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File Number: 18-572 <br />When considering only charter cities in Alameda County, San Leandro will have the lowest rate in <br />the County once Hayward’s Measure T goes into effect. <br />Overview of Vacant Property Tax <br />Another type of revenue measure that the City Council expressed interest in exploring would be a <br />vacant property tax. Such a tax recently appeared on the Cities of Oakland and Richmond’s <br />ballots as part of the November 2018 election. Known as Measure W in Oakland, this measure <br />required a two-thirds supermajority for passage and was successfully endorsed by 68.65% of <br />voters. Measure T in Richmond ultimately received 58% support from voters and therefore failed <br />to pass due to its not surpassing the required two-thirds threshold. These taxes were structured to <br />impose a special tax on properties that are deemed by the cities as vacant. In both cities, the <br />proposed rate would range between either $3,000 per year or $6,000 per year depending on the <br />type of property and when it was developed deemed vacant. Because Oakland’s Measure W is <br />the first example of such a tax being adopted anywhere in the state, additional analysis is <br />required to determine the level of funding that could be collected from such a tax if it were <br />adopted in San Leandro. Additionally, the administration of such a tax would be complex as it <br />would require an analysis of individual properties to determine their current status, and would <br />inevitably require due process rights for property owners seeking to contest determinations of <br />vacancy status. <br />Steps involved in Bringing Forward a Successful Revenue Measure <br />As outlined above, parcel taxes by nature are significantly more complicated than sales tax or real <br />property transfer tax measures, and are more challenging to pass due to the two-thirds <br />super-majority threshold. As a matter of best practice under optimal circumstances, the process <br />for fully exploring any new tax measure(s) should commence approximately one year prior to the <br />targeted election date, similar to the approach that was executed in advance of Measure HH. <br />Such a timeline is recommended so that the viability of the measure may be fully evaluated and <br />explored. A number of important steps that would typically be completed in advance of ballot <br />placement include: <br />·Identifying and hiring a public affairs consultant to guide development of the measure and <br />related procedures and outreach efforts <br />·Identifying and hiring a financial consultant to analyze various parcel tax structures and the <br />anticipated revenues that could be derived from each <br />·Hiring a public opinion research company (a.k.a. a pollster) to develop and execute a <br />telephonic and online survey of likely voters in order to gauge potential public support for <br />the tax measure at a range of rates and durations, as well as to identify related funding <br />priorities <br />·Development and distribution of informational materials and public outreach efforts, e.g. <br />town hall meetings, opportunities for public feedback and identification of concerns, etc. <br />·Development of a draft spending plan and budget priorities list to guide the expenditure of <br />any funds collected from the measure <br />·Development of staff report, ballot language, draft resolution, and ordinance to place the <br />measure on the ballot, along with the City Attorney’s analysis <br />·Opportunities for input and guidance from the Mayor and City Council or City Council <br />Committees (if time allows) before key milestones <br />Page 6 City of San Leandro Printed on 11/13/2018