6 18-1769 Subject: Business Tax Exemption For Small Landlords
From: President Pro Tempore Kalb And Councilmember Gallo
Recommendation: Adopt An Ordinance Amending The Oakland Municipal Code, Chapter 5.04, Section 5.04.420, To Fully Or Partially Exempt From The Business Tax On Residential Property Rentals Those Landlords With Personal Income Of 100 Percent Of Area Median Income Or Less Who Rent Out (1) Two Or Fewer Rooms From Their Single Family Home Of Personal Residence Or (2) A Unit From Their Owner-Occupied Two-Unit Parcel
Seniors and middle-class homeowners should not be penalized for making ends meet by renting part of their home. Other Bay Area cities actively encourage the creation of low-income housing options in private homes, but Oakland lags behind. This is in part due to a misguided attempt to collect what amounts to a small amount of income by taxing this sector as "businesses". I support CM Kaplan's original Supplement and oppose CM Kalb's Amendments. These Amendments screen homeowners out of exemption from business tax due to level of income and length of home ownership, among other irrelevant factors. Kalb's version also allows Oakland's shameful practice of putting liens on homes for back business taxes where the City failed to even notify the homeowners of their obligation to pay. These liens MUST be lifted!
t. I also agree with May Fong when she said, "Small landlords need to have exemptions to survive. It is unfair and unjust to tax them to death when they are providing housing to those in need." We're smarter than this, Oakland! Aren't we? Punishing small landlords is NOT the answer. Without these exceptions owner occupied landlords cannot survive. Many are already removing their properties off the market or doing short term housing (visiting nurses etc) which only makes the current housing crunch worse.
I was born in Oakland and live in in Oakland, and over the years I've come to realize that there are two ways to do things...the right way, and the "Oakland" way. By looking out your window, you can see that the "Oakland" way isn't working. I support the CM Kaplan original supplement and vehemently oppose the CM Kalb version which is just pandering. Please don't punish small landlords for doing what everyone wishes they had the guts to do. Don't lower the bar, raise it ...then everyone wins.
I want to Second Allan Brill and May Fong's comments and state that I, too, strongly support the CM Kaplan original supplement & STRONGLY OPPOSE the CM Kalb version. Why should we have unnecessary, counter-productive, and PUNITIVE hurdles to face when attempting to obtain an exemption for small landlords/ADUs from the "Rental Business" Tax???? Other cities do not classify someone having income from rooms in their home or an ADU on their property a "rental business" and neither should Oakland! I agree with Allan that "Oakland continues to lag far behind other Bay Area cities in providing workable solutions for the displacement & homelessness crises, despite having the worst problems." It's an embarrassment. I also agree with May Fong when she said, "Small landlords need to have exemptions to survive. It is unfair and unjust to tax them to death when they are providing housing to those in need." We're smarter than this, Oakland! Aren't we? Punishing small landlords is NOT the answer.
The current version proposed is a step in the right direction, but still flawed. We need amnesty for 2008-2015 taxes and fines. In addition, the three-year waiting period is counterproductive. Why not give landlords an incentive to rent from the beginning of their ownership?? -- Margaret Cunningham
I support this. I am in favor of fewer taxes on homeowners trying to survive. If other cities do not impose a business tax on personal home partial rentals where owners are present then neither should Oakland.
Our Neighbors Defending Our Homes Community Coalition strongly supports the CM Kaplan original Supplement & opposes the CM Kalb unnecessary, counter-productive, and punitive hurdles to obtaining the exemption for small landlords/ADUs from the "Rental Business" Tax. Other cities DO NOT CLASSIFY someone having income from rooms or an ADU or 2 in their homes where they live a "rental business", and neither should Oakland. Oakland continues to lag far behind other Bay Area cities in providing workable solutions for the displacement & homelessness crises, despite having the worst problems.
Will Oakland spend the tens of millions of dollars needed to build lower cost housing due to other priorities? Or collect more revenue from wealthy developers/businesses? Likely not.
