OAKLANDERS MAY HAVE the chance to decide the fate of a business tax break proposal in June if the City Council decides to put it on the ballot.<\/p>\n
Councilmembers Zac Unger and Janani Ramachandran introduced a proposal Thursday to eliminate the gross receipts tax for certain small business classes that don\u2019t gross more than $1 million in sales for 2027.<\/p>\n
It would also eliminate up to $1 million in gross receipts taxes for all businesses opening a new Oakland location in 2027.<\/p>\n
The one-year tax holiday is intended to support local small businesses and encourage new business growth throughout the city and to counter the narrative that Oakland isn\u2019t particularly business-friendly.<\/p>\n
\u201cWe need businesses in our city because they make our streets vibrant and they employ people and they get people spending money and they bring in business tax revenue and none of the things we can do are possible without our business community,\u201d Unger said.\u00a0<\/p>\n
Money for the small business tax breaks \u2014 $3 million \u2014 has already been accounted for in the city\u2019s budget, Unger said.<\/p>\n
\u201cI was on the budget team eight months ago and I set aside money for this so it\u2019s not going to cut services \u2014 the money is already budgeted,\u201d he said.<\/p>\n
The business tax exemptions need voter approval via a ballot measure because the existing business tax rates of between .05 percent and .55 percent of gross receipts were established by voters when they approved Measure T in 2022.<\/p>\n
Gross receipts is the phrase used to describe the total amount of money a business earns before subtracting expenses to calculate profit.\u00a0<\/p>\n
If approved, the tax exemptions will last one year but could be extended for up to three additional years by the City Council.<\/p>\n
\u201cI really want to try to reframe the relationship between City Hall in the business community and let our businesses know that that we support them and we\u2019re going to try and help them get a solid foothold here,\u201d Unger said.\u00a0<\/p>\n
Part of that includes the city\u2019s efforts to reduce crime and make people feel safer, Mayor Barbara Lee\u2019s work to streamline the permitting process, and new initiatives like the business tax breaks, Unger said.<\/p>\n
In a news release announcing the proposals, leaders of the Oakland Chamber of Commerce, the Oakland African American Chamber of Commerce and the Oakland Chinatown Chamber of Commerce all expressed support, as did Lee.<\/p>\n
In order for the proposal to be placed on the June 2, 2026 ballot, the City Council needs to approve doing so.\u00a0<\/p>\n
\u201cThis legislation will prove that Oakland is \u2018open for business\u2019 by providing financial relief to existing small businesses while also meaningfully incentivizing new businesses of all sizes to set up in Oakland,\u201d Ramachandran said. \u201cDoing so will create and sustain jobs, yield new tax revenue, and revitalize business corridors all across the city.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"OAKLANDERS MAY HAVE the chance to decide the fate of a business tax break proposal in June if…\n","protected":false},"author":2,"featured_media":68717,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[389,26566,19155,4249,22372,143,5365,145,144,40723,23415,1694,22375],"class_list":{"0":"post-68716","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-oakland","8":"tag-alameda-county","9":"tag-ballot-measures","10":"tag-business-owners","11":"tag-businesses","12":"tag-janani-ramachandran","13":"tag-oakland","14":"tag-oakland-city-council","15":"tag-oakland-headlines","16":"tag-oakland-news","17":"tag-tax-break","18":"tag-tax-revenue","19":"tag-taxes","20":"tag-zac-unger"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/68716","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=68716"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/68716\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/68717"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=68716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=68716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=68716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}