City, County May Do Battle Over Sales Tax

Ventura County officials and the city of Ventura may be gearing up for a fight over sales tax collections.

Ventura City Manager Donna Landeros on Friday recommended the city terminate a decades-old agreement that it turn over one-third of its sales tax revenue to the county.

Under her budget proposal, that portion of the sales tax--worth $572,000 this year--would instead go toward city street improvements.

Beleaguered county officials say the last thing they need now, while emerging from a fiscal crisis and trying to fend off a plan that would strip the county of its $260-million tobacco settlement, is to worry about cities backing out of revenue-sharing agreements.

“It’s just more trouble for us,” said county Chief Administrative Officer Harry Hufford.

Beginning in the 1950s, every city in the county agreed to share sales-tax collections with the county, Landeros stated in a letter accompanying her budget proposal. The cities agreed to turn over money because the county helps provide services used by city residents. Ojai pulled out of the agreement in 1972. Now Ventura wants to follow.

Hufford said backing out of the deal is unfair, because the county still must provide services to city residents and because the county’s growth laws encourage new development inside city boundaries, rather than unincorporated portions of the county, which brings more money to cities.

Assistant County Counsel Frank O. Sieh said Friday that his office disagrees with a state finding that allowed Ojai to back out of the agreement three decades ago, and the county is also opposed to Ventura’s plans. The county has yet to decide what course of action to take.

Landeros could not be reached for comment Friday. A hearing on the proposed budget is scheduled for May 22.