Measure W Vacant Property Tax Implementation Ordinance and

Measure W Vacant Property Tax Implementation Ordinance and Administrative Regulations City of Oakland Finance Department Public Outreach Session Oakland City Hall June 6, 2019, 6 pm

Project Team City of Oakland Finance Department Public Outreach Sessions -Vacant Property Tax City Department of Finance SCI Consulting Group (Tax Consultants) Katano Kasaine John Bliss Margaret O’Brien Blair Aas Huey Dang Chris Coulter Carmen Mac Maria Garcia-Adarve Jose Segura Chris Le Andrew Best Terra Realty Advisors, Inc. (Real Estate Consultants) Scott Sheldon Tim Fitzpatrick 2

Tonight’s Objectives Overview of Vacant Property Tax and Allowable Exemptions Overview of Implementation Process and Tentative Timeline City of Oakland Finance Department Public Outreach Sessions -Vacant Property Tax Receive Public Input No decisions tonight on specific property cases or policies. 3

About Measure W City of Oakland Finance Department Public Outreach Sessions -Vacant Property Tax Approved by City voters on November 6, 2018 with 70% support Annual tax on vacant property for 20 years Purpose To raise revenue necessary to support and fund services for homeless people and affordable housing, and related programs. Reduce the number of Oakland properties that are kept vacant and undeveloped. Reduce blight, crime, and illegal dumping. 4

Implementation Process Develop Administrative Regulations • Method for determining and identifying the use and vacancy status of City parcels • Exemption application and petition procedures Parcel Research and Mailing of Notice • City to identify likely parcels subject to the tax • City to mail notice to owners of property likely subject to the tax with information regarding possible exemptions and the petition process City of Oakland Finance Department Public Outreach Sessions -Vacant Property Tax Exemption Applications and Petitions • Application and petition forms made available • Applications and petitions received • Applications and petitions approved or denied Levy of the Vacant Property Tax • Final tax roll prepared • Tax submitted to County Tax Collector to be placed on the 2020 -21 property tax bill 5

Tentative Timeline City of Oakland Finance Department Public Outreach Sessions -Vacant Property Tax Jun. 2019 Public Input Sessions (3) Sept. 2019 Draft Implementation Ordinance and Administrative Regulations Presented to (2) City Committees Oct. 2019 Council adoption of Implementation Ordinance and Administrative Regulations Nov. / Dec. 2019 Notice and exemption information mailed to property owners Mar. 2020 Exemption applications and petitions due to City Spring 2020 Exemptions applications and petitions review Aug. 10, 2020 Tax levies submitted to County Treasurer-Tax Collector for Tax Year 2020 -21 6

What is a Vacant Parcel? City of Oakland Finance Department Public Outreach Sessions -Vacant Property Tax In use LESS THAN fifty (50) days in a calendar year 1. A parcel of land, whether undeveloped, residential, or non-residential (including multifamily residential) 2. A condominium, duplex, or townhouse unit under separate ownership 3. A parcel of land where ground floor commercial activities are allowed but vacant Implementation ordinance will establish a method for determining and identifying the use and vacancy status of each parcel of real property in the City. 7

Special Tax Rates City of Oakland Finance Department Public Outreach Sessions -Vacant Property Tax Property Type Annual Maximum Special Tax Rate Residential $6, 000 per parcel Condominium, duplex, or townhome unit under separate ownership $3, 000 per vacant residential unit Nonresidential $6, 000 per parcel Parcel with ground floor commercial activity allowed but vacant $3, 000 per parcel Undeveloped $6, 000 per parcel * Real property wholly exempt from ad valorem tax not subject to the vacant property tax. 8

Exemptions City of Oakland Finance Department Public Outreach Sessions -Vacant Property Tax Very low-income owners Low-income senior owners Disabled owners Non-profit organizations Owners who have submitted substantially complete application for project approval that has not yet received approval Owners with entitlement approvals who need more time to complete their project can apply for a two-year exemption Owners of property for which an active building permit application is being processed by the City Owners of property under construction with an active building permit 9

More Exemptions City of Oakland Finance Department Public Outreach Sessions -Vacant Property Tax Owners for whom paying the tax would constitute a financial hardship Owners who are unable to develop their parcel due to a demonstrable hardship that is not financial Owners who can’t develop their property due to an exceptional circumstance, such as damage by a natural disaster or other physical condition 10

City of Oakland Finance Department Public Outreach Sessions -Vacant Property Tax Public Input Welcome and Appreciated Written comments can be emailed to: vacantpropertytaxinquiry@oaklandca. gov No decisions tonight on specific property cases, circumstances, or policies. 11