6 22-0202 Subject: Progressive And Equitable Business Tax
From: Council President Bas And Councilmember Fife
Recommendation: Adopt A Resolution: (1) Amending Resolution No. 88227 C.M.S., Which, Among Other Things, Submitted To The Voters At The November 8, 2022 General Municipal Election, An Ordinance Repealing And Replacing Chapter 5.04 Of The Oakland Municipal Code, To Modify Said Ordinance To Incorporate Recommendations From The Blue Ribbon Equitable Business Tax Task Force; And (2) Directing The City Clerk To Take All Actions Necessary To Prepare For And Conduct A November 8, 2022 General Municipal Election
I strongly support the most fair and equitable business tax possible. Small businesses need fundamental city services and resources to exist, and for far too long, small businesses have been forced to shoulder these costs on their own. Our community is made better by small businesses, and adequately funded city services. Reforming our business tax supports our community, essential city workers, and the small business community. As we continue to live in the midst of multiple global crises, it is important the city supports the most progressive business tax possible.
Many residents have not received rent for two years while providing housing which is easier said than done, especially with rising maintenance costs. This tax proposal should support small housing providers who are really hurting and having trouble taking care of their families. These families need help too. The tax proposal doesn't seem fair or equitable by overlooking this burden being shouldered.
I oppose this tax in its present form. I want small mom and pop landlords to be included in the "small business" category. If that change is made I will support this tax.
We need to support all local small businesses that are struggling. Many residents are being affected and hurt by this pandemic. As written this tax is not Progressive or Equitable since some small businesses earning less than $200,000 a year are paying the same tax rate as corporations earning $74 million a year. Needs to be amended to be equitable.
My husband and I strongly urge including all Oakland housing providers with 1-4 units within the "SMALL BUSINESS" tax category.
At a minimum, please include Owner-Occupied rental housing providers within the “SMALL BUSINESS” tax category.
I strongly support this progressive and equitable business tax, making these adjustments are long overdue. Many longtime residents and small businesses that have been holding our communities together for years have been forced to leave our communities. Increased funding for essential city services provides clean streets, safe communities, educational opportunities, access to great parks, and the opportunity to build a business. Plus advance so we can let the voters decide in November!
Oakland needs to seize every opportunity to keep rents low in Oakland, including categorizing small mom and pop landlords as small businesses. Oakland City Council be part of the solution, not part of the problem contributing to the high cost of maintaining rental properties! If you did the work to analyze the impacts of this policy on small landlords you would find that in the real world, maintenance and other costs have doubled or tripled like paint, wood, plywood and other maintenance supplies.
I applaud you for working toward a progressive business tax to more equitably and effectively fund Oakland’s needs, including our consistently highest priority need—addressing the lack of sufficient affordable housing and the homelessness crisis.
However, I urge you to create a business tax structure that encourages rather than discourages affordable long term rentals. The Executive Summary states that the residential rental rate structure is excluded because it was revised in 2019, but it was not revised in a progressive manner. The current proposal taxes a person renting out a room in their home at a rate far higher than other types of businesses with millions in gross receipts. Renting out an ADU or two rooms yielding $30,000/year gross would be taxed at $418.50 (plus $99 for registration and $101 for the annual RAP fee for the ADU?), whereas renting out a hotel room (AirBnB?) for $30,000 gross would be taxed at $50.
I think a person with gross receipts of up to somewhere between $30,000 and $50,000 from long-term residential rental should be exempted—without having to apply for an income-based refund. Again, let’s use the tax structure to encourage the creation and maintenance of affordable housing.
Thank you for your consideration,
PS, The Section O “employee” (including owner-employee) tax section is also quite confusing.
The city-wide Neighbors Defending our Homes Coalition (NDH) generally supports a truly equitable Business Tax. But this proposal heavily discriminates against Mom & Pop rental providers, demanding a tax rate 7 times as much as corporations garnering $74 Million/year-- outrageous! Small rental housing providers must be separated from commercial landlords & added to the Small Business tax category.