Will you support natural low-cost rentals at no cost to the City by encouraging those who open their homes/property to those in need?! Or will you choose to place liens and punish small landlords who do help?
Our Neighbors Defending Our Homes Community Coalition strongly supports the CM Kaplan original Supplement & opposes the CM Kalb unnecessary, counter-productive, and punitive hurdles to obtaining the exemption for small landlords/ADUs from the "Rental Business" Tax. Other cities DO NOT CLASSIFY someone having income from rooms or an ADU or 2 in their homes where they live a "rental business", and neither should Oakland. Oakland continues to lag far behind other Bay Area cities in providing workable solutions for the displacement & homelessness crises, despite having the worst problems.
Will Oakland spend the tens of millions of dollars needed to build lower cost housing due to other priorities? Or collect more revenue from wealthy developers/businesses? Likely not.
Will you support natural low-cost rentals at no cost to the City by encouraging those who open their homes/property to those in need?! Or will you choose to place liens and punish small landlords who do help?
Our Neighbors Defending Our Homes Community Coalition strongly supports the CM Kaplan original Supplement & opposes the CM Kalb unnecessary, counter-productive, and punitive hurdles to obtaining the exemption for small landlords/ADUs from the "Rental Business" Tax. Other cities DO NOT CLASSIFY someone having income from rooms or an ADU or 2 in their homes where they live a "rental business", and neither should Oakland. Oakland continues to lag far behind other Bay Area cities in providing workable solutions for the displacement & homelessness crises, despite having the worst problems.
Will Oakland spend the tens of millions of dollars needed to build lower cost housing due to other priorities? Or collect more revenue from wealthy developers/businesses? Likely not.
Will you support natural low-cost rentals at no cost to the City by encouraging those who open their homes/property to those in need?! Or will you choose to place liens and punish small landlords who do help?
I support Kaplan's supplemental report for business exemption. Small landlords needs to have exemptions to survive. It is unfair and unjust to tax them to death when they are providing housing to those in need. Rather than punish owners for providing housing the City should provide incentives and tax breaks to thank them for giving to the community. The more encouragement and tax incentives more owners would be willing to open up and provide more affordable housing and it is a win win. Limited government regulation and taxes is the best solution for more housing and jobs. That's economics 101.
Seniors and middle-class homeowners should not be penalized for making ends meet by renting part of their home. Other Bay Area cities actively encourage the creation of low-income housing options in private homes, but Oakland lags behind. This is in part due to a misguided attempt to collect what amounts to a small amount of income by taxing this sector as "businesses". I support CM Kaplan's original Supplement and oppose CM Kalb's Amendments. These Amendments screen homeowners out of exemption from business tax due to level of income and length of home ownership, among other irrelevant factors. Kalb's version also allows Oakland's shameful practice of putting liens on homes for back business taxes where the City failed to even notify the homeowners of their obligation to pay. These liens MUST be lifted!
t. I also agree with May Fong when she said, "Small landlords need to have exemptions to survive. It is unfair and unjust to tax them to death when they are providing housing to those in need." We're smarter than this, Oakland! Aren't we? Punishing small landlords is NOT the answer. Without these exceptions owner occupied landlords cannot survive. Many are already removing their properties off the market or doing short term housing (visiting nurses etc) which only makes the current housing crunch worse.
Please support this exemption for middle class landlords renting out part of their homes, usually to make ends meet, or part of their duplexes.
I was born in Oakland and live in in Oakland, and over the years I've come to realize that there are two ways to do things...the right way, and the "Oakland" way. By looking out your window, you can see that the "Oakland" way isn't working. I support the CM Kaplan original supplement and vehemently oppose the CM Kalb version which is just pandering. Please don't punish small landlords for doing what everyone wishes they had the guts to do. Don't lower the bar, raise it ...then everyone wins.
