12 20-0445 Subject: Equitable Business Tax Update
From: Councilmember Bas, Thao And President Pro Tem Kalb
Recommendation: Adopt A Resolution On The City Council's Own Motion Submitting To The Voters At The November 3, 2020 General Municipal Election, An Ordinance Repealing And Replacing Chapter 5.04 Of The Oakland Municipal Code To Create An Progressive, Modern, And Equitable Business Tax Structure; And Directing The City Clerk To Take All Actions Necessary To Prepare For And Conduct A November 3, 2020 General Municipal Election.
Budgets reflect our values. Values reflect our humanity. Our humanity is grounded in sacredness of Life. Fair and equitable taxation in our city needs to be voted on by Oakland's citizens. That is why I strongly support Councilmembers Bas, Thao and Kalb's recommendation for An Equitable Business Tax Structure.
Thank you for moving forward affirmatively on this.
Rev. Kurt A. Kuhwald, resident of District 3.
My name is Bruce Leininger. I live in Oakland and I support the Equitable Business Tax Measure as proposed. Large corporations have profited from the pandemic while small businesses and low-income residents and communities of color have been suffering from decreased city services like homelessness resources and community maintenance. Corporations that make over $50M are currently taxed at the same rate as small businesses making $50K. I support corporations paying their fair share. Don't wait! Please put the Equitable Business Tax proposal, as-is, on the November Ballot.
My name is Hanna Morris. I work in Oakland District 2, and I support the Equitable Business Tax Measure as proposed. Large corporations have profited from the pandemic while small businesses and low-income residents and communities of color have been suffering from decreased city services like homelessness resources and community maintenance. Corporations that make over $50M are currently taxed at the same rate as small businesses making $50K. I support corporations paying their fair share. Don't wait! Please put the Equitable Business Tax proposal, as-is, on the November Ballot.
I am writing as an independed small business owner in D3 since 2014.
Now, more than ever, we need action from our elected leaders. On Tuesday, the City Council will decide whether to put the Equitable Business Tax Update on the November 2020 Ballot. This is one such action you can take to support our small businesses now and bring in needed revenue to the City, so it can provide better services to our businesses and customers. Services for homelessness, graffiti removal, street and sidewalk repair, and ensuring our commercial corridors are safe--services that could help our businesses to thrive.
This Equitable Business Tax measure is long overdue. It would increase equity, support our struggling small, local businesses, and raise new, annual revenue for vital city services. We urge you to move the equitable business tax forward to serve all the city’s residents and small businesses, not just the interests of the largest corporations.
Please pass this measure and let the voters decide in November whether to adopt such an equitable and progressive business tax structure, close tax loopholes, and increase revenue for our City, all of which is long overdue in Oakland. We cannot wait on this legislation--please take action now.
D7 resident - Larger more profitable corporations should pay their fair share of taxes into our city's general fund. Thank you CMs Bas, Thao and Kalb for your leadership on this! I want the opportunity to vote on this in November and urge the council to approve this for the ballot today. Thank you!
D7 resident and Political Director of Oakland Rising. We are full support of the equitable tax measure and thank the bold leadership of CM Bas, Thao, and Kalb for pushing for this moment to have this conversation. I am sad to imagine that the rest of the council has fallen back on fear and will not take the bold steps that are needed in this moment to ensure we are creating the revenue streams that will be need to take care of our communities as we move into recovery phase. We hope that the City Council will see that what we need to take is bolder steps like these to move legislation forward that will protect us and not the status quo. The moment is now to call corporations into accountability for all the benefits they reap from our communities and ask the voters of Oakland to vote on measure that will help bring millions into our general fund.
D6 resident- I support the proposal by CMs Bas, Thao and Kalb to place the equitable tax measure on the ballot for this Nov. 2020. With unprecedented budget shortfalls ($60m deficit in Oakland), we must ensure every business is paying their fair share, and we must receive the burden from small businesses and residents. I support making sure high-grossing corporations pay their fair share before proposing parcel and sales taxes that impact residents.
As a Grand Lake/Adams Point/D2 homeowner, I support the Equitable Business Tax Measure as proposed. Large corporations have profited from the pandemic while small businesses and low-income residents and communities of color have been suffering from decreased city services like homelessness resources and community maintenance. Corporations that make over $50M are currently taxed at the same rate as small businesses making $50K. I support corporations paying their fair share. Please put the Equitable Business Tax proposal, as-is, on the November Ballot. Thanks to my councilmember, Councilmember Bas, for leading on this.
