2 22-0202 Subject: Progressive And Equitable Business Tax
From: Council President Bas, Councilmembers Fife, Kalb, And Pro Tem Thao
Recommendation: Adopt A Resolution: (1) Amending Resolution No. 88227 C.M.S., Which, Among Other Things, Submitted To The Voters At The November 8, 2022 General Municipal Election, An Ordinance Repealing And Replacing Chapter 5.04 Of The Oakland Municipal Code, To Modify Said Ordinance To Incorporate Recommendations From The Blue Ribbon Equitable Business Tax Task Force; And (2) Directing The City Clerk To Take All Actions Necessary To Prepare For And Conduct A November 8, 2022 General Municipal Election
Good Afternoon, my name is Maria Moreno and I'm a worker and small business advocate in Oakland with the REAL People's Fund. I am commenting today to ask the City to support a Progressive Business Tax because this is an important opportunity to create more equity in the city’s taxation, while also bringing in much-needed revenue for essential city services. Small businesses thrive when cities invest in high-quality jobs, education, housing, public safety, first responders, street paving, and bike lanes.
Please don't raise raise taxes on small rental property owners. You're planning to decrease the cpi rent increase. You're squeezing at both ends, raising our expenses with this tax proposal and decreasing our income as inflation soars by reducing the cpi increase.
Please lower the tax burden on mom n pop rental operators. Include small rental property providers within the "Miscellaneous" business category.
For decades, inequality has been growing as our social safety net has been divested in. We are asking for a system that is more fair for our small business community, that doesn’t put the interests of corporations over people.
Increased revenue could help build better and more response business assistance centers
Small businesses thrive when cities invest in high quality jobs, education, housing, public safety, first responders, street paving, and bike lanes.
Oakland needs to update its 20-year old outdated tax structure so that big corporations pay their fair share.
I want to run a business in a city with clean and safe streets, where people have stable and dignified housing. It’s time for large corporations to make the deep investment I’ve been making since Day 1.
The tax proposal isn't progressive or equitable. Many local residents with small businesses are being lumped with mega-corporations earning $74 million per year. Housing is an essential service that is hard to do and should be supported, especially when it is provided by hard working, local residents. Many small mom and pop housing providers offer affordable housing by discounting countless hours remodeling their homes, trading in their weekends to build equity so they can send their children college and for retirement. Many have struggled with the pandemic and have not received rent for almost two years. What concrete steps do city council members take to support local residents delivering affordable housing?
Residential rentals are also small businesses delivering essential services that should be treated equally as other small businesses.
This tax structure proposal is not Fair, equitable or progressive -- oppose unless modified to develop a "Class T: Residential Rental".
An equitable tax should NOT include small mom and pop rental providers in the same category as large corporations. Those of us who are renting out a few units/rooms are providing needed housing as well as attempting to afford living in our homes. We encourage you to either add small rental property providers to the “N Miscellaneous” category or specify a new Small Rental Property Providers (SRPP) tax category. This adjustment should not significantly impact Oakland’s tax revenue but would significantly make a difference to small rental property providers. This is only logical and fair.
One of the main goals of the Task Force process was to bring tax parity to like sized businesses. Small rental housing providers (5 units or less) must be separated from commercial landlords and added to the “N Miscellaneous” or new Small Rental Property Providers (SRPP) tax category. This modification would bring equity tax code.
My name is Laurika Harris-Kaye and I’m an Oakland resident who works with Runway and the REAL People’s Fund. I support the MOST PROGRESSIVE version of the Oakland progressive business tax, because it is vital that we create more equity in the city’s tax structure, while also bringing in much-needed revenue for essential city services. We can do that while only raising taxes on 10% of businesses. 90% of small businesses would see a reduction or no change in their taxes.
At Runway and REAL People’s Fund we work with small businesses across Oakland and the Bay Area, and during the pandemic many of them doubled-down on supporting their communities. A few examples include: using their restaurants as commissary kitchens to provide meals for neighbors, organizing mutual-aid networks, and turning their stores into community gathering spaces during the racial uprisings.
