City Considers 45% Rise in Business Tax

For 24 years, business owners in this city have had one unchanging regular expense: the cost of their license to operate in Thousand Oaks.

Not only do the rates predate disco, they are the lowest in Ventura County.

Now, acting on a recommendation from a citizens’ committee, the Thousand Oaks City Council is considering upping the business tax by 45%, an increase that would put an estimated $438,000 more in city coffers annually. Last year the city made $1.1 million from the licensing fee.

The council will discuss the issue Tuesday and vote on whether it should be put on the March ballot. Because of a recent California Supreme Court ruling, voters have final say over the tax increase.

In September, the high court upheld the constitutionality of Proposition 62, a 1986 ballot measure restricting local governments from raising taxes without voter approval.

Reaction to the proposed increase from local business owners is mixed; some are flatly opposed, but many say they would not object as long as the funds are put to good use.

“If they want to raise it because they need to do it to survive, then I’m not against it,” said diamond merchant Eli Tamir, who owns the Diamond Connection in Newbury Park. “If they are going to use it to get more police, then I’m for it.”

Councilman Andy Fox said he intends to funnel the money toward the hiring of two more police officers and extending library hours.

“I think people are willing to pay their fair share if they think they are getting something for their money,” Fox said. “If we need more and want more of these services, we need to identify a revenue source to support them.”

Technically, the money cannot be earmarked on the ballot for any particular use, but Fox said the council can pass a resolution directing where the funds should be used.

The Conejo Valley Chamber of Commerce supports the concept, though Judy St. John, chairwoman of the chamber’s board of directors, said her board needs to revisit the issue. Before the September state Supreme Court ruling, Fox had solicited--and won--the chamber’s backing for a council vote on the matter.

“[Council members] had indicated that they would use those funds for public safety,” St. John said. “And the increase seemed to be so insignificant . . . the trade-off seemed to be worth it.”

But for florist Patti Ruff, who has owned and operated Oakbrook Florist and Gifts for 15 years, the 45% increase would be a burden.

“The small-business owner works very, very hard and hardly gets any money for it,” Ruff said. “I think they should tax somebody else, like the rich people.”

The idea germinated with the Community Budget Task Force, which made the recommendation to the council in July. Members of the committee reviewed the cost of licensing a business in Thousand Oaks and found the city’s rates to be lagging far behind the rest of the county.

For a company that has business receipts of $90,000 to $105,000, Thousand Oaks charges an annual fee of $50. But in Oxnard, the same business would be charged $144, in Ventura, $78, and in Camarillo, $70.

“It’s probably time to at least look at it because it hasn’t changed in such a long time,” said Dennis Carlson, a member of the task force and a local businessman.

“And it is a great bargain. Nobody wants their taxes raised,” he added. “But I think this one is probably as innocuous as they go.”