I oppose the passage of this update UNLESS Council President Kaplan's amendment to exempt from this tax all businesses grossing under $50,000 per year is included.
My name is Trisha Barua. I live in District 5 and I support the Equitable Business Tax Measure as proposed. Large corporations have profited from the pandemic while small businesses and low-income residents and communities of color have been suffering from decreased city services like homelessness resources and community maintenance. Corporations that make over $50M are currently taxed at the same rate as small businesses making $50K. I support corporations paying their fair share. Don't wait! Please put the Equitable Business Tax proposal, as-is, on the November Ballot.
This is definitely a step in the right direction to have more resources for the city and community! Small businesses deserve to pay less while larger companies and corporations deserve to pay their fair share! That's what equity is and this is what we need to be focused on in this moment. As a homeowner in district 6, I want the opportunity to vote on this in November. Approve it for the November ballot today as is! We need to stop selling our city for scraps and put clear standards for what we deserve.
I don't think this legislation has been thought through carefully enough and I don't think there has been sufficient time to consider the input of the Oakland business community, large and small and in between. I think there is some intention to tax larger businesses more and smaller businesses less but I don't think you have the details sorted and in taxes the devil is definitely in the details. To take just one small example, it isn't fair to tax a real estate company a gross receipts tax on its income from real estate activities in Oakland and then additionally tax the passed on income of individual real estate agents. That is a double tax. One or the other is fair, both is not. I bet there are other examples throughout where the details haven't been thought through. Spend several months going through a thorough process and then put the final result on the ballot. If you do that, I think you will find you can create a significant buy in. This one isn't ready yet.= and I think you will not find the buy-in there in November.
Small businesses do not need another tax increase at this time. Small businesses are having enough challenges with COVID, maintaining staff, and facing the loss of revenue. The majority of annual gross receipts, around 80%, go to salaries for the professional services business. Small businesses can not easily raise prices in the current environment and if we do, there is a high probability that small businesses will not get the work. Please get off the back of small businesses.
I was initially relieved to see the notion of a progressive business tax brought to the table in Oakland, but my hopes quickly dwindled when i realized it will leave out small owner occupied landlords.
After removing the owner occupied exemption from duplexes and triplexes... why not show a little compassion towards small time OAKLAND RESIDENTS and rental housing providers, many of which kept rents under market (and who's generosity is now made permanent) by lowering the rental tax?
The new tax structure would still charge these, often low-income, homeowners a tax rate equal to retailers making $25M/year.
Oakland says it needs more rental units, yet continually punishes those most vulnerable who try to offer it. If Oakland keeps attacking small mom and pop housing providers, the end result is LESS units on the market. it happened in San Francisco, the outcome will be absolutely the same in Oakland. Less units on the market, higher rents.
Not to mention, the attack on small property owners will only drive further gentrification, as many of those you are targeting, are elderly Oakland natives who rely on the rental income of THEIR HOME to subsidized their often fixed incomes. Many will be forced to sell and leave their hometown. I'll assume that is not something you want to happen?
Many businesses are already struggling through the pandemic and have to make many sacrifices. California as a whole has lost many businesses specifically due to over taxation and over regulation. Council Member Thao, Bas and Kalb, please legislate based on sound research and credible data, not simplified ideology.
Raising taxes now will force businesses to leave Oakland, resulting in loss of local jobs as well as business tax revenue!
We need a city council that has actual experience in the private sector, that have actually built up a business and created jobs. This does NOT help with our pandemic recovery!
While this legislation states its purpose is to relieve the burden on small business owners, the legislation excludes a vital group of small business owners who rent out rooms in their homes. The gross receipt tax rate in this proposed legislation for those who rent out rooms is the current rate - no reduction or exemption. Councilmember Kaplan at least puts in some type of exemption to relieve yet another disincentive to rent out rooms in one's own home to relieve the housing shortage.
I would gladly Support this proposition IF rental properties were included in this progressive business tax. Currently, I own 8 times the amount than I would if my business (rental properties) were included in the business license tax. As any business owner would think = that's crazy. Why would I WANT to pay 8-35 times MORE on a tax if other businesses don't have to?
