2.18 22-0589 Subject: Corrections To The Equitable And Progressive Business Tax Ballot Measure
From: Council President Bas
Recommendation: Adopt A Resolution: 1. Amending Resolution No. 89202 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 City Staff; And 2. Directing The City Clerk To Take All Actions Necessary To Prepare For And Conduct A November 8, 2022 General Municipal Election
As a small owner of a triplex and as a African American. I'm appalled at the moves by this council. Thao, Kaplan, Kalb, Fife and Bass you all pro-port to look out for minorities when most if not all of your bills and ordinances hurt us the most. At a time when we've had 2 years of lost revenue due to Covid, minority landlords and all landlords who haven't received rents in over 2 years with no rental aid. One can only hope that you will reconsider this ill advised progressive and give small owner's the same deference as everyone else. If we all end up selling to corporate interest the fall out will be in on all of you.
The city council states that it supports small housing providers. Then I would strongly urge the council to add small housing providers to either class E or N, since we are making our tax structure progressive. The extremely limited exemption offered to small housing providers has proved to be an embarrassing joke. 68 exemptions, with an unstated number of yearly repeats in that number. Furthermore, that “exemption” enabled the City to target more SRPPs with past contributions to their mortgage from family, roommates and low-income renters in a basement or ADU with fines & liens of tens of thousands of dollars going back 30 years & more. The meeting on 6/28 to "consider" business tax on small housing providers was met with a chair who had made up his mind that any change but one word to the risible existing exemption was too expensive. So, was each class of small business involved in the new progressive tax structure analyzed for its impact on city revenues in the new structure. How many others were excluded as small businesses as "too expensive?" I understand we are in the running for worst-managed city. Here's an example of why.
As written, the current tax proposal is flawed and NOT Equitable nor Progressive - if a grocer and a small housing provider both earn the same amount of yearly income, the housing provider would be paying 2800% more in taxes!
Mom and Pops are part of the solution to the housing crisis and provide low cost housing. Many Mom and Pops are minority owners who provide housing to fellow minority residents.
We need to keep as many Mom and Pops as possible! Mom and Pops are being forced to sell. When their housing is taken over by large, outside corporations, residents see higher rents and more displacement.
I am truly saddened that the CC intends to move forward with a Progressive Business Tax (PBT) Ballot Measure that is profoundly INEQUITABLE to Mom & Pop housing providers. We have pointed out for months that, for example, the Measure will result in small rental providers with the same gross receipts as a grocer paying 2,800 times more Business Tax!
The current PBT ballot measure does nothing to stem the growing tide of displacement of Mom & Pops, & their renters, from Oakland. The resultant exodus combined with rampant gentrification exacerbates the lack of affordable housing, a major contributor to homelessness.
The CC is unwilling to consider the estimated $5M price tag to help maintain SRPP’s affordable housing yet:
* Plans a 11/22 Ballot Measure for an $850 taxpayer bond, in addition to the currently approved tens of millions of dollars, to purchase and build affordable housing;
* Has accommodated big business by reducing to $23M/year planned increases that would have resulted in $40M/year in the original PBT language; and
The so-called 2019 exemption, for which only a few dozen have qualified in 3 years, will meaningfully address the problem is a sad joke. That “exemption” enabled the City to identify more Mom & Pops who were not aware that accepting contributions to their mortgage from family, friends and low-income renters in a basement or ADU defined them as a “business”, resulting in additional City liens for tens of thousands of dollars going back 30+ years!
Neighbors Defending our Homes Coalition (NDH) questions this Progressive Business Tax (PBT) Ballot language that is profoundly INEQUITABLE to Mom & Pop housing providers. Small Rental Property Providers (SRPPs), for example, with the same gross receipts as a grocer will pay 2,800% more tax!
The current PBT ballot measure does nothing to stem the growing tide of displacement of SRPPs & their renters from Oakland. The resultant exodus exacerbates rampant gentrification, lack of affordable housing, & homelessness.
Pretending the 2019 exemption, for which only a few dozen have qualified in 3 years, will address the problem is a sad joke. That “exemption” enabled the City to target more SRPPs with past contributions to their mortgage from family, roommates and low-income renters in a basement or ADU with fines & liens of tens of thousands of dollars going back 30 years & more.
Yet at the same time the CC:
* Plans a 11/22 Ballot Measure for an $850M taxpayer bond, in addition to the currently approved tens of millions of dollars to purchase and build affordable housing.
* Has accommodated big business by reducing to $23M/year planned PBT revenue increases that would have resulted in $40M/year in the original PBT language; and
* Continues to pass motions about the homelessness emergency.
