Thousand Oaks Seeks Bigger Share of Taxes Collected on Car Leases : Revenues: City Council supports a state bill that would send money from such deals to municipality where they were brokered.

Thousand Oaks council members argued for months before letting the city’s auto mall erect its electronic sign along the Ventura Freeway to lure passing motorists.

So now that out-of-town car shoppers are pulling off the freeway, Thousand Oaks officials want to be sure shoppers bring tax dollars with them.

That’s why the City Council has lent its support to a bill submitted last week to the state Legislature that would send taxes from vehicle-lease agreements to the city where the agreements are brokered.

Currently, cities can take a 1% cut from any vehicle that is sold by a local dealer. But when a vehicle is leased, the money is pooled and distributed across the county.

Ventura County cities with auto malls are getting a smaller portion of the taxes than they deserve, said state Sen. Cathie Wright, R-Simi Valley, the bill’s sponsor.

“These are the cities that feel the impacts of an auto mall,” Wright said. “If they are spending the money and using the services to bring car shoppers into their city, they should also be getting the benefits.”

Thousand Oaks officials certainly agree. Tuesday night, the City Council announced it would support the bill, and a city-paid lobbyist will be following the bill’s progress as it moves through the Legislature.

Because of Thousand Oaks’ large auto mall, and the high volume of leasing business done there, the measure could bring an added $500,000 in tax revenue to the city, officials said.

“We’re getting the traffic, we’re getting the smog, we’re using the space, so the returns should definitely be sent back to us,” explained Thousand Oaks Councilwoman Elois Zeanah. “It just seems that would be fair.”

Officials in other cities with auto dealerships, such as Oxnard, Ventura and Simi Valley agree.

Simi Valley, for example, could land an added $200,000 in tax dollars, officials there said.

“It’s an issue of equity,” said Mike Sedell, Simi Valley’s assistant city manager. “The cities with no car dealerships are benefiting, while cities like Simi Valley and Thousand Oaks are not getting their share.”

Wright said she introduced the legislation now because there has been such a sharp increase in the number of cars being leased.

According to Robert Nesen, owner of the Thousand Oaks Auto Mall, more than 60% of the Cadillacs that leave his lot are leased, not sold outright. And an even higher percentage of the Lexus and Infiniti automobiles are leased, he said.

“Leasing has become very popular,” Nesen said. “And I never dreamed the city was not getting the taxes. We want our business to support our city.”

In addition to the cities, several area business groups are supporting the legislation.

The Conejo Valley Chamber of Commerce spent months researching the issue, said executive director Steve Rubenstein.

“We’re not only pushing this from Thousand Oaks,” Rubenstein said. “We’re calling other cities around the state, trying to convince them to support this bill as well.”

“This is something that will benefit any city that has an auto mall or a large number of dealerships.”

Wright said she expects the legislation will be heard by the state Senate sometime in late March or early April.