diff --git a/src/Counters.h b/src/Counters.h
index 16f1d98184..3384e564c6 100644
--- a/src/Counters.h
+++ b/src/Counters.h
@@ -117,8 +117,8 @@ public:
 	/// counter(s) for which it is the master.
 	/// Sub-slaves are not zeroed! That happens at slave's first 
 	/// step 0->1. Seems to be sufficient.
-	/// \param for_output: whether to track the counters
-	void step(docstring const & ctr, UpdateType = InternalUpdate);
+	/// \param utype determines whether we track the counters.
+	void step(docstring const & ctr, UpdateType utype);
 	/// Reset all counters.
 	void reset();
 	/// Reset counters matched by match string.
diff --git a/src/sgml.cpp b/src/sgml.cpp
index f895287195..985478498a 100644
--- a/src/sgml.cpp
+++ b/src/sgml.cpp
@@ -220,10 +220,12 @@ void sgml::openTag(Buffer const & buf, odocstream & os,
 		if (param.find('#') != string::npos) {
 			// FIXME UNICODE
 			if (!style.counter.empty())
-				// NOTE This could use OutputUpdate and track the counters.
-				counters.step(style.counter);
+				// This uses InternalUpdate at the moment becuase sgml output
+				// does not do anything with tracked counters, and it would need
+				// to track layouts if it did want to use them.
+				counters.step(style.counter, InternalUpdate);
 			else
-				counters.step(from_ascii(name));
+				counters.step(from_ascii(name), InternalUpdate);
 			int i = counters.value(from_ascii(name));
 			attribute = subst(param, "#", convert<string>(i));
 		} else {