The CC can fix this policy failure by creating the SRPP Business Class separate from multi-millionaire landlords requested by NDH organizations & individuals. We urge you to do so ASAP!
As a small owner of a triplex and as a African American. I'm appalled at the moves by this council. Thao, Kaplan, Kalb, Fife and Bass you all pro-port to look out for minorities when most if not all of your bills and ordinances hurt us the most. At a time when we've had 2 years of lost revenue due to Covid, minority landlords and all landlords who haven't received rents in over 2 years with no rental aid. One can only hope that you will reconsider this ill advised progressive and give small owner's the same deference as everyone else. If we all end up selling to corporate interest the fall out will be in on all of you.
The city council states that it supports small housing providers. Then I would strongly urge the council to add small housing providers to either class E or N, since we are making our tax structure progressive. The extremely limited exemption offered to small housing providers has proved to be an embarrassing joke. 68 exemptions, with an unstated number of yearly repeats in that number. Furthermore, that “exemption” enabled the City to target more SRPPs with past contributions to their mortgage from family, roommates and low-income renters in a basement or ADU with fines & liens of tens of thousands of dollars going back 30 years & more. The meeting on 6/28 to "consider" business tax on small housing providers was met with a chair who had made up his mind that any change but one word to the risible existing exemption was too expensive. So, was each class of small business involved in the new progressive tax structure analyzed for its impact on city revenues in the new structure. How many others were excluded as small businesses as "too expensive?" I understand we are in the running for worst-managed city. Here's an example of why.
As written, the current tax proposal is flawed and NOT Equitable nor Progressive - if a grocer and a small housing provider both earn the same amount of yearly income, the housing provider would be paying 2800% more in taxes!
Mom and Pops are part of the solution to the housing crisis and provide low cost housing. Many Mom and Pops are minority owners who provide housing to fellow minority residents.
We need to keep as many Mom and Pops as possible! Mom and Pops are being forced to sell. When their housing is taken over by large, outside corporations, residents see higher rents and more displacement.
I am truly saddened that the CC intends to move forward with a Progressive Business Tax (PBT) Ballot Measure that is profoundly INEQUITABLE to Mom & Pop housing providers. We have pointed out for months that, for example, the Measure will result in small rental providers with the same gross receipts as a grocer paying 2,800 times more Business Tax!
The current PBT ballot measure does nothing to stem the growing tide of displacement of Mom & Pops, & their renters, from Oakland. The resultant exodus combined with rampant gentrification exacerbates the lack of affordable housing, a major contributor to homelessness.
The CC is unwilling to consider the estimated $5M price tag to help maintain SRPP’s affordable housing yet:
* Plans a 11/22 Ballot Measure for an $850 taxpayer bond, in addition to the currently approved tens of millions of dollars, to purchase and build affordable housing;
* Has accommodated big business by reducing to $23M/year planned increases that would have resulted in $40M/year in the original PBT language; and
The so-called 2019 exemption, for which only a few dozen have qualified in 3 years, will meaningfully address the problem is a sad joke. That “exemption” enabled the City to identify more Mom & Pops who were not aware that accepting contributions to their mortgage from family, friends and low-income renters in a basement or ADU defined them as a “business”, resulting in additional City liens for tens of thousands of dollars going back 30+ years!
Neighbors Defending our Homes Coalition (NDH) questions this Progressive Business Tax (PBT) Ballot language that is profoundly INEQUITABLE to Mom & Pop housing providers. Small Rental Property Providers (SRPPs), for example, with the same gross receipts as a grocer will pay 2,800% more tax!
The current PBT ballot measure does nothing to stem the growing tide of displacement of SRPPs & their renters from Oakland. The resultant exodus exacerbates rampant gentrification, lack of affordable housing, & homelessness.
Pretending the 2019 exemption, for which only a few dozen have qualified in 3 years, will address the problem is a sad joke. That “exemption” enabled the City to target more SRPPs with past contributions to their mortgage from family, roommates and low-income renters in a basement or ADU with fines & liens of tens of thousands of dollars going back 30 years & more.
Yet at the same time the CC:
* Plans a 11/22 Ballot Measure for an $850M taxpayer bond, in addition to the currently approved tens of millions of dollars to purchase and build affordable housing.
* Has accommodated big business by reducing to $23M/year planned PBT revenue increases that would have resulted in $40M/year in the original PBT language; and
* Continues to pass motions about the homelessness emergency.
The CC can fix this policy failure by creating the SRPP Business Class separate from multi-millionaire landlords requested by NDH organizations & individuals. We urge you to do so ASAP!