Oakland is making a major push to collect unpaid business taxes from landlords and other small property owners. But some of those being fined say they never knew they owed anything. The city’s new enforcement efforts are catching property owners off guard, especially those who say they complied with other city rules and had never received a bill. As Oakland faces financial pressure, its tax compliance strategy is raising concerns about communication and fairness.

A Surprise Letter from the City

Beth Berlin-Stephens received a letter from Oakland’s tax compliance division in April 2025 that left her confused. It claimed she was behind on fees for a rental unit she owned in North Oakland. Berlin-Stephens was caught off guard. She said she always reported her rental income on state and federal tax returns and had believed she was following all legal requirements.

Registered but Not Notified

Berlin-Stephens and her partner bought their home in North Oakland in 2022. It included a backyard cottage, which they began renting soon after moving in. They registered the unit with Oakland’s rental housing registry, a system the city began developing to track rental units. Each year, Berlin-Stephens re-registered the property and received confirmation messages, but never heard anything more. Then, suddenly, she was notified of unpaid taxes she did not know existed.

Rental Registry Did Not Trigger Tax Notices

Even though the cottage was registered, it appears the rental registry system and the tax system were not connected in a way that would automatically inform landlords of business tax requirements. Berlin-Stephens said she received no mail or notices about owing taxes until the delinquency letter arrived. The form she received requested details about the rental unit, but it did not explain why no previous bill had been sent.

Oakland’s Budget Needs Drive Enforcement

Oakland has been working to improve its financial standing by collecting back taxes and fees. Like many cities, Oakland relies on business taxes, including those from rental properties, to fund essential services. In recent months, city staff have stepped up efforts to enforce tax compliance, resulting in notices and penalties being issued to landlords like Berlin-Stephens. The city is seeking to recover lost revenue from years of undercollection.

Confusion Over Tax Obligations

The case highlights a broader issue: many small property owners may be unaware that renting out a unit qualifies as a business subject to city taxation. Berlin-Stephens assumed she had complied with all legal obligations by reporting rental income to the state and federal governments and registering the unit with Oakland. The lack of clear guidance and communication from the city created a situation where landlords could be penalized for taxes they did not know they owed.

Fines Without Warnings Raise Concerns

Some landlords are concerned that the city is issuing fines without first providing notice or sending an initial bill. The letter Berlin-Stephens received labeled her as delinquent and required her to submit information quickly. Property owners like her argue that the city should have first sent a bill or warning to give them a chance to pay before penalties were imposed.

Calls for Better Communication

Landlords affected by the enforcement push are calling for Oakland to improve how it communicates tax obligations. They suggest the city link the rental registry system to the business tax system to automatically inform landlords when they become responsible for paying taxes. They also want the city to provide clearer instructions and fair warning before issuing fines.

Small Landlords Feel Targeted

Cases like Berlin-Stephens’ raise the question of how many other small landlords might be caught in similar situations. Without prior notice or education about tax requirements, these property owners may be unintentionally violating city rules. As Oakland moves forward with its tax compliance efforts, it will need to balance the need for revenue with clear communication and fair treatment of its residents.