Oakland needs to raise $40 million. Is a new tax the answer?

Oakland approved a two-year budget with cuts to vacant positions and tightened spending but still faces a $265 million projected shortfall. The City Council seeks $40 million in additional annual revenue and is beginning polling for a potential tax measure for the June 2026 ballot. Staff identified few viable tax options, with a new parcel tax the likeliest choice. Parcel taxes already provide $351 million in dedicated funding. Proposed increases would raise single-family parcel taxes from $1,101 to $1,325 and would boost other parcel rates accordingly. Other tax increases were deemed impractical alone.

"On Tuesday, Oakland Budget Administrator Bradley Johnson told members of the City Council that the city is in the early stages of seeking a polling company to survey residents about a possible tax measure that could appear on the June 2026 ballot. Johnson also presented the council's Finance Committee with a list of tax options. But as he noted, "Not many of them are viable.""

"These account for $351 million of the city's total budget in the current fiscal year. Oakland could generate the additional $40 million it needs with a new parcel tax on single-family homes, increasing the total amount Oaklanders pay on parcel taxes from $1,101 to $1,325. The rate on multi-family homes would increase from $842 to $995.09, and on non-resident parcels from $1,031 to $1,255."

Read at The Oaklandside