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.
I support adding this to the ballot in November, and wholeheartedly hope that it will pass. There is no reason that we should expect small businesses to be able to pay the same taxes as large corporations. Thank you for addressing this and potentially generating millions of tax dollars that Oakland desperately needs.
Once again the Oakland City Council is considering proposed ballot measures on a timeline that allows for short public notice and insufficient opportunity for public review and response to those proposals. Oakland residents deserve better.
The emergency procedures allowing for fewer days notice for Council meetings exacerbate the problem, particularly because materials can appear only 24 hours before a meeting. Just today, five supplemental reports were posted regarding the business tax proposal being considered Tuesday. At the least, we urge you to give full oral explanations for each issue you discuss and for your final decisions.
Approving measures for the ballot at the last minute has been too frequent, and not just in emergencies. Strong public response to the
precipitous approval of the mid-cycle budget amendments on June 23 have led to a welcome focus on improvements in Council procedures, and we look forward to participating in those discussions. We urge you to provide for more timely notice and increased transparency in all you do.
My name is Jocelyn and I live in District 3. I strongly support the proposed Item 7, the Right to Recall ordinance, Item 8, Stronger Tenant Protections and Item 12, proposal for an equitable city businesses tax model that will bring millions in funding to Oakland. We need to ensure that as we move towards how to resolve and move towards just recovery, that our workers are protected, our tenants in precarious housing don’t end up homeless, and we have the funding revenue to help care of all Oakland residents. Thank you Councilmember Nikki Bas, Councilmember Sheng Thao, President Pro-tem Dan Kalb for much of your leadership on these items as well as the many community organizations that have worked to ensure our most communities are protected.
As a resident of District 4, a current City employee, and the spouse of a small business owner, Council needs to pause and properly evaluate what a progressive tax overhaul entails and the implications it has across the board for ALL of Oakland. I am disappointed that Council is rushing this through without the transparency the City needs, and without regard to the potential consequences that will surely impact small business owners and residents alike.
Some questions to ponder-
How does Council plan to ATTRACT and RETAIN larger corporations when the tax burden will be on them? What about keeping those already here?
What is the contingency plan for the exodus of large corporations that no longer need brick and mortar locations? How will Council replace the lost revenue? What's the pecking order for cutting services?
How will Council address the additional costs larger corporations may pass-on to the consumers due to their increased tax liability? Cannabis already collects a City tax. What's stopping Target, or Safeway from adding that to the bottom of receipts?
How will Council support the small businesses that rely on the employees from the larger corporations who shop with them if the larger corporations leave Oakland?
We must be prudent. We must be rational. We simply need more information.
I oppose this recommendation from Councilmember Bas, Thao, and President Pro Tem Kalb.
I am 73 yrs. old and rent a room and bath of my home at a very low rate. I support ONLY if Rebecca Kaplan's amendment to protect small landlords (room & bath rentals, in-laws, ADU's, below market rent, etc.) is included. Let's not harm those who are trying to help!
Hello, I am a small Oakland residential rental business owner of more than 40 years. In all that time, I have never come close to grossing $50,000 annually in rental income. I am current in paying my business tax and RAP fee. In addition, I am a retired senior citizen and, fortunately, I have good long term tenants. I am emailing to urge you to create, approve, and adopt a progressive, equitable, modern business tax structure for the Nov. 3rd ballot which will be fair for small business owners and ensure that large corporations pay their fair business taxes.
Modern, And Equitable Business Tax Structure; A
I oppose the passage of the Equitable Business Tax measure UNLESS Council President Kaplan's amendment to have all business grossing under $50,000 per year exempt from the tax is approved. Once again, your "Progressive" minds will end up hurting the ones you supposedly want to help...low income tenants/renters. Tax increases, fines etc will have to be passed on to them. Don't forget the low income landlords either! I'm an owner-occupied duplex owner making way less that $50,000 per year with my property and yet I'll have to pay 10 TIMES more than a company making 24$ Million?!? On what planet does this make sense?
