This measure amends Oakland’s Real Property Transfer Tax Ordinance, allowing the city to tax large financial institutions and investors when they foreclose on properties by eliminating an exemption in the ordinance. Smaller banks with less than $10 billion in assets, homeowners and companies that convert offices to affordable housing would continue to be exempt. The city estimates this tax would raise up to $13 million a year. Passes with a majority vote.
Yes Argument
Extending this existing real property transfer tax to lenders and real estate investors would close a loophole that benefits large corporations and big banks. It could create an incentive for financial institutions to work with property owners facing foreclosure. It would also create a counter-cyclical revenue stream during economic downturns, bringing millions of dollars a year to Oakland’s general fund.
No Argument
This measure lacks the due diligence and thorough implementation plan needed to prevent unintended economic consequences for Oakland. The exemptions are vague and could create loopholes, allowing predatory lenders or unscrupulous investors to evade the tax. Oakland should take more time to fully vet this plan before putting it to voters.
Key Supporters
In Support
- Rowena Brown, City Council member, Oakland
- Dan Kalb, former City Council member, Oakland
- Charlene Wang, City Council member, Oakland
In Opposition
- Kevin Jenkins, City Council president, Oakland