These businesses tell us that they need greater investment into public safety, technical assistance, transparency around permitting and licensing, as well as affordable housing and quality education. We can do all of that, and again, by only raising taxes on the wealthiest corporations in Oakland.
It’s the small businesses, not large corporations, who invest the most in their communities, and it’s well past time for Oakland to put its money where its mouth is, and provide REAL, RELIABLE and ROBUST support to the small businesses that are the lifeblood of our city.
Please include Small Rental Housing Providers with gross receipts under $150,000.in the "Class N: Miscellaneous Business". A large majority of Oakland Mom and Pop housing providers are minority and/or blue collar and should be treated equitably as a small business. Owning property should not be a restriction since some small retail businesses also own their retail property.
Please put us (mom and pop rental providers) in "Class N: Miscellaneous Business" . It really is unconscionable, and deep in your heart, you know it too. We are perhaps THE smallest of small businesses, yet you want to lump us in with large corporations? You say you want to help African-American, Latinx (hate this new term), and Asian families, but evidently it's not the ones who've worked all their lives, scrimped and saved and became taxpaying property owners in this city I used to love called Oakland...it's just the ones who sit back and complain and wait for their next stimulus check to roll in. Stop feeding them their daily fish.. teach them how to fish.
I urge you to include small rental property providers within the "Class N: Miscellaneous Business" category.
I would support this proposed business license tax if it were more equitable to rental property owners who earn less than $250,000 / year and are treated the same way as small businesses. To exclude rental properties from the progressive business license tax as a small business seems an arbitrary and illogical plan to encourage more affordable housing. Small rental property owners have higher overhead, more compassion for their tenants by working with them, and provide essential services by keeping their units available for rent. COVID has hit many owners quite hard, and separating this sector from the small business license tax is not only discriminatory, punitive, and discourages this small business to continue. Most owners are minorities, low-income, elderly, and / or struggling to make ends meet, and in similar dire straits as their tenants, yet shouldering more financial and legal responsibilities.
Council Members, I am writing to ask/request/implore, along many other housing providers and groups, for Mom & Pop rental providers to be included in the "Class N: Miscellaneous Business" category. The proposed language still treats Mom & Pop rental providers in a discriminatory manner in relation to all other small businesses in the City. Many language changes were made recently to accommodate business “stakeholders” but no new relief for the vast majority of endangered Mom & Pop rental providers facing the loss of their rental property.
Please, do the right and fair balanced thing and include mom-and-pop housing providers to the "Class N: Miscellaneous Business" category.
Thank you,
Benjamin Scott
Rent Board Commissioner (Fmr)
Chair, Citizens Budget Advisory Committee (Fmr)
Parks and Recreation Commissioner (Fmr)
Vice Chair, Dunsmur-Hellman Historic Estate (Fmr)
The singling out of small housing providers by discriminating against them with a punitive tax structure must be illegal. It certainly does illustrate the war on them in Oakland and only further drives the wedge that serves to separate the providers of affordable housing from those who need it. What are you people actually trying to accomplish? You are driving people out. Do not continue the assault.
Dennis OLeary- In It Together Oakland member- concerned resident
The city-wide NEIGHBORS DEFENDING OUR HOMES COALITION supports a truly Equitable Progressive Business Tax. But the proposed rates heavily discriminate against Mom & Pop rental providers, demanding a tax rate 28 times as much as grocers, for example. Small rental housing providers (5 units/rental payers or less) must be separated from commercial landlords & added to the “N. Miscellaneous” tax category. Oakland contemplates buying 13,000 lower cost rental units while unfairly driving out providers of lower cost rentals not costing taxpayers a penny!
Hundreds of small, local rental providers now face loss of their property, especially during this Covid economic crisis & rent moratoriums. Rent from a duplex, triplex or the home basement, even from a family member, will continue to be taxed at the highest rate in Oakland. Other cities exempt such rental providers from business taxes as they understand such rental housing is more affordable & can slow displacement & homelessness . Why continue the sad history of discouraging & driving out Mom & Pop rental providers costing the City $0?! The 2019 Tax Exemption is a sad hoax--only 60 people applying in 3 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, & homelessness. Why totally drop your equity lens in the matter of fairly taxing small rental providers!?