I live in District 6, and I support the Equitable Business Tax Measure as proposed. Let the voters decide in November. Large corporations have profited from the pandemic ten-twenty fold, while low-income residents and communities of color will be the first to suffer 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. District 6 small businesses should receive the tax benefit from this legislation. Don't wait- put the Equitable Business Tax proposal as-is, without weakening it, on the ballot in November.
I support a change to the business tax structure to ensure that large corporations and businesses pay their fair share to make Oakland a great place to live and work. However, some attention needs to be paid to the lower-income end of the spectrum as well and I believe that Kaplan's Exemption for those renting rooms or ADUs, or those making less than $50,000 a year is a move in the right direction for fairness, equity, and to spur the production and availability of more housing for people of all incomes.
OPPOSE WITHOUT EXEMPTION FOR SMALL LANDLORDS & BUSINESSES
The Glenview Area Groups for Action (GAGA) represents hundreds of members in the Glenview area & is a member organization of the Oakland Neighbors Defending our Homes City-wide Coalition advocating for more low-cost rentals, against rampant displacement of long-term home owners/gentrification, & stemming the rising tide of homelessness. It is shocking that Oakland is the only Bay Area city exacting a substantial "Rental Business" Tax for those renting rooms/ADUs on their property. Other cities provide subsidies & encouragement to those providing lower cost housing at no cost to the City.
Now some Oakland Public Officials want to implement a so-called "Progressive, Modern & Equitable" Business Tax, while preserving the antiquated, counter-productive, unjust, racist, most regressive tax in the Bay Area! Those small landlords struggling to pay their mortgage & attempting to house their sometimes extended family, friends & others, do not deserve to be taxed 10 times more than a retailer garnering $24 million per year! We don't need the army of staff chasing down POC!
GAGA demands that the City Council recognize ethnic communities maintain a culture of extended families in the same home, & are particularly targeted by the current tax. Without changing this punitive tax, any ballot measure is doomed to failure.
Vote to support the CM Kaplan sensible Exemption for those making less than $50,000 in gross receipts!
I oppose the passage of this update UNLESS Council President Kaplan's amendment to have all business grossing under $50,000 per year exempt from the tax in approved.
Oppose Without CM Kaplan Exemption. Please dont penalize very small businesses and very small landlords. The infill housing created by homeowners renting rooms, basements, In-Law units, or other ADUs is helping to address Oakland's critical affordable housing shortage and should not be punished by being taxed like a big business.
Housing is the most important thing now especially during this challenging time. Let's allow righteous citizens to rent extra space and not burden them with exorbitant taxes and penalties.
The councilman has been aggressive in harming small business owners and landlords the past several years. We owners have been providing housing for low income tenants and it is unfair to keep progressively taxing the hard working businesses and owners to supplement the mismanagement of funds by the City. This will hurt the people of Oakland in the end.
As a small landlord in Oakland, I try to help our city reverse the harm done by policies that discriminate against people of color, people who are poor, people with a criminal record, and at the same time, and I do not want to have to pass the cost of increased business taxes on to my renters, or to change and accept only those who can afford a higher rent.
The CM Kaplan Exemption for those renting rooms &/or ADUs must be included in the Proposed "Progressive" Business Tax Ballot Measure!
Please find your "Equity Lens" & apply it to this issue!
It is sad that this supposedly liberal Council characterizes the Proposed Business Tax overhaul as "progressive" when nothing is being done to correct the horribly regressive treatment of low-income homeowners renting space to help meet their mortgage. This CC purports to care about the skyrocketing displacement of low-income/elderly/people of color from their homes, some of which have been family owned for generations. The CC claims to be concerned about extremely high rents & the pressing need for lower cost rental units, does little to create them, & then punishes those that offer low cost rooms/ADUs. Taxing at 4 times the rate of S.F. landlords, & 10 times more than people making $25M in retail sales, & then placing liens if they can't pay is a tragic injustice. Instead of unfair taxes that no other Bay Area City demands of ADU renters, the CC should establish a large fund to assist the development of more ADUs!
