Complete and utter shyte. Talking out of their arse. They have absolutely no right to charge you or anyone else for taking photographs of anything unless a mutually agreed and specific contract has been entered into. Are they saying that all tourists to Dorset should be paying to take a photo? Do all the local and national papers? The local and national TV crews? Do architects scoping a project? Do estate agents advertising land and building for sale that have other buildings in the shot? There are so many reason why this is complete nonsense.
Ask them to provide the legislation that grants them that power. They won’t because they can’t. This sort of local authority little big man syndrome really gets on my thruppenies. Please post or message me the name of the person that told you this or pass to me the correspondence saying so.
Saying all that they can, if a specific bylaw applies, demand a slice of any commercial pie but the bylaw has to be specific to a property or piece of individual land, not the whole bloody county.
This may help
Taking photographs that you intend to use in some commercial sense
Being engaged in commercial photography.
There is a difference between restrictions on commercial photography and photographs for some business or commercial use.
Commercial photography implies being involved in the activities as a commercial photographer, this is likely to involve going to a place to make a commercial or run a shoot with models, stylists, and a pre-defined client. If none of the apply you are not involved in commercial photography. Check the yellow pages or internet sites of commercial photographers, to get a better understanding of the services they provide, its basically commissioned advertising photography.
A commercial photographer does not go out and take speculative photos to potentially sell to someone, to put on picture libraries, and/or publish themselves as art or decorative products. The nearest they might get to this would be a commissioned advertising calendar. So if the restriction is no commercial photography, and you have no client and team etc. then this restriction does not apply to you.
Commercial use is more difficult to define. If you don’t think your photographs are for commercial use then restrictions do not apply.
Often other statements are used and you will need to consider their meaning, in your opinion are they trying to stop you doing something that implies a film crew, commercial shoot or the like or are they trying to just stop you selling any images taken from their property. It may be that they are concerned about insurance cover and liability to them if someone was injured, in other cases it may be that they want to share in the proceeds of your work or create a monopoly of supply of images to their own benefit. In other cases they may be just trying to limit damage that can occur with large groups of people involved in commercial operations.
You have two choices, to make up your own mind, or to ask.
Some councils also have bylaws, that appears to be about cashing in on the right to grant access to film in some areas, the Royal Parks, Trafalgar Square and Parliament Square are examples of this, its not that you cannot make a commercial with loads of people, its just they want a very large fee for granting you the right.
Some other organisations and businesses may make a reasonable charge to cover the cost of a staff member to come with you and make sure that everything is done right without putting the public or others at risk.