Beth Berlin-Stephens recently received a perplexing letter from the city of Oakland that left her stunned.
The correspondence notified her of outstanding fees related to a rental unit she owns, which she had never encountered before.
Having always declared her rental income on federal and state tax returns, she believed she was fulfilling her obligations as a property owner.
Berlin-Stephens and her partner bought their home in North Oakland in 2022, a two-bedroom residence situated off Telegraph Avenue, which included a cottage in the backyard.
Shortly after moving in, they began renting this cottage to a tenant and duly registered it with the city upon learning about Oakland’s rental registry from a relative.
For two years, Berlin-Stephens faithfully registered annually, never receiving any communication from the city except for an automated confirmation.
However, her situation changed when she received a notice from Oakland’s tax compliance division stating she was delinquent on payments owed for her rental property.
The notice instructed her to complete a form with details about the rental unit, and two weeks later, she received a bill totaling $2,257.
Approximately half of this amount consisted of late fees, interest, and penalties.
Berlin-Stephens expressed willingness to pay the past-due fees, promptly sending a check to the city but felt the imposition of steep fines was unjust considering she had not been informed of any outstanding charges.
“I wasn’t trying to hide or sneak or do anything wrong,” she stated in her defense.
Berlin-Stephens is not alone; she represents a larger group of landlords facing similar challenges as the city of Oakland intensifies its efforts to recover unpaid taxes and fees from businesses amid a significant fiscal crisis.
The recently passed two-year budget, which aims to close a $265 million deficit, projects that $1.7 million in revenue could be obtained from delinquent taxpayers.
According to reports from Oakland’s finance department, businesses have owed the city an astounding $34 million due to unpaid taxes since 2021.
City officials attribute the lack of notifications for these unpaid taxes to a ransomware attack that occurred in 2023.
The union representing tax collection workers has critiqued the department’s leadership for failing to enforce tax collection thoroughly, thus endangering the city’s financial health.
Councilmember Janani Ramachandran has echoed these concerns, emphasizing the need for all businesses to adhere to tax obligations if they are turning profits.
She insists that allowing non-compliant businesses to evade their dues is unfair to those who follow the proper protocols.
In her words, “If you own and operate a business in the city of Oakland of any kind, and you’re turning a profit, you should pay your taxes.”
Ramachandran’s belief is that the amount of delinquent tax money is likely higher than $34 million, and additionally noted that recent budget provisions include numerous support measures for small businesses, signaling an effort towards creating a financially viable environment.
Understanding the compliance maze can be particularly taxing for small landlords like Berlin-Stephens.
In Oakland, landlords are obligated to pay taxes related to rental operations, as well as small fees associated with the Oakland Rent Adjustment Program (RAP).
The RAP fee stands at $101 for each rental unit on an annual basis, which landlords can partially transfer to their tenants.
Berlin-Stephens’s specific bill for 2023 included reporting $8,000 in rental income, resulting in a tax charge of $112 plus the RAP fee of $101.
In addition to these amounts, her bill was assessed a $50
image source from：https://oaklandside.org/2025/06/16/oakland-business-taxes-delinquent-landlords/
