Oakland needs to act now to set a course for the future of our communities as we chart our way through the outbreak of this virus and its consequences. We must protect vital city services and support struggling small businesses by modernizing our local tax structure so that it is fair to everyone.
Now, more than twenty years old, the business tax in Oakland is outdated and fundamentally unfair.
- Oakland is the only major city in California that does not have a progressive business tax.
- This means all businesses in Oakland pay the same percentage of tax, no matter how much money they bring in.
- Small business, many of them owned and run by women and people-of-color, pay the largest portion of the money brought into the City by the gross receipts tax.
- The city does not use the national standard for business classification and the system has administrative loopholes that allows big businesses to pay even less in taxes.
- It currently has loopholes for new buildings in Oakland.
Currently, a small retailer in Oakland pays more in gross receipts taxes than a similar retailer in San Francisco.