Measure C, which Oakland voters will weigh in on at the June 2 primary election, aims to lighten the load for small and new enterprises in the city.<\/p>\n
Called the Oakland Business Relief Program, Measure C would give small businesses \u2014 those grossing under $1 million annually \u2014 a year off from paying the city\u2019s business tax in 2027. And brand new businesses, small and large, would get to skip paying up to $1 million in taxes their first year.<\/p>\n
The City Council voted unanimously to place the measure on the ballot. It needs a simple majority to pass in June.<\/p>\n
\u201cThese are the kids of ground-level businesses that drive foot traffic and promote neighborhood vibrancy,\u201d said councilmembers Zac Unger and Janani Ramachandran and Mayor Barbara Lee in a statement about the measure when they introduced it in November<\/a>.<\/p>\n If Measure C passes, the council could decide to extend it, giving the same businesses additional tax breaks for up to three more years.<\/p>\n Decker said he\u2019d support the measure \u2014 especially the incentive for new businesses in corridors that haven\u2019t seen many new shops open lately, like the stretch of Broadway where his shop is.<\/p>\n \u201cAnything to help us out,\u201d he said. But he called the potential tax break more of a \u201cmoral win\u201d than a life-changing financial victory.<\/p>\n How many Oakland businesses would benefit from Measure C, and what would happen to the city budget?<\/p>\n Numerous types of businesses would be eligible for the one-year tax relief, including grocers, restaurants and bars, retail stores, entertainment businesses, personal services, and manufacturers. Those not eligible include hotels, cannabis businesses, landlords, utility companies, and more.<\/p>\n The city estimates that 12,000 existing businesses could claim the temporary tax break, plus others that will open their first locations in Oakland in 2027.<\/p>\n One downside is the city would lose approximately $2.2 million in revenue if the measure passes. Oakland would also spend $20,000 notifying businesses of the new rules.\u00a0<\/p>\n This amount represents a fraction of the total money the city brings in from taxing businesses. In the 2024-2025 tax year, the city collected about $130 million in business tax revenue.<\/p>\n But business tax revenue goes into the city\u2019s general fund, which has seen big deficits in recent years leading to painful cuts<\/a>. The largest chunk of that fund goes toward paying salaries and benefits for city employees \u2014 primarily police officers, firefighters, public works employees, and other service providers.\u00a0<\/p>\n Neither of the city\u2019s largest worker unions, SEIU 1021 and IFPTE 21, have taken a stance on Measure C yet. The city has also not published official pro and con arguments.<\/p>\n Another June 2 ballot question, Measure E, proposes a new parcel tax that would raise $34 million annually to patch the budget gap.<\/p>\n Business tax rates in Oakland are determined through complex formulas and differ depending on the type of company or service. For example, a restaurant that grosses $700,000 in a year pays $630 in annual city business taxes, whereas an entertainment company making the same amount pays $2,940. The city has an online calculator<\/a> to help owners estimate their costs.<\/p>\n Previously, businesses of all sizes had the same tax rate \u2014 like a small hotdog shop making under $1 million or a big, fancy restaurant making much more. In 2022<\/a>, voters approved a \u201cprogressive business tax\u201d for Oakland, charging higher-grossing businesses at a higher rate. This change was expected to yield an additional tens of millions for the city annually.<\/p>\n But a recent audit found that Oakland failed to collect<\/a> a lot of this money. The report was prompted by concerns from councilmembers and city unions that Oakland might have been leaving tens of millions on the table. However, the city\u2019s attempts to rectify that failure has also caused criticism from business owners<\/a> who say they\u2019ve been hit with fines and late fees even though they weren\u2019t notified of their tax obligations in the first place.