Oakland is fining landlords for unpaid taxes but the city never sent a bill

Oakland landlords are facing fines for unpaid taxes, with Beth Berlin-Stephens receiving a $2,257 bill from the city, which includes substantial late fees and penalties. This enforcement stems from a city initiative aiming to recover an estimated $34 million in unpaid taxes accumulated since 2021, largely due to a ransomware attack that disrupted notifications. Berlin-Stephens, who registered her rental unit and reported income correctly, expressed frustration over receiving fines for charges she was not informed about. Councilmember Janani Ramachandran underscored the importance of tax compliance for funding essential city services and criticized the city’s failure to notify landlords. The recently passed budget includes financial support for small businesses, reflecting the city's dual focus on revenue collection and business assistance.

Critics have pointed to the lack of integration between the city's tax collection system and the rental registry as a barrier to compliance. Ramachandran believes the actual delinquent tax amount could be even higher than reported. The city aims to rectify these issues as part of its strategy to address its fiscal crisis.