County Supervisors Back Proposed Business License Tax : Finances: The 4-1 vote gives preliminary approval to a plan expected to raise $500,000 from unincorporated areas.

Faced with an anticipated $13-million deficit, the County Board of Supervisors gave preliminary approval Tuesday to a new tax on businesses in unincorporated areas of the county.

In a 4-1 vote, the supervisors tentatively approved establishment of a business license tax that would net the county about $310,000 a year once administrative costs are deducted. The final hearing on the tax will be March 12.

The board unanimously decided not to impose a separate $70 fee on businesses that would have been used to fund inspections for zoning violations.

Supervisor Maria VanderKolk, the lone no vote on the business license tax, said the board needed more time to study the impact of the tax on businesses. She also questioned what she believed were high administrative costs.

Others at the sparsely attended hearing urged a delay as well, citing tough economic times for businesses that they said could not afford the tax.

“Business was not all that great this year,” said Mary Berrington, representing the Valley Advisory Committee in the Fillmore area. Businesses have had to deal with the drought and a freeze, she said.

“The entire business community will be impacted,” said Jere Robings, executive director of the Ventura County Taxpayer’s Assn. “In light of the recession and 7.5% unemployment in the county, it is not the best time to impose a burden on businesses trying to stay alive.”

The tax, which would go into effect July 1, would affect about 3,000 businesses in unincorporated areas. Growers would be exempt because of the county’s orientation toward preserving agriculture.

The tax would be based on gross income. Businesses would be taxed at the rate of 50 cents to $1.50 per $1,000 of gross income, depending on the type of business and the profit margin that it generates.

The tax is expected to generate $500,000 a year. But the cost of four additional employees and other administrative costs would bring the net proceeds to $310,000.

All 10 cities in the county have business license taxes, but until state legislation was passed last year, the county lacked authority for such a tax. That legislation gave counties several new fund-raising avenues to offset state funding shortages, including authority to bill cities for booking prisoners into jail and to assess school districts for collecting property taxes.

Despite heavy opposition, county supervisors have already taken action to raise more money through booking fees and bills for tax collection. Still, they cite an estimated $13-million shortfall in the 1991-92 budget because of state funding cutbacks.

“We have some potentially terrible, terrible financial conditions facing us,” Supervisor John K. Flynn said in justifying the business license tax. If the county is going to look to cities and school districts for extra money, then it is only fair to tax businesses, he said.

“It’s obvious you need the money,” said Rex Laird, representing the Farm Bureau. But he urged the county to consider the impact on businesses. Under the proposed tax, a packinghouse, for example, might pay $10,000 a year, while the tax in Oxnard would be only $1,000, he said.

“Frankly, I don’t think you have enough information to make a decision,” he said.