High property taxes in Oakland, California leave residents frustrated.
Residents of Oakland, California, Demand Better Services Despite High Property Taxes
Despite paying higher property taxes than many other areas in California, some Oakland, California, residents say the services received are not reflective of the money collected.
With an average property tax of approximately 1.38 percent, only a handful of cities’ rates are higher.
“Our taxes are higher than in cities that are doing good,” longtime Oakland resident Gerald Walker told The Epoch Times. “It doesn’t make any sense. Why are our streets so bad, and why don’t we have money for the police if we’re paying all this money in?”
With crime impacting the area in what is described as unprecedented levels of robberies, home invasions, and carjackings, some taxpayers and city officials are at odds with how to proceed—with a recent, missed opportunity to secure millions of dollars in grant money for police funding at the center of the debate.
Property taxes typically fund local services, like street repairs, police and fire department allocations, and support for schools, libraries, and parks.
“We’re out here wondering why our schools are failing, our city is trashed, and nobody seems to care,” Mr. Walker said. “They keep taking our money, but we have nothing to show for it.”
Tax rates vary and are determined by property location and which school district is nearby. Districts also levy taxes based on measures and bonds—for community projects.
“Rates can vary throughout the city, because different districts serve the area,” Trina Caballero, tax analysis specialist with the Alameda County Tax Assessor, told The Epoch Times by email Sept. 21. “Levying districts are responsible for calculating those amounts.”
Such differences account for a range from 1.19 to 1.44 percent in the city, with the majority of properties falling in districts charging approximately 1.38 percent.
Bonds for the Oakland Unified School District and Peralta Community College account for more than .14 percent, with .02 percent for public transportation and parks, while the city adds .2 percent to the tax, according to city tax records.
Some exemptions exist for low-income homeowners, seniors, nonprofits, religious organizations, schools, and others.
Housing affordability remains an issue in Oakland, with an average home price of more than $800,000—down nearly 9 percent over last year, according to online real estate listing firm Zillow.
Homeowners purchasing at such a price would pay approximately $11,000 annually in property taxes and special assessments, calculated at the average tax rate.
All other cities in Alameda County—where Oakland is located—have lower property tax rates, including Berkeley—averaging 1.21 percent—and Alameda at 1.18 percent.
Purchasing a similarly priced home elsewhere in the county would save a homeowner approximately $1,600 annually in property taxes, as compared to Oakland, based on current rates.
Estimated to account for 4 percent of homeowners’ annual income in Alameda County, property tax contributes to the housing affordability dilemma, according to experts.
Compared to Oakland, most other areas in California offer significantly lower property tax rates—including Irvine in Orange County at just over 1.03 percent and Santa Barbara and Los Angeles each hovering near 1.2 percent.
On the other end of the spectrum, Riverside County in Southern California is home to a wide range of tax rates, including the highest in the state—Desert Hot Springs at nearly 2.3 percent.
Homeowners in California are protected from property tax increases by Proposition 13—passed by voters in 1978 limiting the tax to 1 percent of sales price plus up to 2 percent annual increases—but subsequent measures passed by voters can increase taxes for all homes in the area, typically by a fraction of a percentage point for school or local infrastructure bonds.
How can Oakland officials address the lack of accountability and transparency in the allocation of tax dollars?
5 percent of the property tax rate, while other districts levy additional taxes for specific purposes, such as parks or infrastructure improvements.
Lack of Accountability
While property owners understand that taxes are necessary to fund essential services, they are frustrated with what they perceive as a lack of accountability and transparency regarding how their tax dollars are being used.
“We have no idea where our tax money is going,” said Oakland resident Angela Johnson. “There needs to be more transparency and oversight to ensure that the money is being allocated appropriately and effectively.”
Residents argue that despite the high tax rates, they continue to experience a lack of basic services in their neighborhoods. For example, many roads in Oakland are riddled with potholes, making driving hazardous and damaging residents’ vehicles.
Furthermore, the city’s crime rate has reached alarming levels, with frequent reports of thefts, burglaries, and violent crimes. Residents feel that adequate police funding is crucial to address these issues, but they question why the city has failed to secure grant money that could have bolstered the police force.
Missed Opportunities
One of the most significant points of contention is the recent missed opportunity to secure grant money for police funding. Oakland failed to apply for retail theft grants worth millions of dollars, which could have provided much-needed resources to combat the rising crime rate.
This mistake has sparked outrage among residents and community leaders who believe that the city’s negligence has resulted in a direct failure to prioritize public safety.
Community leaders held a press conference under the banner “Oakland Got Nothing,” drawing attention to the missed opportunity and calling for greater accountability from city officials. They assert that the consequences of this oversight are being felt by Oakland residents who are living in fear and are demanding immediate action.
The Way Forward
To address the concerns raised by Oakland residents, city officials must prioritize transparency and accountability in the allocation of tax dollars. Establishing clear guidelines and mechanisms for tracking how funds are used will help build public trust and ensure that money is allocated where it is most needed.
Additionally, the city should explore alternative sources of funding to supplement property taxes. This could include pursuing partnerships with private businesses, seeking state or federal grants, or implementing targeted taxes for specific purposes.
Furthermore, the city must actively engage with residents and community organizations to assess their needs and priorities. By involving the community in decision-making processes, city officials can better understand the issues and concerns that require immediate attention.
Ultimately, the residents of Oakland expect their tax dollars to
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