Oakland may impose a new tax on landlords to fund homelessness

9 Replies

If this passes , I could see other cities getting the same idea . I have never heard of such a tax and it would set a bad precedent . This Councilwoman says landlords are “raking in cash “ .. in Oakland where cap rates are super low these days .. if one can cash flow at all .. Once they get 1% of landlords revenue I could see it going up to 2% ,3% in the next years . On the related note San Francisco is also proposing an additional tax on businesses for the homeless . https://www.cnbc.com/2018/07/17/san-francisco-to-consider-tax-on-companies-to-help-homeless.html —— OAKLAND — As the Bay Area struggles with an alarming homelessness crisis, voters may soon decide whether to force Oakland’s biggest landlords to pay up to help house the city’s most vulnerable residents. Oakland Councilwoman Rebecca Kaplan wants to impose an extra 1 percent annual tax on rental revenue that exceeds $200,000, and use that money to fund homeless shelters, help homeless residents secure permanent housing and clean up the sprawling encampments that line many of the city’s sidewalks. The city needs more money to tackle the problem, and collecting it from Oakland’s biggest-earning landlords makes sense, Kaplan said. Rising rents are pushing people out of their homes, but at the same time, landlords are raking in cash, she said. “We’re capturing revenue where it is,” Kaplan said, “and we’re capturing the revenue that has a relationship to the problem of homelessness.” https://www.mercurynews.com/2018/07/17/proposed-landlord-tax-would-raise-money-to-house-oaklands-homeless/

Kaplan emphasized that the tax would not target Oakland’s “mom and pop” landlords — just 5 percent of the city’s landlords make more than $200,000 a year. Currently, all landlords in Oakland pay a 1.39 percent business tax on their rental revenue. Kaplan originally proposed taxing the owners of vacant buildings to raise money for homeless services, but she determined it would be easier to tax rental revenue that exceeds $200,000, because the city already has a framework in place for collecting business taxes from landlords.

Wonder how that 200k is calculated...

@Matt K. Yeah huge difference between 1% on rental income versus 1% on net .

Also won’t landlords just end up raising rents to make up for the tax ? I believe Oakland has some rent of rent control like L.A and SF but not sure the details on it .

Originally posted by @Joseph M. :

Matt K. Yeah huge difference between 1% on rental income versus 1% on net .

Also won’t landlords just end up raising rents to make up for the tax ? I believe Oakland has some rent of rent control like L.A and SF but not sure the details on it .

 I want to say you can't really raise it enough to make much of a difference. Oddly enough the lady proposing this moved into a condo I used to rent long time ago in Oakland lol after I moved out.

More CA idiocracy. Unfortunate, but not a surprise.

The more ignorant laws the stupid politicians pass in CA and a few other states, the better it is for those of us operating in relatively business friendly states as jobs and residents continue to flee those anti-business locations.

“You cannot legislate the poor into prosperity by legislating the wealthy out of prosperity. What one person receives without working for another person must work for without receiving. The government cannot give to anybody anything that the government does not first take from somebody else. When half of the people get the idea that they do not have to work because the other half is going to take care of them and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for that my dear friend is the beginning of the end of any nation. You cannot multiply wealth by dividing it.”
-Adrian Rogers
This is just the “beginning” of how many more to come will think. What you allow will continue, I’ll say that again, what you allow will continue. There’s no guarantee that this will help the homeless population, or even if the homeless will willingly accept this and try to make their situation better. This is wrong in every way possible.
That being said, I do not see the to abandonment of helping homeless or less fortunate as the answer either. But, charging someone who is financially making a difference with their income(rental housing) to their community in the first place is totally wrong and people in Oakland should put their foot down now to stop this before it gets out of hand worse then now.

This is interesting...there is a Oakland Councilwoman that is proposing a city loan program to help 'cash strapped' landlords evict tenants... Oakland is like L.A where you have to pay thousands if you 'displace' a tenant. It costs from $6500 + in Oakland.  Wonder if they'll ever just decide to let the market do it's thing instead of 'controlling' privately owned housing. 

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The Oakland City Council is scheduled Tuesday to decide on a resolution proposed by Councilmember Lynette Gibson McElhaney that would establish a city loan program to help “distressed low-income homeowners” evict their tenants when the landlord or relative wants to occupy the property.

Under this proposal, co-sponsored by Councilmember Rebecca Kaplan, the city would set aside $300,000 “to make available no-interest loans” to “cash-strapped” landlords to help them pay city-required relocation payments to tenants they are evicting.

http://www.oaklandpost.org/2018/07/06/councilmembe...

Originally posted by @Joseph M. :

The Oakland City Council is scheduled Tuesday to decide on a resolution proposed by Councilmember Lynette Gibson McElhaney that would establish a city loan program to help “distressed low-income homeowners” evict their tenants when the landlord or relative wants to occupy the property.

Under this proposal, co-sponsored by Councilmember Rebecca Kaplan, the city would set aside $300,000 “to make available no-interest loans” to “cash-strapped” landlords to help them pay city-required relocation payments to tenants they are evicting.

http://www.oaklandpost.org/2018/07/06/councilmembe...

Oakland has quite a robust second mortgage business. The city generally will not re-subordinate, meaning you've got to pay off a 0% interest rate loan to refinance....

#CaliforniaPolitics

The liberals already want the top 1% to pay for the rest of the world, since apparently having a high income in California (where everything is crazy expensive) makes you Uber rich and can afford it.  This is no surprise to me.  They’re already trying to tax the water we drink... next will be the air we breath.