Running out of options, what new tax could Oakland ask voters to approve?

"But the underlying gap between the city's costs and its revenues has not gone away, and now Oakland voters may be asked to approve a new tax on the ballot next June that would produce an additional $40 million annually. Crucially, city leaders have already claimed the revenue in next year's budget. And while they are likely to promise voters that the tax would fund public safety, IT systems and 911 operations, in reality the money could be spent at the City Council's discretion."

"Oakland has effectively maxed out its ability to tax sales, while longstanding state law limits new property tax increases. Taxing an unstable real-estate market or struggling hotel economy would not be popular options, either. So the city may instead propose a new tax on land parcels, charging owners of single-family homes an additional $224 annually, or about 20% more than the existing rate, which stands at $1,102, per a city report."

Oakland approved a two-year budget but still faces a gap between costs and revenues. The city may seek a new tax on the June 2026 ballot to raise about $40 million annually, and that revenue has already been claimed in next year’s budget. Promised uses include public safety, IT systems and 911 operations, but the City Council could spend the funds at its discretion. Sales tax capacity is nearly exhausted and state law limits new property tax increases. The city may propose a parcel tax charging single-family homeowners about $224 more annually, or a blended levy including smaller services like parking. The ballot measure would require a two-thirds approval, higher than a simple majority.

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