Your CC says it cares about the unsheltered & the impact on our City but does little to solve the situation...& then discourages homeowners that might provide low-cost housing at NO COST to the City. This is the opportunity to correct this discriminatory practice!
NOW IS THE TIME TO CORRECT THIS INJUSTICE! INCLUDE THE KAPLAN EXEMPTION!
Neighbors Defending our Homes Coalition/NDH supports the Business Tax ONLY if CM Kaplan's exemption for small businesses is approved!
The Kaplan Exemption fits the City Adopted Economic Development Strategy, meeting the primary objectives of “1. Enable all residents to be economically secure, build wealth, & achieve their full potential; & 2. Reduce racial & gender gaps in employment, income and ownership; maintain diversity.”
Additional income from wealthy multi-millionaires will easily offset the small loss of revenue from struggling businesses and homeowners renting rooms and ADUs.
The Finance Dept. has an army of staff (19 FTEs) to chase small businesses & landlords garnering less than $50,000 of gross receipts (not profits!) per year--requiring proof of incom &,submission of full IRS Tax Forms, & placing liens on homes. Stop wasting taxpayer funds!
The Tax Measure can help correct the current 38-year-old, biased tax structure, but totally leaves out Oakland's most vulnerable residents and businesses-UNLESS the CM Kaplan Exemption is approved. Current rates hit lowest income residents & businesses hardest, devastates struggling communities, especially neighborhoods of color.
Our CC can no longer claim to care about small business survival, resident displacement, homelessness & lack of low-cost housing while voting against the CM Kaplan Exemption Amendment!
Voters hold you accountable for your action--stand with constituents, not huge corporations and wealthy.
Please support the progressive business tax plan! This is an excellent way to support small businesses and make sure that large corporations pay their fair share for Oakland!
I support adding this to the ballot in November, and wholeheartedly hope that it will pass. There is no reason that we should expect small businesses to be able to pay the same taxes as large corporations. Thank you for addressing this and potentially generating millions of tax dollars that Oakland desperately needs.
Once again the Oakland City Council is considering proposed ballot measures on a timeline that allows for short public notice and insufficient opportunity for public review and response to those proposals. Oakland residents deserve better.
The emergency procedures allowing for fewer days notice for Council meetings exacerbate the problem, particularly because materials can appear only 24 hours before a meeting. Just today, five supplemental reports were posted regarding the business tax proposal being considered Tuesday. At the least, we urge you to give full oral explanations for each issue you discuss and for your final decisions.
Approving measures for the ballot at the last minute has been too frequent, and not just in emergencies. Strong public response to the
precipitous approval of the mid-cycle budget amendments on June 23 have led to a welcome focus on improvements in Council procedures, and we look forward to participating in those discussions. We urge you to provide for more timely notice and increased transparency in all you do.
My name is Jocelyn and I live in District 3. I strongly support the proposed Item 7, the Right to Recall ordinance, Item 8, Stronger Tenant Protections and Item 12, proposal for an equitable city businesses tax model that will bring millions in funding to Oakland. We need to ensure that as we move towards how to resolve and move towards just recovery, that our workers are protected, our tenants in precarious housing don’t end up homeless, and we have the funding revenue to help care of all Oakland residents. Thank you Councilmember Nikki Bas, Councilmember Sheng Thao, President Pro-tem Dan Kalb for much of your leadership on these items as well as the many community organizations that have worked to ensure our most communities are protected.
As a resident of District 4, a current City employee, and the spouse of a small business owner, Council needs to pause and properly evaluate what a progressive tax overhaul entails and the implications it has across the board for ALL of Oakland. I am disappointed that Council is rushing this through without the transparency the City needs, and without regard to the potential consequences that will surely impact small business owners and residents alike.
Some questions to ponder-
How does Council plan to ATTRACT and RETAIN larger corporations when the tax burden will be on them? What about keeping those already here?
