Finance and Management Committee
September 22, 2026
AGENDA REPORT
TO: Elizabeth Lake FROM: Bradley T. Johnson
Interim City Administrator Finance Director
SUBJECT: Special Revenue Collection Project DATE: August 31, 2026
City Administrator Approval Date:
RECOMMENDATION
Staff Recommends That The City Council Receive An Informational Report From The City Administrator Or Their Designee On The Special Revenue Collection Project, Including Hiring And Activating The Work To Bring In Additional Revenue From Non-Filed Businesses
EXECUTIVE SUMMARY
On March 15, 2025, Councilmembers Ramachandran and Kaplan requested an informational report from the City Administrator or their designee on the Special Revenue Collection Project, including efforts related to hiring and implementing work aimed at generating additional revenue from non-filed businesses.
On November 18, 2025, the Finance Committee received an oral report outlining the status of the Special Revenue Collection Project, including progress on hiring, delinquent Business Tax collection, taxpayer outreach, and initiatives intended to generate additional revenue. During that meeting, Councilmembers Ramachandran and Brown requested a written informational report containing statistical measures to evaluate the effectiveness of the Revenue Management Bureau’s (RMB) efforts.
On April 21, 2026, Councilmember Brown further requested a biannual Business Tax Collection informational report providing key performance indicators, including delinquency rates and the status of revenue generation initiatives.
This report responds to those requests and provides an overview of Business Tax compliance and collection activity, including the 2026 Business Tax renewal rate, delinquent account collection activity, property-related assessments, business discovery initiatives, and taxpayer outreach and education.
Elizabeth Lake (Sep 10, 2026 12:36:32 PDT)
Sep 10, 2026
Elizabeth Lake, Interim City Administrator
Subject: Special Revenue Collection Project
Date: August 31, 2026 Page 2
Finance and Management Committee
September 22, 2026
BACKGROUND / LEGISLATIVE HISTORY
On March 13, 2025, Former Councilmember Kaplan and Councilmember Ramachandran formally requested a comprehensive report detailing the status of staff recruitment efforts and the initiatives undertaken to recover outstanding business tax revenue, including identifying and collecting revenue from non-filing businesses. On April 9, 2025, the items were moved to be presented at the Finance Committee Meeting on November 18, 2025.
On November 18, 2025, Councilmembers Ramachandran and Brown requested a written informational report providing statistical data to measure the effectiveness of the Revenue Management Bureau’s efforts. The first corresponding report was presented to the City’s Finance and Management Committee on April 21, 2026.
On April 21, 2026, Councilmember Brown requested a biannual Business Tax Collection informational report providing key indicators such as delinquency rate and revenue generation project statuses.
ANALYSIS AND POLICY ALTERNATIVES
Business Tax Renewal Rate
For the 2026 Business Tax year, the City currently has 59,116 active Business Tax accounts. Of these accounts, 49,600 have completed the annual renewal process, representing an 83.9% renewal rate.
Accounts that remain unrenewed have been reviewed to determine their appropriate status.
These accounts are advanced through the Business Tax Delinquency process. For collection purposes, the delinquent accounts are separated into two categories; property accounts and non-property accounts due to the process of each category that would need to be undertaken to bring the account into compliance.
Business Tax Accounts Open and Closed
During FY 2025–26, 6,491 Business Tax accounts were opened, and 10,376 Business Tax accounts were closed. Account openings reflect new registrations established during the fiscal year. Account closures reflect businesses that reported ceasing operations or were otherwise identified as no longer operating. Prior to closing an account, RMB staff verifies business cessation through several verification methods, which may include field visits, visual verification of the business location, and direct contact with the business or account holder.
