By completing this form, I express my support for Council President Nikki Fortunato Bas’ and Council Member Fife’s proposal for an equitable and progressive business tax structure in Oakland.

The Fair Share Business Tax proposal will reform the current flat-rate business tax in Oakland, which requires small businesses to pay the same tax rate as large corporations earning tens of millions in gross receipts.

This status quo is highly inequitable, with Oakland’s smallest businesses disproportionately bearing the burden of taxation. In fact, 93% of all Oakland businesses earn less than $1 million in gross receipts annually. However, while their combined revenue comprises only 18% of taxable gross receipts citywide, together they paid double their share – 34% – of all business taxes in FY 2019-2020. This inequity is further demonstrated by the fact that the remaining 7% of businesses in Oakland – those earning more than $1 million in annual gross receipts – comprise 82% of gross receipts citywide, yet paid far less than their share, only 66% of total business taxes.

This progressive business tax proposal would increase fairness and equity by updating the tax to a tiered-rate structure, where smaller businesses pay less taxes, while larger businesses – especially the largest multi-million dollar corporations – pay more. The proposal would not increase taxes paid by homeowners and renters.

97% of Oakland businesses will see their taxes stay the same or go down. Over 20,000 small
businesses – 39% of all businesses in Oakland — will receive a tax cut. Only the top 3% of the largest businesses in Oakland will see tax increases. These businesses collectively earn billions in revenue each year and their profits have skyrocketed during the pandemic.

The increased resources would support small businesses like ours that need it most through tax relief and improved city services to address challenges that impact our storefronts and streets, such as homelessness, illegal dumping and trash clean up, street and sidewalk maintenance, small business assistance, fire safety, and community solutions that keep us safe and healthy.

All of Oakland’s businesses and residents will benefit from expanded and improved city services and a new more equitable business tax structure that raises up to $40 million more per year.

“Everyone in Oakland city government agrees: Oakland needs to update its out-dated, over twenty year old regressive tax structure. Well-resourced and well-run cities with clean and safe streets, where people have stable and dignified housing, and where kids, families, and elders have access to rec centers and libraries—these are the cities where our communities can thrive, and that are attractive for businesses and workers,” said Council President Nikki Fortunato Bas.

We join Oakland City Council President Nikki Fortunato Bas, Councilmember Carroll Fife, community members, and small businesses in support of the Progressive and Equitable Business Tax to provide tax relief for small businesses including retailers, restaurants, grocers, wholesalers, personal services firms and others, and create a tax rate structure where larger businesses pay their fair share and make deeper investments in our city.

Learn more at www.oaklandca.gov/resources/progressive-business-tax-proposal.