<\/p>\n Small businesses embrace Measure C but say it\u2019s not enough<\/p>\n Several business owners we spoke with shared tattoo artist Decker\u2019s feelings about Measure C. They welcome a measure that brings any sort of relief, but said one year off their city taxes isn\u2019t all they need to survive.\u00a0<\/p>\n Across the street from the tattoo parlor, Hairpin & Strop<\/a> owner Nick Slick said he\u2019d support the tax break, \u201cconsidering this economy and how everyone is trying to hang on.\u201d<\/p>\n He recently moved his retro-style barber shop from Grand Avenue \u2014 where it was called Slick & Dapper \u2014 to Broadway. At the old location, where the shop operated for over a decade, break-ins had become \u201cconstant\u201d and issues arose with the landlord.\u00a0<\/p>\n The shop, which Slick and his stylists believe is the only trans-owned salon in Oakland, pays $600 or $700 a year in business taxes. Avoiding that for a year would be nice, he said; it would cover a couple months of PG&E.\u00a0<\/p>\n \u201cI\u2019d feel a little more seen by the city,\u201d Slick said.<\/p>\n The five or so stylists at the shop are all independent contractors who rent booths from Slick, so they\u2019d also benefit from the tax break.\u00a0<\/p>\n But getting some relief on parking costs would be even more helpful, Slick said. The shop doesn\u2019t have a parking lot and Slick and his staff don\u2019t have special parking permits, so he pays metered parking all day at work.<\/p>\n Down in Old Oakland, Viviana Rodriguez-Smith of E 14 Gallery<\/a> has similar feelings about the city\u2019s business climate and what the tax relief could mean.<\/p>\n \u201cIt\u2019s not a lot for small businesses, but anything is helpful,\u201d she said.\u00a0<\/p>\n The gallery and shop, which showcases local artists and artists of color, has operated on 9th Street for about a decade.<\/p>\n Running the business since the pandemic has been especially challenging. The COVID-19 crisis decimated foot traffic, forced a temporary closure, and led to an increase in bipping that scared customers away from the area, said Rodriguez-Smith.<\/p>\n The gallery owner worries she\u2019ll \u201chave to face reality\u201d soon, but the prospect of closing weighs heavily on her. The types of artists she works with have a hard time getting in the door at other galleries, which often require impressive resumes, a catch-22 for a new artist seeking their first show.<\/p>\n At E 14 Gallery, entry is predicated on \u201cquality of the work and your passion as an artist.\u201d The art selected by Rodriguez-Smith reflects Oakland\u2019s values, she said: \u201chistory, culture, resistance.\u201d\u00a0<\/p>\n Shoppers can pick up a print of a local icon by Oakland artist Shomari Smith<\/a>, Black Panther Party art by Emory Douglas<\/a>, Ghanaian jewelry, children\u2019s books, and tote bags and keychains repping Fruitvale and Jingletown and, of course, E. 14th Street \u2014 also known as International Boulevard.\u00a0<\/p>\n Like shop owners in many commercial corridors, those in Old Oakland have recently formed a merchants\u2019 association, to support one another and the community. Beginning in May, they\u2019ll have fourth-Friday \u201csummer strolls,\u201d shutting the street down and bringing in live music.<\/p>\n Measure C wouldn\u2019t only support existing businesses; it would also try to entice new ones to open without an immediate tax burden.<\/p>\n \u201cOakland has a lot to offer,\u201d said Barbara Leslie, CEO of the Oakland Chamber of Commerce<\/a>, which supports the measure. \u201cIf we can provide a better value for businesses considering us versus another jurisdiction, we\u2019re letting them know they\u2019re welcome here.\u201d\u00a0<\/p>\n![\"Hairpin](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/04\/Hairpin-Strop.jpg\")
Hairpin & Strop on Broadway is reportedly Oakland\u2019s only trans-owned barber shop. Credit: Natalie Orenstein\/The Oaklandside<\/p>\n![\"Viviana](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/04\/Viviana-Rodriguez-Smith-E-14-Gallery.jpg\")
Viviana Rodriguez Smith owns E 14 Gallery on 9th Street. Business has been tough since the pandemic. Credit: Natalie Orenstein\/The Oaklandside<\/p>\n