Yesterday, the City of Oakland held an election. You could be forgiven for not knowing about it, even if you lived there, and forgetting to pull up at your local precinct.  It was an all mail election.

Four measures were on the ballot, two of which were explicit taxes and the other two were clarification measures. All four passed.

On the revenue side these are important to note as it is yet another city to show that there is no there there on the “Californians won’t stand for any more taxes” mumbo-jumbo.  On the more symbolic than functional side, Prop F, proposed a tax on medical marijuana to fill a budget hole.  It took 80% of the vote.  Pot club owners actually proposed the tax.  The other revenue measure (Prop C) was a simple tourist tax on hotels.  Prop D alters a previous measure to clarify where money will go.

But, on the Prop 13 side, you have Prop H, which passed with 75% of the vote.  It takes a crack at one of the Prop 13 loopholes: gradual corporate shifts in ownership blocking reassessment and transfer taxes. Here’s the relevant description from Oakland City Attorney John Russo:

This amendment will not change the current real property transfer tax (RPIT) rate of 1.5% on transfers of real property within the city limits of Oakland. The measure clarifies that the RPTT applies when changes in ownership or control of corporations and other legal entities transfer ownership of real property that is located in Oakland. “Changes in ownership or control of corporations and other legal entities” includes but is not limited to mergers, consolidations and acquisitions.

In other words, this measure specifically outlines any corporate transfer as a sale for the purposes of a transfer tax. The measure was strongly opposed by the Oakland Metro Chamber of Commerce as, um, not providing predictable revenue.  I don’t what this obsession with “predictability” and hatred of “volatility” is lately, but it is not a sufficient reason to alter the fundamental policy goals. The measure simply applied the same rules to corporations as those that apply to homeowners: when you transfer, you pay the transfer tax. Fair’s fair.

Now, this measure doesn’t specifically get to the Prop 13 issue, as that is state law, not municipal. But more cities should work towards defining these corporate games as the transfers that they really are and to ensure that corporations pay their fair share.