THOUSAND OAKS : Council Defeats Plan to Raise Business Tax

A proposed increase in Thousand Oaks’ business tax was rejected when it failed to receive majority approval from City Council members earlier this week.

The tax was to be raised by 45%, which would have boosted city revenues about $450,000 annually. Councilman Andy Fox, who supported the increase, had proposed that the extra money be used to pay for enhanced police and library services.

At Tuesday night’s meeting, the council voted 3 to 2 in favor of raising the tax, with Councilwoman Elois Zeanah and Mayor Jaime Zukowski dissenting. A 4-1 vote was required to approve the increase. The vote was largely ceremonial, because another vote would have been needed to place the issue on the March ballot for voter consideration.

As a result of a recent California Supreme Court ruling, voters have final say over the tax increase. In September, the high court upheld the constitutionality of the 1987 ballot measure Proposition 67, which restricts local governments from raising taxes without voter approval.

The Thousand Oaks business tax, essentially a fee for doing business in the city, is the lowest in the county and has not been raised since 1971.

“I would not mind being the lowest still,” Zeanah said in dissenting. “If we raise this tax, it will be passed on to customers.”

Zeanah said she might have considered putting the business tax on the March ballot had it been packaged with another increase she supported--raising the bedroom tax. That increase, which would have affected new development, was rejected by the council last month.