14 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!
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. No precedents exist for such barriers. Other cities DO NOT CLASSIFY someone having income from rooms or an ADU or 2 in their homes/on the property where they live a "rental business" & nor should Oakland. Oakland lags far behind other Bay Area cities in providing workable solutions for the displacement & homelessness crises, despite the worst problems in the country.
Will Oakland spend tens of millions of dollars to build low cost housing? 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 hire staff to harass, punish & place liens on small landlords who do help?
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!
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. No precedents exist for such barriers. Other cities DO NOT CLASSIFY someone having income from rooms or an ADU or 2 in their homes/on the property where they live a "rental business" & nor should Oakland. Oakland lags far behind other Bay Area cities in providing workable solutions for the displacement & homelessness crises, despite the worst problems in the country.
Will Oakland spend tens of millions of dollars to build low cost housing? 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 hire staff to harass, punish & place liens on small landlords who do help?