Controversial laws restricting the sale of Aboriginal art at Todd Mall in Alice Springs are set to be overhauled and the price of permits will be drastically reduced.

While some say the new laws will be great for tourism and are a win for the artists, others say they are offensive.

The Alice Springs Town Council is endorsing a proposal to reduce the price of a permit to sell paintings on the Uniting Church lawns from $205 a day to $200 a year.

But proposed conditions to be attached to the permit have been criticised, including one suggesting that artists have been urinating in inappropriate areas.

Alderman Melanie van Haaren told a council committee meeting last night it is an offensive assumption.

The council said it surveyed eight Todd Mall gallery owners and five of them were in support of the new permit system.