I want to Second Allan Brill and May Fong's comments and state that I, too, strongly support the CM Kaplan original supplement & STRONGLY OPPOSE the CM Kalb version. Why should we have unnecessary, counter-productive, and PUNITIVE hurdles to face when attempting to obtain an exemption for small landlords/ADUs from the "Rental Business" Tax???? Other cities do not classify someone having income from rooms in their home or an ADU on their property a "rental business" and neither should Oakland! I agree with Allan that "Oakland continues to lag far behind other Bay Area cities in providing workable solutions for the displacement & homelessness crises, despite having the worst problems." It's an embarrassment. I also agree with May Fong when she said, "Small landlords need to have exemptions to survive. It is unfair and unjust to tax them to death when they are providing housing to those in need." We're smarter than this, Oakland! Aren't we? Punishing small landlords is NOT the answer.
The current version proposed is a step in the right direction, but still flawed. We need amnesty for 2008-2015 taxes and fines. In addition, the three-year waiting period is counterproductive. Why not give landlords an incentive to rent from the beginning of their ownership?? -- Margaret Cunningham
I support this. I am in favor of fewer taxes on homeowners trying to survive. If other cities do not impose a business tax on personal home partial rentals where owners are present then neither should Oakland.
Our Neighbors Defending Our Homes Community Coalition strongly supports the CM Kaplan original Supplement & opposes the CM Kalb unnecessary, counter-productive, and punitive hurdles to obtaining the exemption for small landlords/ADUs from the "Rental Business" Tax. Other cities DO NOT CLASSIFY someone having income from rooms or an ADU or 2 in their homes where they live a "rental business", and neither should Oakland. Oakland continues to lag far behind other Bay Area cities in providing workable solutions for the displacement & homelessness crises, despite having the worst problems.
Will Oakland spend the tens of millions of dollars needed to build lower cost housing due to other priorities? Or collect more revenue from wealthy developers/businesses? Likely not.
Will you support natural low-cost rentals at no cost to the City by encouraging those who open their homes/property to those in need?! Or will you choose to place liens and punish small landlords who do help?
Our Neighbors Defending Our Homes Community Coalition strongly supports the CM Kaplan original Supplement & opposes the CM Kalb unnecessary, counter-productive, and punitive hurdles to obtaining the exemption for small landlords/ADUs from the "Rental Business" Tax. Other cities DO NOT CLASSIFY someone having income from rooms or an ADU or 2 in their homes where they live a "rental business", and neither should Oakland. Oakland continues to lag far behind other Bay Area cities in providing workable solutions for the displacement & homelessness crises, despite having the worst problems.
Will Oakland spend the tens of millions of dollars needed to build lower cost housing due to other priorities? Or collect more revenue from wealthy developers/businesses? Likely not.
Will you support natural low-cost rentals at no cost to the City by encouraging those who open their homes/property to those in need?! Or will you choose to place liens and punish small landlords who do help?
Our Neighbors Defending Our Homes Community Coalition strongly supports the CM Kaplan original Supplement & opposes the CM Kalb unnecessary, counter-productive, and punitive hurdles to obtaining the exemption for small landlords/ADUs from the "Rental Business" Tax. Other cities DO NOT CLASSIFY someone having income from rooms or an ADU or 2 in their homes where they live a "rental business", and neither should Oakland. Oakland continues to lag far behind other Bay Area cities in providing workable solutions for the displacement & homelessness crises, despite having the worst problems.
Will Oakland spend the tens of millions of dollars needed to build lower cost housing due to other priorities? Or collect more revenue from wealthy developers/businesses? Likely not.
Will you support natural low-cost rentals at no cost to the City by encouraging those who open their homes/property to those in need?! Or will you choose to place liens and punish small landlords who do help?
I support Kaplan's supplemental report for business exemption. Small landlords needs to have exemptions to survive. It is unfair and unjust to tax them to death when they are providing housing to those in need. Rather than punish owners for providing housing the City should provide incentives and tax breaks to thank them for giving to the community. The more encouragement and tax incentives more owners would be willing to open up and provide more affordable housing and it is a win win. Limited government regulation and taxes is the best solution for more housing and jobs. That's economics 101.