Supervisors OK Business License Tax Over Protests : Finances: The fee will affect unincorporated areas starting July 1. Supervisor Maria VanderKolk opposes plan.

Despite strong protests from several residents and business owners, the Board of Supervisors gave final approval Tuesday to a new license tax for businesses in the county’s unincorporated areas.

The license tax, which will be based on a company’s gross sales and profit margins and is expected to generate at least $500,000 annually, was approved on a 4-1 vote, with Supervisor Maria VanderKolk opposing it.

“I don’t feel comfortable passing a tax at this time,” she said. “The economy is not in good shape and people are really hurting.”

During more than an hour of testimony, several business owners said the fee would be a blow to businesses already affected by the state’s five-year drought, a recent winter freeze and continuing uncertainty over the economy.

“How can you approve a half-million dollars more in taxes for this county?” asked Ruth Johnson, a resident who attended the meeting holding a placard and wearing a label on her blouse that read: “No new taxes.”

“Private enterprise should be free to do its thing,” she added.

However, several supervisors said the county is justified in adopting the fee because all 10 cities in the county already charge a business license fee.

“No one likes to approve a tax,” Supervisor John K. Flynn said.

Supervisor Vicky Howard said the county is facing an estimated $13-million deficit next year and has few other options but to adopt the fee.

“If there is any fat in the budget, we will try to find it,” she said.

Because of the recent hardship imposed by the drought and the winter freeze, Supervisor Maggie Erickson Kildee said the county will exempt farmers and ranchers from the license fee.

However, the county will impose a fee on companies that conduct business in the unincorporated area but are based in one of the 10 cities.

The fee, which will be imposed beginning July 1, is based on a three-tier system. Businesses in the first tier, which includes manufacturing, wholesale and retail trade, public utilities and transportation, will pay 50 cents for every $1,000 in annual gross receipts.

Companies in the second tier, including contractors and businesses involved in rental property, personal and business services, will pay $1 for every $1,000 in annual gross receipts.

Businesses in the third tier, including professional services, will pay $1.50 for every $1,000 in annual gross receipts.

Businesses were separated into the three tiers based on the profit margin that they are expected to have, according to county officials.

A state Senate bill adopted last year gives counties the authority to impose a business license fee for the first time.

County officials estimate that it will cost about $110,000 to operate the license collection program and pay the salaries of two full-time staff members.

Two weeks ago, county staff proposed a similar license fee plan that would have required twice as many staff positions. But the plan was modified to require only two positions.

Although the license fee will not be imposed on farmers, Rex Laird, executive director of the Ventura County Farm Bureau, said the fee would hurt the fruit-packing industry, which farmers rely upon.

“The goose that laid the golden egg is killable,” he said.

However, Kathy King, a senior administrative analyst for the county, said fruit-packing companies would be assessed a fee based only on their handling charges and not on the value of the fruit.