Good Afternoon, my name is Maria Moreno and I'm a worker and small business advocate in Oakland with the REAL People's Fund. I am commenting today to ask the City to support a Progressive Business Tax because this is an important opportunity to create more equity in the city’s taxation, while also bringing in much-needed revenue for essential city services. Small businesses thrive when cities invest in high-quality jobs, education, housing, public safety, first responders, street paving, and bike lanes.
Please don't raise raise taxes on small rental property owners. You're planning to decrease the cpi rent increase. You're squeezing at both ends, raising our expenses with this tax proposal and decreasing our income as inflation soars by reducing the cpi increase.
Please lower the tax burden on mom n pop rental operators. Include small rental property providers within the "Miscellaneous" business category.
My name is Diana Chan, I am a member of APEN.
For decades, inequality has been growing as our social safety net has been divested in. We are asking for a system that is more fair for our small business community, that doesn’t put the interests of corporations over people.
Increased revenue could help build better and more response business assistance centers
Small businesses thrive when cities invest in high quality jobs, education, housing, public safety, first responders, street paving, and bike lanes.
Oakland needs to update its 20-year old outdated tax structure so that big corporations pay their fair share.
I want to run a business in a city with clean and safe streets, where people have stable and dignified housing. It’s time for large corporations to make the deep investment I’ve been making since Day 1.
The tax proposal isn't progressive or equitable. Many local residents with small businesses are being lumped with mega-corporations earning $74 million per year. Housing is an essential service that is hard to do and should be supported, especially when it is provided by hard working, local residents. Many small mom and pop housing providers offer affordable housing by discounting countless hours remodeling their homes, trading in their weekends to build equity so they can send their children college and for retirement. Many have struggled with the pandemic and have not received rent for almost two years. What concrete steps do city council members take to support local residents delivering affordable housing?
Residential rentals are also small businesses delivering essential services that should be treated equally as other small businesses.
This tax structure proposal is not Fair, equitable or progressive -- oppose unless modified to develop a "Class T: Residential Rental".
An equitable tax should NOT include small mom and pop rental providers in the same category as large corporations. Those of us who are renting out a few units/rooms are providing needed housing as well as attempting to afford living in our homes. We encourage you to either add small rental property providers to the “N Miscellaneous” category or specify a new Small Rental Property Providers (SRPP) tax category. This adjustment should not significantly impact Oakland’s tax revenue but would significantly make a difference to small rental property providers. This is only logical and fair.
One of the main goals of the Task Force process was to bring tax parity to like sized businesses. Small rental housing providers (5 units or less) must be separated from commercial landlords and added to the “N Miscellaneous” or new Small Rental Property Providers (SRPP) tax category. This modification would bring equity tax code.
My name is Laurika Harris-Kaye and I’m an Oakland resident who works with Runway and the REAL People’s Fund. I support the MOST PROGRESSIVE version of the Oakland progressive business tax, because it is vital that we create more equity in the city’s tax structure, while also bringing in much-needed revenue for essential city services. We can do that while only raising taxes on 10% of businesses. 90% of small businesses would see a reduction or no change in their taxes.
At Runway and REAL People’s Fund we work with small businesses across Oakland and the Bay Area, and during the pandemic many of them doubled-down on supporting their communities. A few examples include: using their restaurants as commissary kitchens to provide meals for neighbors, organizing mutual-aid networks, and turning their stores into community gathering spaces during the racial uprisings.
These businesses tell us that they need greater investment into public safety, technical assistance, transparency around permitting and licensing, as well as affordable housing and quality education. We can do all of that, and again, by only raising taxes on the wealthiest corporations in Oakland.
It’s the small businesses, not large corporations, who invest the most in their communities, and it’s well past time for Oakland to put its money where its mouth is, and provide REAL, RELIABLE and ROBUST support to the small businesses that are the lifeblood of our city.