Hundreds of small, local rental providers are facing loss of their property, especially during this drastic Covid economic crisis. Yet under the proposal, rent from a duplex, triplex or the basement in your home, even from a family member, will continue to be taxed at the highest rate in Oakland. Other cities exempt such rental providers from local business taxes as responsible public officials understand such rental housing is more affordable & can slow displacement & homelessness, at no cost to taxpayers. Yet this measure continues the sad history of discouraging & punishing providers of lower cost, naturally occurring housing unlike any other Bay Area city. The 2019 Bus.Tax Exemption is a sad hoax--only 60 people applying in 2 years?!?
The City Council & Mayor repeat concerns about the increasing, rampant displacement of long-time Oakland families, the crisis in affordable rental units, needs for ADUs, and homelessness. Why have Oakland officials totally dropped their equity lens in the matter of taxing small rental providers!?!
It is way past time we implement revenue increases that take equity into account! Voting yes on this item is a move in the right direction. Big business can afford to pay additional taxes. They will still have plenty of profits.
I support the progressive tax proposal. A modernized business taxes means our neighbors will have the opportunity to continue to call Oakland home. Increased funding for essential city services provides clean streets, safe communities, educational opportunities, access to great parks, and the opportunity to build a business. We need a fair tax structure.
I support the progressive tax proposal. Corporations have been using Oakland as a cash cow for their businesses. Small businesses have closed and has caused the cash flow withing our city to diminish while the corporations take their business dollar outside the city through their employees who rush to leave Oakland and spend their money in other cities. It is only fair! We also need a taskforce to create and monitor this endeavor. So, it may be put on the November 8,2022 general elections.
Oakland SHALL NOT follow San Francisco's poor example.
San Francisco’s tax model has made San Francisco one of the highest taxing cities in the US, highest in the region fueling corporate relocations out of SF to cities across the Bay and across the US. SF has 17.5 million square feet of vacant office space right now, and a vacancy rate of nearly 20%.
Many recent Oakland tenants have come to escape SF taxes: PGE, Twitter (gave up 100k sf in SF and opened 60k sf in Oakland), Blue Shield, Credit Karma all moved out of SF and leased costly renovated spaces in Oakland. More new tenants came to Oakland than opened in SF during the pandemic.
Doing business in Oakland should be cost effective. We NEED businesses to come to Oakland. We NEED current businesses in Oakland to STAY. We NEED our current jobs in Oakland. We NEED new jobs and opportunities in Oakland.
I strongly support the most fair and equitable business tax possible. Small businesses need fundamental city services and resources to exist, and for far too long, small businesses have been forced to shoulder these costs on their own. Our community is made better by small businesses, and adequately funded city services. Reforming our business tax supports our community, essential city workers, and the small business community. As we continue to live in the midst of multiple global crises, it is important the city supports the most progressive business tax possible.
Many residents have not received rent for two years while providing housing which is easier said than done, especially with rising maintenance costs. This tax proposal should support small housing providers who are really hurting and having trouble taking care of their families. These families need help too. The tax proposal doesn't seem fair or equitable by overlooking this burden being shouldered.
I oppose this tax in its present form. I want small mom and pop landlords to be included in the "small business" category. If that change is made I will support this tax.
We need to support all local small businesses that are struggling. Many residents are being affected and hurt by this pandemic. As written this tax is not Progressive or Equitable since some small businesses earning less than $200,000 a year are paying the same tax rate as corporations earning $74 million a year. Needs to be amended to be equitable.
My husband and I strongly urge including all Oakland housing providers with 1-4 units within the "SMALL BUSINESS" tax category.
At a minimum, please include Owner-Occupied rental housing providers within the “SMALL BUSINESS” tax category.
I strongly support this progressive and equitable business tax, making these adjustments are long overdue. Many longtime residents and small businesses that have been holding our communities together for years have been forced to leave our communities. Increased funding for essential city services provides clean streets, safe communities, educational opportunities, access to great parks, and the opportunity to build a business. Plus advance so we can let the voters decide in November!
Oakland needs to seize every opportunity to keep rents low in Oakland, including categorizing small mom and pop landlords as small businesses. Oakland City Council be part of the solution, not part of the problem contributing to the high cost of maintaining rental properties! If you did the work to analyze the impacts of this policy on small landlords you would find that in the real world, maintenance and other costs have doubled or tripled like paint, wood, plywood and other maintenance supplies.