This proposal needs to be better reviewed and modified before it should appear on the November ballot.
Budgets reflect our values. Values reflect our humanity. Our humanity is grounded in sacredness of Life. Fair and equitable taxation in our city needs to be voted on by Oakland's citizens. That is why I strongly support Councilmembers Bas, Thao and Kalb's recommendation for An Equitable Business Tax Structure.
Thank you for moving forward affirmatively on this.
Rev. Kurt A. Kuhwald, resident of District 3.
My name is Bruce Leininger. I live in Oakland and I support the Equitable Business Tax Measure as proposed. Large corporations have profited from the pandemic while small businesses and low-income residents and communities of color have been suffering from decreased city services like homelessness resources and community maintenance. Corporations that make over $50M are currently taxed at the same rate as small businesses making $50K. I support corporations paying their fair share. Don't wait! Please put the Equitable Business Tax proposal, as-is, on the November Ballot.
My name is Hanna Morris. I work in Oakland District 2, and I support the Equitable Business Tax Measure as proposed. Large corporations have profited from the pandemic while small businesses and low-income residents and communities of color have been suffering from decreased city services like homelessness resources and community maintenance. Corporations that make over $50M are currently taxed at the same rate as small businesses making $50K. I support corporations paying their fair share. Don't wait! Please put the Equitable Business Tax proposal, as-is, on the November Ballot.
Dear Members of the Oakland City Council,
I am writing as an independed small business owner in D3 since 2014.
Now, more than ever, we need action from our elected leaders. On Tuesday, the City Council will decide whether to put the Equitable Business Tax Update on the November 2020 Ballot. This is one such action you can take to support our small businesses now and bring in needed revenue to the City, so it can provide better services to our businesses and customers. Services for homelessness, graffiti removal, street and sidewalk repair, and ensuring our commercial corridors are safe--services that could help our businesses to thrive.
This Equitable Business Tax measure is long overdue. It would increase equity, support our struggling small, local businesses, and raise new, annual revenue for vital city services. We urge you to move the equitable business tax forward to serve all the city’s residents and small businesses, not just the interests of the largest corporations.
Please pass this measure and let the voters decide in November whether to adopt such an equitable and progressive business tax structure, close tax loopholes, and increase revenue for our City, all of which is long overdue in Oakland. We cannot wait on this legislation--please take action now.
Thank you,
Ari Takata-Vasquez
D7 resident - Larger more profitable corporations should pay their fair share of taxes into our city's general fund. Thank you CMs Bas, Thao and Kalb for your leadership on this! I want the opportunity to vote on this in November and urge the council to approve this for the ballot today. Thank you!
D7 resident and Political Director of Oakland Rising. We are full support of the equitable tax measure and thank the bold leadership of CM Bas, Thao, and Kalb for pushing for this moment to have this conversation. I am sad to imagine that the rest of the council has fallen back on fear and will not take the bold steps that are needed in this moment to ensure we are creating the revenue streams that will be need to take care of our communities as we move into recovery phase. We hope that the City Council will see that what we need to take is bolder steps like these to move legislation forward that will protect us and not the status quo. The moment is now to call corporations into accountability for all the benefits they reap from our communities and ask the voters of Oakland to vote on measure that will help bring millions into our general fund.
D6 resident- I support the proposal by CMs Bas, Thao and Kalb to place the equitable tax measure on the ballot for this Nov. 2020. With unprecedented budget shortfalls ($60m deficit in Oakland), we must ensure every business is paying their fair share, and we must receive the burden from small businesses and residents. I support making sure high-grossing corporations pay their fair share before proposing parcel and sales taxes that impact residents.
As a Grand Lake/Adams Point/D2 homeowner, I support the Equitable Business Tax Measure as proposed. Large corporations have profited from the pandemic while small businesses and low-income residents and communities of color have been suffering from decreased city services like homelessness resources and community maintenance. Corporations that make over $50M are currently taxed at the same rate as small businesses making $50K. I support corporations paying their fair share. Please put the Equitable Business Tax proposal, as-is, on the November Ballot. Thanks to my councilmember, Councilmember Bas, for leading on this.
I support this measure
I oppose the passage of this update UNLESS Council President Kaplan's amendment to exempt from this tax all businesses grossing under $50,000 per year is included.
