Measure T | californiachoices.org

My vote

CITY OF OAKLAND—Would amend Oakland's business tax rates to create a progressive rate structure that would impose the highest rates on the highest grossing businesses rather than the current flat tax; businesses which generate more than $1 million in gross receipts would be subject to a tax hike, and the rates would range from 0.05% to 0.55%. Measure T requires a simple majority (50% + 1) to pass.

Fiscal Impact: Would increase Oakland's annual tax revenue by an estimated $20.9 million for municipal services.

Next Alameda County Measure: Measure U

See Endorsements for Measure T

Details

Pro/Con

Pro:

Proponents of Measure T argue that it would raise revenue to fund essential services and support small businesses without raising taxes on homeowners, and that Oakland's services are chronically underfunded. They argue many of Oakland's 20,000 small businesses are owned by women and people of color who currently pay the largest portion under the current system, and a progressive business tax shifts the burden to larger companies and gives small businesses the support they need to recover from the pandemic.

A YES vote on this measure means: Business tax rates in the City of Oakland would be updated to create a progressive rate structure that would impose the highest rates on the highest grossing businesses rather than the current flat tax

Con:

No official argument against Measure T was submitted.

A NO vote on this measure means: Business tax rates in the City of Oakland would not be changed and remain how they are now.

In Depth

Under the City of Oakland's current business tax code, the City imposes business taxes on the holders of business licenses at a fixed rate for each tax class based on the gross receipts or gross payroll of the business. This measure creates a progressive rate structure for business taxes that has the effect of changing Oakland's business tax burden such that companies with lower gross receipts will pay a reduced percentage of total business taxes and companies with higher gross receipts will pay a greater percentage of total business taxes. This measure also would impose a minimum business tax of $60 on most businesses regardless of their gross receipts or gross payroll.

This measure will not change residential rental business tax rates and will not alter Cannabis Tax rates, and the City Council will retain its existing authority to lower Cannabis Tax rates following a public hearing. This measure does not authorize the City Council to amend other business tax rates without voter approval.

This measure updates certain tax classes and tax terminology in the City's business tax code to more closely align them with the classes and terminology used in state and federal tax codes. The measure also ensures that the letters the City uses to classify various types of businesses correspond to the letters used in the tax-rate table in the Oakland Municipal Code, which may make it easier to find the relevant tax rates for each classification of business.

Economic consultants retained by the City's Finance Department estimate that this measure will generate approximately $20.9 million in additional annual revenue, the proceeds of which will be deposited into the City's General Fund. This measure does not have any impact on any other types of taxes other than business license taxes. This measure was placed on the ballot by the Oakland City Council.

Source: City Attorney's Impartial Analysis of Measure T

Voter Resources

City of Oakland Elections Office