I applaud you for working toward a progressive business tax to more equitably and effectively fund Oakland’s needs, including our consistently highest priority need—addressing the lack of sufficient affordable housing and the homelessness crisis.
However, I urge you to create a business tax structure that encourages rather than discourages affordable long term rentals. The Executive Summary states that the residential rental rate structure is excluded because it was revised in 2019, but it was not revised in a progressive manner. The current proposal taxes a person renting out a room in their home at a rate far higher than other types of businesses with millions in gross receipts. Renting out an ADU or two rooms yielding $30,000/year gross would be taxed at $418.50 (plus $99 for registration and $101 for the annual RAP fee for the ADU?), whereas renting out a hotel room (AirBnB?) for $30,000 gross would be taxed at $50.
I think a person with gross receipts of up to somewhere between $30,000 and $50,000 from long-term residential rental should be exempted—without having to apply for an income-based refund. Again, let’s use the tax structure to encourage the creation and maintenance of affordable housing.
Thank you for your consideration,
PS, The Section O “employee” (including owner-employee) tax section is also quite confusing.
The city-wide Neighbors Defending our Homes Coalition (NDH) generally supports a truly equitable Business Tax. But this proposal heavily discriminates against Mom & Pop rental providers, demanding a tax rate 7 times as much as corporations garnering $74 Million/year-- outrageous! Small rental housing providers must be separated from commercial landlords & added to the Small Business tax category.
Hundreds of small, local rental providers are facing loss of their property, especially during this drastic Covid economic crisis. Yet under the proposal, rent from a duplex, triplex or the basement in your home, even from a family member, will continue to be taxed at the highest rate in Oakland. Other cities exempt such rental providers from local business taxes as responsible public officials understand such rental housing is more affordable & can slow displacement & homelessness, at no cost to taxpayers. Yet this measure continues the sad history of discouraging & punishing providers of lower cost, naturally occurring housing unlike any other Bay Area city. The 2019 Bus.Tax Exemption is a sad hoax--only 60 people applying in 2 years?!?
The City Council & Mayor repeat concerns about the increasing, rampant displacement of long-time Oakland families, the crisis in affordable rental units, needs for ADUs, and homelessness. Why have Oakland officials totally dropped their equity lens in the matter of taxing small rental providers!?!
The Neighbors Defending our Homes Coalition
It is way past time we implement revenue increases that take equity into account! Voting yes on this item is a move in the right direction. Big business can afford to pay additional taxes. They will still have plenty of profits.
I support the progressive tax proposal. A modernized business taxes means our neighbors will have the opportunity to continue to call Oakland home. Increased funding for essential city services provides clean streets, safe communities, educational opportunities, access to great parks, and the opportunity to build a business. We need a fair tax structure.
I support the progressive tax proposal. Corporations have been using Oakland as a cash cow for their businesses. Small businesses have closed and has caused the cash flow withing our city to diminish while the corporations take their business dollar outside the city through their employees who rush to leave Oakland and spend their money in other cities. It is only fair! We also need a taskforce to create and monitor this endeavor. So, it may be put on the November 8,2022 general elections.
Oakland SHALL NOT follow San Francisco's poor example.
San Francisco’s tax model has made San Francisco one of the highest taxing cities in the US, highest in the region fueling corporate relocations out of SF to cities across the Bay and across the US. SF has 17.5 million square feet of vacant office space right now, and a vacancy rate of nearly 20%.
Many recent Oakland tenants have come to escape SF taxes: PGE, Twitter (gave up 100k sf in SF and opened 60k sf in Oakland), Blue Shield, Credit Karma all moved out of SF and leased costly renovated spaces in Oakland. More new tenants came to Oakland than opened in SF during the pandemic.
Doing business in Oakland should be cost effective. We NEED businesses to come to Oakland. We NEED current businesses in Oakland to STAY. We NEED our current jobs in Oakland. We NEED new jobs and opportunities in Oakland.