What is the contingency plan for the exodus of large corporations that no longer need brick and mortar locations? How will Council replace the lost revenue? What's the pecking order for cutting services?
How will Council address the additional costs larger corporations may pass-on to the consumers due to their increased tax liability? Cannabis already collects a City tax. What's stopping Target, or Safeway from adding that to the bottom of receipts?
How will Council support the small businesses that rely on the employees from the larger corporations who shop with them if the larger corporations leave Oakland?
We must be prudent. We must be rational. We simply need more information.
I oppose this recommendation from Councilmember Bas, Thao, and President Pro Tem Kalb.
I am 73 yrs. old and rent a room and bath of my home at a very low rate. I support ONLY if Rebecca Kaplan's amendment to protect small landlords (room & bath rentals, in-laws, ADU's, below market rent, etc.) is included. Let's not harm those who are trying to help!
Hello, I am a small Oakland residential rental business owner of more than 40 years. In all that time, I have never come close to grossing $50,000 annually in rental income. I am current in paying my business tax and RAP fee. In addition, I am a retired senior citizen and, fortunately, I have good long term tenants. I am emailing to urge you to create, approve, and adopt a progressive, equitable, modern business tax structure for the Nov. 3rd ballot which will be fair for small business owners and ensure that large corporations pay their fair business taxes.
Modern, And Equitable Business Tax Structure; A
As a resident of District 2, I support the passage of the Equitable Business Tax and believe it should be on the November ballot
I oppose the passage of the Equitable Business Tax measure UNLESS Council President Kaplan's amendment to have all business grossing under $50,000 per year exempt from the tax is approved. Once again, your "Progressive" minds will end up hurting the ones you supposedly want to help...low income tenants/renters. Tax increases, fines etc will have to be passed on to them. Don't forget the low income landlords either! I'm an owner-occupied duplex owner making way less that $50,000 per year with my property and yet I'll have to pay 10 TIMES more than a company making 24$ Million?!? On what planet does this make sense?
I live in District 6, and I support the Equitable Business Tax Measure as proposed. Let the voters decide in November. Large corporations have profited from the pandemic ten-twenty fold, while low-income residents and communities of color will be the first to suffer 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. District 6 small businesses should receive the tax benefit from this legislation. Don't wait- put the Equitable Business Tax proposal as-is, without weakening it, on the ballot in November.
I support a change to the business tax structure to ensure that large corporations and businesses pay their fair share to make Oakland a great place to live and work. However, some attention needs to be paid to the lower-income end of the spectrum as well and I believe that Kaplan's Exemption for those renting rooms or ADUs, or those making less than $50,000 a year is a move in the right direction for fairness, equity, and to spur the production and availability of more housing for people of all incomes.
OPPOSE WITHOUT EXEMPTION FOR SMALL LANDLORDS & BUSINESSES
The Glenview Area Groups for Action (GAGA) represents hundreds of members in the Glenview area & is a member organization of the Oakland Neighbors Defending our Homes City-wide Coalition advocating for more low-cost rentals, against rampant displacement of long-term home owners/gentrification, & stemming the rising tide of homelessness. It is shocking that Oakland is the only Bay Area city exacting a substantial "Rental Business" Tax for those renting rooms/ADUs on their property. Other cities provide subsidies & encouragement to those providing lower cost housing at no cost to the City.
Now some Oakland Public Officials want to implement a so-called "Progressive, Modern & Equitable" Business Tax, while preserving the antiquated, counter-productive, unjust, racist, most regressive tax in the Bay Area! Those small landlords struggling to pay their mortgage & attempting to house their sometimes extended family, friends & others, do not deserve to be taxed 10 times more than a retailer garnering $24 million per year! We don't need the army of staff chasing down POC!
GAGA demands that the City Council recognize ethnic communities maintain a culture of extended families in the same home, & are particularly targeted by the current tax. Without changing this punitive tax, any ballot measure is doomed to failure.
