Berkeley voters are being asked to approve a new bank tax on homes and businesses. The full text of the measure is here. The tax is intended to "capitalize and support” a new bank.

A New Tax on Every Berkeley Home and Business

The bank would be subsidized by a new annual parcel tax on every square foot of residential and commercial property in Berkeley. Commercial tax rates are 33% higher than residential. A study commissioned by the City of Berkeley suggests $40 million in taxpayer funding is needed to launch the new bank.

No Guaranteed Berkeley Benefit

Berkeley taxpayers are being asked to provide 100% of the bank’s operating capital, but there is no guaranteed minimum return or allocation for Berkeley. The managers intend to fund projects anywhere in the East Bay including Oakland, Richmond and Emeryville. At a time when Berkeley is facing a $30 M deficit, an important policy question is whether residents and businesses should be asked to finance projects on behalf of other cities that are not contributing.