Elizabeth Lake, Interim City Administrator
Subject: Special Revenue Collection Project
Date: August 31, 2026 Page 3
Finance and Management Committee
September 22, 2026
Table A. Open and Closed Business Tax Accounts by Month
Month Opened Accounts Closed Accounts
July 2025 566 141
August 2025 443 375
September 2025 434 370
October 2025 400 3,5451
November 2025 334 490
December 2025 429 822
January 2026 662 770
February 2026 830 771
March 2026 721 855
April 2026 666 1,519
May 2026 527 330
June 2026 479 388
Total 6,491 10,376
Collection of Delinquent Business Tax Accounts
Between September 2025 and June 2026, RMB mailed 14,659 delinquency notices for outstanding Business Tax obligations. Of the accounts associated with these notices, 9,316 were non-property accounts and 5,343 were property-related accounts.
Because Business Tax accounts may contain outstanding obligations for multiple tax periods, accounts count presented in this section reflect collection and compliance activity occurring during the reporting period and should not be understood as representing a single tax-year delinquency population.
Non-Property Accounts
The 9,316 non-property accounts reflect the population subject to delinquency noticing and collection activity during the reporting period.
Through continued account review, taxpayer outreach, field activity, and collection efforts, the non-property inventory was initially reduced to 5,183 accounts requiring additional collection or compliance activity and has since been further reduced to 3,517 outstanding accounts.
As part of these collection and compliance activities, 927 accounts paid their outstanding obligations, 650 accounts were closed, and 78 accounts were referred to the Citywide Collections Division for additional collection activity.
1 The higher number of account closures during October 2025 and April 2026 reflects increased field and telephone verification efforts by RMB staff. These efforts identified businesses that had ceased operations but remained active in the Business Tax database, resulting in the closure of those accounts.
Elizabeth Lake, Interim City Administrator
Subject: Special Revenue Collection Project
Date: August 31, 2026 Page 4
Finance and Management Committee
September 22, 2026
The remaining 3,517 non-property accounts represent approximately $6.46 million in outstanding Business Tax assessments and remain subject to continued collection and enforcement efforts.
Chart A. Non-Property Accounts
Property Accounts
Property-related Business Tax assessments follow a separate collection process that includes the imposition of a lien and placement of outstanding balances on the Alameda County Secured Property Tax Roll.
RMB brought delinquent assessments before the City Council on January 20, 2026, and July 7, 2026, for authorization to impose liens and place eligible assessments on the FY 2026–27 Alameda County Secured Property Tax Roll.
Of the 4,443 parcels authorized by the City Council for collection through the secured property tax process, 1,596 parcels were transferred to the Alameda County FY 2026–27 Secured Property Tax Roll on August 10, 2026, representing approximately $5.41 million in outstanding Business Tax assessments.
Elizabeth Lake, Interim City Administrator
Subject: Special Revenue Collection Project
Date: August 31, 2026 Page 5
Finance and Management Committee
September 22, 2026
Table B. Property Accounts
Property Accounts January 20, 2026
Property Use Number of
Accounts Total Value of Liens
Multi-Residential, 2-4 Units & Mobile 883 $1,441,551.49 Single Family Residential 971 $1,094,725.96
Commercial 170 $896,445.73
Multi-Residential, 5 or More Units 152 $1,607,307.43
Industrial 61 $346,949.48
Improved Commercial 8x Series 32 $196,544.01
Total 2269 $5,583,524.10
July 7, 2026
Property Use Number of
Accounts Total Value of Liens
Multi-Residential, 2-4 Units & Mobile 938 $1,019,680.77 Single Family Residential 812 $1,138,966.71
Commercial 182 $970,508.66
Multi-Residential, 5 or More Units 55 $297,877.68
Industrial 159 $884,392.25
Improved Commercial 8x Series 28 $130,009.53
Total 2174 $4,441,435.60
Total 4,443 $10,024,959.70
Business Discovery
As part of its ongoing business discovery efforts, RMB uses various data sources to identify properties that may be operating as unregistered rental businesses. Indicators include differences between property and owner mailing addresses, the absence of a homeowner's exemption in Alameda County property tax records, third-party referrals, and publicly available rental listings such as Airbnb or Craigslist.
On September 11, 2026, RMB mailed approximately 6,800 notices to owners of multi-unit properties that were not registered in the City's Business Tax database and were not identified as vacant properties. Property owners were asked to confirm the use of their property and, where applicable, complete the Business Tax registration process by October 5, 2026.