Vote to support the CM Kaplan sensible Exemption for those making less than $50,000 in gross receipts!
I oppose the passage of this update UNLESS Council President Kaplan's amendment to have all business grossing under $50,000 per year exempt from the tax in approved.
Oppose Without CM Kaplan Exemption. Please dont penalize very small businesses and very small landlords. The infill housing created by homeowners renting rooms, basements, In-Law units, or other ADUs is helping to address Oakland's critical affordable housing shortage and should not be punished by being taxed like a big business.
I am a homeowner and resident of District 2 and support this measure to enact a more progressive commercial tax structure in Oakland!
Housing is the most important thing now especially during this challenging time. Let's allow righteous citizens to rent extra space and not burden them with exorbitant taxes and penalties.
The councilman has been aggressive in harming small business owners and landlords the past several years. We owners have been providing housing for low income tenants and it is unfair to keep progressively taxing the hard working businesses and owners to supplement the mismanagement of funds by the City. This will hurt the people of Oakland in the end.
As a small landlord in Oakland, I try to help our city reverse the harm done by policies that discriminate against people of color, people who are poor, people with a criminal record, and at the same time, and I do not want to have to pass the cost of increased business taxes on to my renters, or to change and accept only those who can afford a higher rent.
Dear Oakland CC Member,
The CM Kaplan Exemption for those renting rooms &/or ADUs must be included in the Proposed "Progressive" Business Tax Ballot Measure!
Please find your "Equity Lens" & apply it to this issue!
It is sad that this supposedly liberal Council characterizes the Proposed Business Tax overhaul as "progressive" when nothing is being done to correct the horribly regressive treatment of low-income homeowners renting space to help meet their mortgage. This CC purports to care about the skyrocketing displacement of low-income/elderly/people of color from their homes, some of which have been family owned for generations. The CC claims to be concerned about extremely high rents & the pressing need for lower cost rental units, does little to create them, & then punishes those that offer low cost rooms/ADUs. Taxing at 4 times the rate of S.F. landlords, & 10 times more than people making $25M in retail sales, & then placing liens if they can't pay is a tragic injustice. Instead of unfair taxes that no other Bay Area City demands of ADU renters, the CC should establish a large fund to assist the development of more ADUs!
Your CC says it cares about the unsheltered & the impact on our City but does little to solve the situation...& then discourages homeowners that might provide low-cost housing at NO COST to the City. This is the opportunity to correct this discriminatory practice!
NOW IS THE TIME TO CORRECT THIS INJUSTICE! INCLUDE THE KAPLAN EXEMPTION!
Neighbors Defending our Homes Coalition/NDH supports the Business Tax ONLY if CM Kaplan's exemption for small businesses is approved!
The Kaplan Exemption fits the City Adopted Economic Development Strategy, meeting the primary objectives of “1. Enable all residents to be economically secure, build wealth, & achieve their full potential; & 2. Reduce racial & gender gaps in employment, income and ownership; maintain diversity.”
Additional income from wealthy multi-millionaires will easily offset the small loss of revenue from struggling businesses and homeowners renting rooms and ADUs.
The Finance Dept. has an army of staff (19 FTEs) to chase small businesses & landlords garnering less than $50,000 of gross receipts (not profits!) per year--requiring proof of incom &,submission of full IRS Tax Forms, & placing liens on homes. Stop wasting taxpayer funds!
The Tax Measure can help correct the current 38-year-old, biased tax structure, but totally leaves out Oakland's most vulnerable residents and businesses-UNLESS the CM Kaplan Exemption is approved. Current rates hit lowest income residents & businesses hardest, devastates struggling communities, especially neighborhoods of color.
Our CC can no longer claim to care about small business survival, resident displacement, homelessness & lack of low-cost housing while voting against the CM Kaplan Exemption Amendment!
Voters hold you accountable for your action--stand with constituents, not huge corporations and wealthy.
Please support the progressive business tax plan! This is an excellent way to support small businesses and make sure that large corporations pay their fair share for Oakland!