before a sale occurs or a new mortgage is approved.

But city officials said Friday that the tax office has been converting to a new computer

system. Transferring thousands of delinquent accounts to the new system would have taken a lot

of time and money, officials said. A decision was made to send out notices.

People who don't pay the fees will have their accounts sent to a collection agency by early

summer.

Mayor Byron W. Brown was just as surprised by the action as the people who received the

notices, his communications director insisted.

"The mayor was not informed that the bills were being prepared and mailed," said Peter K.

Cutler. "He has directed [city attorneys] to look at every option available to mitigate the

cost of these bills. He wants to leave no stone unturned."

But the city's top legal adviser told The Buffalo News on Friday nothing can be done.

Acting Corporation Counsel David Rodriguez said the occupancy tax was upheld in court.

"If you have a tax on the books, you have to collect the tax," said Rodriguez. "We can't

waive it. It's law."

The tax was only in effect for one year before beleaguered city leaders wiped it off the

books. The levy ranged from $8 to $12 a year per unit, depending on the size of the residence.

The notice sent to property owners reads as follows: "... You are hereby notified that the

1976 Occupancy Tax, as itemized herein, remains unpaid, and if not paid on or before May 31,

2010, will be added as a delinquent accounts receivable invoice and subject to additional

collection fees."

"It's stupid," said Niagara Council Member David A. Rivera, of the decision to change

collection policies and mail bills for a city tax that dates to an era when Gerald Ford was

president and "Happy Days" was in its television heyday.

Rivera said he plans on talking with fellow Council members to see if there are strategies

that can be taken to eliminate or reduce the outstanding balances.

"It's just not fair to send people bills for a tax that was imposed in the '70s," he said.

One option city officials are reviewing is whether some or all of the penalties and

interest charges could be waived.

By 4:30 p.m. Friday, the city's Office of Citizen Services had logged more than 100 phone

calls. Director Oswaldo Mestre Jr. said many of the callers were senior citizens.

"They were a little stunned to get the notices," he said. "We've been trying to explain the

occupancy tax, and letting them know that the city is looking into ways to deal with the

issue."