The cost of spending a penny is likely to cost Snettisham Parish Council £1,000 in taxes.
The parish council has received a tax bill for the portable public toilet block, which is situated on private land in Beach Road.
Parish councillors bought the block two years ago following problems with people using the bins as a toilet.
The previous public toilet block was demolished in 2010 when a landowner decided not to renew the lease with West Norfolk Council.
Parish council chairman Eric Langford said: “We don’t charge for people to use it and we have had to buy it and service it.
“It costs a lot of money to provide that facility for the public.”
The council has been advised by West Norfolk Council to contact the Valuation Office Agency (VOA).
A VOA spokesman said: “The VOA sets the rateable value and treats all businesses equally, ensuring they pay their fair share of the overall business rates bill. Local councils calculate the bill based on the rateable value.
“We are unable to discuss individual cases for legal reasons.
“If the ratepayer thinks their rateable value does not reflect the rental value of the property they should contact us.”