My name is Trisha Barua. I live in District 5 and I support the Equitable Business Tax Measure as proposed. Large corporations have profited from the pandemic while small businesses and low-income residents and communities of color have been suffering from decreased city services like homelessness resources and community maintenance. Corporations that make over $50M are currently taxed at the same rate as small businesses making $50K. I support corporations paying their fair share. Don't wait! Please put the Equitable Business Tax proposal, as-is, on the November Ballot.
This is definitely a step in the right direction to have more resources for the city and community! Small businesses deserve to pay less while larger companies and corporations deserve to pay their fair share! That's what equity is and this is what we need to be focused on in this moment. As a homeowner in district 6, I want the opportunity to vote on this in November. Approve it for the November ballot today as is! We need to stop selling our city for scraps and put clear standards for what we deserve.
Please treat all small businesses the same with your tax structure. It is as if Oakland wants to displace small property owners.
I don't think this legislation has been thought through carefully enough and I don't think there has been sufficient time to consider the input of the Oakland business community, large and small and in between. I think there is some intention to tax larger businesses more and smaller businesses less but I don't think you have the details sorted and in taxes the devil is definitely in the details. To take just one small example, it isn't fair to tax a real estate company a gross receipts tax on its income from real estate activities in Oakland and then additionally tax the passed on income of individual real estate agents. That is a double tax. One or the other is fair, both is not. I bet there are other examples throughout where the details haven't been thought through. Spend several months going through a thorough process and then put the final result on the ballot. If you do that, I think you will find you can create a significant buy in. This one isn't ready yet.= and I think you will not find the buy-in there in November.
Small businesses do not need another tax increase at this time. Small businesses are having enough challenges with COVID, maintaining staff, and facing the loss of revenue. The majority of annual gross receipts, around 80%, go to salaries for the professional services business. Small businesses can not easily raise prices in the current environment and if we do, there is a high probability that small businesses will not get the work. Please get off the back of small businesses.
I was initially relieved to see the notion of a progressive business tax brought to the table in Oakland, but my hopes quickly dwindled when i realized it will leave out small owner occupied landlords.
After removing the owner occupied exemption from duplexes and triplexes... why not show a little compassion towards small time OAKLAND RESIDENTS and rental housing providers, many of which kept rents under market (and who's generosity is now made permanent) by lowering the rental tax?
The new tax structure would still charge these, often low-income, homeowners a tax rate equal to retailers making $25M/year.
Oakland says it needs more rental units, yet continually punishes those most vulnerable who try to offer it. If Oakland keeps attacking small mom and pop housing providers, the end result is LESS units on the market. it happened in San Francisco, the outcome will be absolutely the same in Oakland. Less units on the market, higher rents.
Not to mention, the attack on small property owners will only drive further gentrification, as many of those you are targeting, are elderly Oakland natives who rely on the rental income of THEIR HOME to subsidized their often fixed incomes. Many will be forced to sell and leave their hometown. I'll assume that is not something you want to happen?
Many businesses are already struggling through the pandemic and have to make many sacrifices. California as a whole has lost many businesses specifically due to over taxation and over regulation. Council Member Thao, Bas and Kalb, please legislate based on sound research and credible data, not simplified ideology.
Raising taxes now will force businesses to leave Oakland, resulting in loss of local jobs as well as business tax revenue!
We need a city council that has actual experience in the private sector, that have actually built up a business and created jobs. This does NOT help with our pandemic recovery!
Please support a more equitable tax structure that levels the playing field for local small business.
While this legislation states its purpose is to relieve the burden on small business owners, the legislation excludes a vital group of small business owners who rent out rooms in their homes. The gross receipt tax rate in this proposed legislation for those who rent out rooms is the current rate - no reduction or exemption. Councilmember Kaplan at least puts in some type of exemption to relieve yet another disincentive to rent out rooms in one's own home to relieve the housing shortage.
I would gladly Support this proposition IF rental properties were included in this progressive business tax. Currently, I own 8 times the amount than I would if my business (rental properties) were included in the business license tax. As any business owner would think = that's crazy. Why would I WANT to pay 8-35 times MORE on a tax if other businesses don't have to?
This proposal needs to be better reviewed and modified before it should appear on the November ballot.