Please include Small Rental Housing Providers with gross receipts under $150,000.in the "Class N: Miscellaneous Business". A large majority of Oakland Mom and Pop housing providers are minority and/or blue collar and should be treated equitably as a small business. Owning property should not be a restriction since some small retail businesses also own their retail property.
Please put us (mom and pop rental providers) in "Class N: Miscellaneous Business" . It really is unconscionable, and deep in your heart, you know it too. We are perhaps THE smallest of small businesses, yet you want to lump us in with large corporations? You say you want to help African-American, Latinx (hate this new term), and Asian families, but evidently it's not the ones who've worked all their lives, scrimped and saved and became taxpaying property owners in this city I used to love called Oakland...it's just the ones who sit back and complain and wait for their next stimulus check to roll in. Stop feeding them their daily fish.. teach them how to fish.
Dear Oakland City Council Members:
I urge you to include small rental property providers within the "Class N: Miscellaneous Business" category.
I would support this proposed business license tax if it were more equitable to rental property owners who earn less than $250,000 / year and are treated the same way as small businesses. To exclude rental properties from the progressive business license tax as a small business seems an arbitrary and illogical plan to encourage more affordable housing. Small rental property owners have higher overhead, more compassion for their tenants by working with them, and provide essential services by keeping their units available for rent. COVID has hit many owners quite hard, and separating this sector from the small business license tax is not only discriminatory, punitive, and discourages this small business to continue. Most owners are minorities, low-income, elderly, and / or struggling to make ends meet, and in similar dire straits as their tenants, yet shouldering more financial and legal responsibilities.
Thank you,
Jeannie Llewellyn
Council Members, I am writing to ask/request/implore, along many other housing providers and groups, for Mom & Pop rental providers to be included in the "Class N: Miscellaneous Business" category. The proposed language still treats Mom & Pop rental providers in a discriminatory manner in relation to all other small businesses in the City. Many language changes were made recently to accommodate business “stakeholders” but no new relief for the vast majority of endangered Mom & Pop rental providers facing the loss of their rental property.
Please, do the right and fair balanced thing and include mom-and-pop housing providers to the "Class N: Miscellaneous Business" category.
Thank you,
Benjamin Scott
Rent Board Commissioner (Fmr)
Chair, Citizens Budget Advisory Committee (Fmr)
Parks and Recreation Commissioner (Fmr)
Vice Chair, Dunsmur-Hellman Historic Estate (Fmr)
The singling out of small housing providers by discriminating against them with a punitive tax structure must be illegal. It certainly does illustrate the war on them in Oakland and only further drives the wedge that serves to separate the providers of affordable housing from those who need it. What are you people actually trying to accomplish? You are driving people out. Do not continue the assault.
Dennis OLeary- In It Together Oakland member- concerned resident
The city-wide NEIGHBORS DEFENDING OUR HOMES COALITION supports a truly Equitable Progressive Business Tax. But the proposed rates heavily discriminate against Mom & Pop rental providers, demanding a tax rate 28 times as much as grocers, for example. Small rental housing providers (5 units/rental payers or less) must be separated from commercial landlords & added to the “N. Miscellaneous” tax category. Oakland contemplates buying 13,000 lower cost rental units while unfairly driving out providers of lower cost rentals not costing taxpayers a penny!
Hundreds of small, local rental providers now face loss of their property, especially during this Covid economic crisis & rent moratoriums. Rent from a duplex, triplex or the home basement, even from a family member, will continue to be taxed at the highest rate in Oakland. Other cities exempt such rental providers from business taxes as they understand such rental housing is more affordable & can slow displacement & homelessness . Why continue the sad history of discouraging & driving out Mom & Pop rental providers costing the City $0?! The 2019 Tax Exemption is a sad hoax--only 60 people applying in 3 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, & homelessness. Why totally drop your equity lens in the matter of fairly taxing small rental providers!?
The Neighbors Defending our Homes Coalition
Large corporations who are in Oakland should pay their fair share to do business here. They rale their gross receipts and invest in other cities.