Oakland voters are staring down a straight yes-or-no choice this summer: Do you give many small and brand-new businesses a one-year break from the city’s gross receipts tax, or keep the status quo while City Hall chases down unpaid bills?
That is the core of Measure C, which will appear on the June 2 ballot after the Oakland City Council voted unanimously to send it to voters. Supporters pitch it as a targeted boost for neighborhood storefronts. Skeptics focus on the cost of forgoing revenue at a time when the city is still trying to collect tens of millions in overdue business taxes.
What the measure would do
Measure C would wipe out the city’s gross receipts business tax for one year for qualifying small businesses in 2027. The proposal covers retail, grocers, business and personal services, recreation and entertainment, and manufacturing that report $1,000,000 or less in receipts for the 2027 tax-certificate year.
It also offers a sweetener for expansion: businesses that open new commercial locations in 2027 would get an exemption on up to $1,000,000 in gross receipts, applied to the 2028 tax year.
If voters say yes, the exemption would kick in 10 days after the election results are certified. The City Council would then have the power to extend the program annually for up to three more years, but only with a supermajority vote. As outlined by the City of Oakland.
Budget and scale
To prepare for the possible hit, the council set aside $3 million in the FY 2025–27 budget to cover the program. City staff told councilmembers that this is roughly double what they expect to lose in business tax revenue if all eligible businesses claim the exemption.
In recent years, annual business license revenue has ranged from roughly $101 million to $123 million. A recent review by the City Auditor flagged collection gaps that leave tens of millions of dollars at risk, a backdrop city leaders cited while shaping the tax relief in Measure C. As the Oakland City Auditor found.
Local reactions and examples
On the ground, reaction from small business owners has been mixed.
Premium Tattoo owner Matthew Decker put it bluntly for reporters: “Nothing gets cheaper.” Other owners said even a one-year tax break would make them feel like City Hall actually sees what they are up against, and a local chamber representative argued that clear incentives like this can help Oakland compete with neighboring cities for new businesses. Local reporting has highlighted how the math pencils out for thin-margin operators. Under current rules, a restaurant with about $700,000 in annual sales would pay around $630 in gross receipts tax, while an entertainment company with the same gross receipts would owe roughly $2,940. Those are not life-changing sums, but in a tight year, they are hardly pocket change. As reported by The Oaklandside.
How the vote works and what to watch
Measure C will be decided in the June 2 election. Because it changes the city’s general business tax ordinance instead of creating a dedicated special tax, state rules say it only needs a simple majority to pass. Special taxes generally need two-thirds voter approval, according to the Legislative Analyst's Office.
If voters approve Measure C, the City Council would put the exemptions into effect and could extend them up to three times with a supermajority vote if members decide the program is working as intended. The council resolution to place the measure on the ballot passed unanimously, and the full proposal along with its fiscal analysis is available in the city’s report to council, according to the City of Oakland.
Bottom line
Whichever way the vote goes, Measure C is shaping up as a test of Oakland’s priorities. Backers argue that a short, targeted tax holiday could help keep storefronts open and encourage new businesses to plant a flag in the city. Critics point to the broader backdrop of shaky collections and competing budget demands and question whether this is the moment to give up any revenue.
City staff estimate it would cost about $20,000 to notify businesses about the program if it passes. Business owners and advocates interviewed so far describe Measure C as modest relief, but also as a highly visible signal that Oakland wants neighborhood commerce to stick around and, ideally, thrive. As reported by The Oaklandside.
