Oakland is such a greedy city

I put in a bid on an Oakland SFH, and seller countered with an extra disclosure. Obviously this program is not new but this is the first time I heard about it:

https://solar.oaklandnet.com/iop/

It seems reasonable except the $845 fee is unreasonably high. Basically the city wants to remove blight, and it does this by forcing owner to have city inspect property. This seller is a flipper and bought earlier this year. The property is remodeled, permit unlikely. In Sept they received a notice from city that this property has been identified as one of those covered by this program, so seller had 30 days to register. Came October and 30 days passed, so city start charging a daily citation:

  • first day: $100
  • second day: $150
  • third day: $250
  • every day after the third day: $500

After only 12 days seller has racked up a fine of $5000. Now from the letter it seems this is the max cap so seller has another 30 days for pay for it and register the property. If seller continues to ignore then it will be another $5000 in 12 days.

Overall Oakland just gives you the impression that it tries to grab revenue at every opportunity it can get. The city transfer tax is so high compared to other cities. The garbage rate has 20% “commission” for the city built into it. Oakland also charges business tax on residential rents collected that most other cities do not. Every new rental unit they charge a $91 registration fee that even SF does not charge. Starting from 2017 the per-unit rent adjustment program (why they call rent control rent adjustment is beyond me) is going up from $30 to $68 which does not seem to correlate to the rate of inflation very well. It really makes you wonder where all this money is going to …

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Forgot to add that Oakland property tax rate is 1.3508% before special assessment, so for a $100k tax base the prop tax bill comes out to be ~$2300. If you have a million dollar property in Oakland what will come to your mind when it’s time to pay property tax.

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Looks like you can avoid the registration fee by getting a minor permit…Looks like the seller was lazy and uninformed…tax shown should be $1350, not $2300…

Oakland is following in the footsteps of SF. There are so many rules to follow and so many fees/taxes to pay. Everything cost more in Oakland. The water and trash bills are crazy high. But yet I have 2 properties in Oakland… :confused:

$1350 is before special assessments of about $1000. The absolute amount of the special assessment is in line with other counties (like Santa Clara), but the relative percentage is very high for a much smaller tax base.

Are they trying to use regulation and tax to gentrify Oakland? How can the low income homeowners afford all these?

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