Following the response period, RMB will review responses and conduct additional follow-up on properties requiring further action.
Elizabeth Lake, Interim City Administrator
Subject: Special Revenue Collection Project
Date: August 31, 2026 Page 6
Finance and Management Committee
September 22, 2026
Outreach and Engagement
To further educate taxpayers about their City of Oakland Business Tax obligations, the RMB expanded its outreach efforts through targeted media campaigns, direct taxpayer communications, and participation in community events. These efforts were designed to increase public awareness, promote voluntary compliance, distribute educational materials, and provide taxpayers with opportunities to speak directly with RMB team members about Business Tax registration, filing requirements, payment options, and other requirements.
In January 2026, RMB provided Business Tax renewal assistance at several senior centers to assist senior taxpayers with completing their annual renewals. RMB also participated in the Oakland Chinatown Lunar New Year Bazaar, providing Business Tax information and responding directly to taxpayer questions.
In March 2026, RMB mailed approximately 75,000 informational postcards to property owners who were not registered in the City's Business Tax database. The mailing was intended to inform property owners of potential Business Tax registration requirements and encourage voluntary compliance.
In June 2026, RMB participated in LakeFest, where team members distributed Business Tax information.
In August 2026, RMB participated in the Laurel Street Fair and the Outdoor Vendor Support Clinic, continuing its efforts to engage businesses and entrepreneurs directly within the community.
RMB also completed filming of a Business Tax Public Service Announcement (PSA) in partnership with KTOP to further expand public awareness of Business Tax requirements. In addition, RMB has been contacted by Laney College to provide information to future entrepreneurs regarding City of Oakland Business Tax registration and compliance requirements.
Collectively, these activities represent RMB's ongoing effort to complement its compliance and enforcement activities with proactive taxpayer education and community engagement
RELATED PLANNING EFFORTS
This informational report provides the City Council with a routine update on the Revenue Management Bureau’s ongoing efforts to strengthen and streamline the administration of the Business Tax program. The report highlights key activities undertaken to improve the Business Tax process from renewal through delinquency and collection, enhance operational efficiency and taxpayer compliance, and ensure that established expectations for taxpayer outreach, education, and community engagement are being met.
Elizabeth Lake, Interim City Administrator
Subject: Special Revenue Collection Project
Date: August 31, 2026 Page 7
Finance and Management Committee
September 22, 2026
FISCAL IMPACT
There is no direct fiscal impact associated with this report, as it is informational in nature and provides a review of the operational and financial status of the City's Special Revenue Collection Project.
PUBLIC OUTREACH / INTEREST
No outreach was deemed necessary for this informational report beyond the standard City Council agenda noticing procedures.
COORDINATION
This report was prepared in coordination with the Finance Department and the City Administrator’s Office.
RACE AND EQUITY
This report is informational in nature and does not recommend or implement any policy, programmatic, budgetary, or operational changes. Therefore, staff did not conduct a Race and Equity Impact Analysis for this item. Any future recommendations resulting from the evaluation of parking operations alternatives will be evaluated for potential race and equity impacts and brought forward for City Council consideration as appropriate.
Elizabeth Lake, Interim City Administrator
Subject: Special Revenue Collection Project
Date: August 31, 2026 Page 8
Finance and Management Committee
September 22, 2026
Bradley Johnson (Sep 8, 2026 16:18:49 PDT)
ACTION REQUESTED OF THE CITY COUNCIL
Staff Recommends That The City Council Receive An Informational Report From The City Administrator Or Their Designee On The Special Revenue Collection Project, Including Hiring And Activating The Work To Bring In Additional Revenue From Non-Filed Businesses
For questions regarding this report, please contact Nicole Welch, Revenue & Tax Administrator, at (510) 238-7025.
Respectfully submitted,
BRADLEY JOHNSON
Director of Finance
Prepared by:
Nicole Welch, Revenue & Tax Administrator
Revenue Management Bureau