3.16 22-0258 Subject: Informational Report On Economic Analyses Of The Two Citizen Initiatives Proposing New Business License Tax Rates On The November 2, 2022 Ballot
From: Council President Bas And Councilmember Fife
Recommendation: Receive An Informational Report From The Finance Department On Economic Analyses Of The Following Two Citizen Initiatives For The November 2, 2022 Ballot:
1. "Invest In Our Oakland Small Business Tax Fairness Act" Initiative Titled "Proposed Ordinance Repealing And Replacing The Business Tax Ordinance, Imposing Progressive Increases In The Tax Rates For Businesses Based On The Amount Of Their Gross Receipts, And Eliminating The Five-Year Exemption From Taxes For Construction Or Major Renovation Of Property Leased For Commercial Or Industrial Use", And
2. "Progressive And Equitable Oakland Business Gross Receipts Tax" Initiative Titled "Proposed Ordinance Repealing And Replacing The Business Tax Ordinance, Allocating The Revenue Increases For Restricted Purposes And Creating An Oakland Business Tax Commission"; On The April 21, 2022 Rules And Legislation Committee
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!?!
As Oakland emerges from this time of great upheaval, together, by supporting an equitable progressive business tax we can provide services Oakland residents and small businesses deserve.
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
As Oakland emerges from this time of great upheaval, together, by supporting an equitable progressive business tax we can provide services Oakland residents and small businesses deserve.