Business Licenses for all members?

I run a coworking space for wellness professionals, mostly counselors. We have hourly members as well as full-time. Our municipality has required that each member obtain a business license which also requires a site inspection, regardless of whether they are a drop in member seeing 1 client a week in the space or full-time. They have collected over $10,000 over the last five years from our members paying for licenses and site inspections. Additionally, this has meant many hours wasted on continuously having the town building inspector inspect the same space over and over and over. Has anyone else dealt with this? I am starting to wonder what would happen if we just left it up to each member to decide whether or not to apply for a business license. If they don’t, is it really our responsibility?