Oakland may impose a new tax on landlords to fund homelessness

[Joseph M.]

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/