Describing and setting forth a proposal to the voters at an election to be held on November 3, 2020, to amend the Charter of the City and County of San Francisco to provide that future annual adjustments in baseline funding for the following Charter-mandated funds will not take into account certain changes in City revenue resulting from voter-approved business taxes on the November 3, 2020 ballot: the Municipal Transportation Fund, the Park, Recreation and Open Space Fund, the Children and Youth Fund, the Library Preservation Fund, the Housing Trust Fund, the Public Education Enrichment Fund, the Dignity Fund, and the Street Tree Maintenance Fund; to amend the Business and Tax Regulations Code to:  1) reduce the annual Business Registration Fee for businesses with $1,000,000 or less in San Francisco gross receipts; 2) increase the small business exemption ceiling for the Gross Receipts Tax to $2,000,000 and increase the annual Business Registration Fee on businesses benefiting from this increased exemption ceiling; 3) modify the Gross Receipts Tax rates; 4) repeal the Payroll Expense Tax; 5) increase the Gross Receipts Tax on certain taxpayers for 20 years if a final judicial decision has the effect of invalidating the Homelessness Gross Receipts Tax Ordinance; 6) impose a new general tax on the gross receipts from the lease of certain commercial space for 20 years if a final judicial decision has the effect of invalidating the Early Care and Education Commercial Rents Tax Ordinance; and 7) make other changes to the City’s business taxes; and to increase the City’s appropriations limit by the total revenues collected under Articles 12-A-1 and 36 of the Business and Tax Regulations Code for four years from November 3, 2020.

NOTE: Unchanged Charter and Code text and uncodified text are in plain font.

Additions are in single-underline italics Times New Roman font.

Deletions are in strikethrough italics Times New Roman font.

Asterisks (*   *   *   *) indicate the omission of unchanged Charter or Code text or parts of tables.

Section 1.  The Board of Supervisors hereby submits to the qualified voters of the City and County, at an election to be held on November 3, 2020, a proposal to amend the Charter of the City and County by revising Sections 8A.105, 16.107, 16.108, 16.109, 16.110, 16.123-2, 16.128-3, and 16.129, to read as follows:

SEC. 8A.105.  MUNICIPAL TRANSPORTATION FUND.

(a)  There is hereby established a fund to provide a predictable, stable, and adequate level of funding for the Agency, which shall be called the Municipal Transportation Fund.  The fund shall be maintained separate and apart from all other City and County funds.  Monies therein shall be appropriated, expended, or used by the Agency solely and exclusively for the operation including, without limitation, capital improvements, management, supervision, maintenance, extension, and day-to-day operation of the Agency, including any division subsequently created or incorporated into the Agency and performing transportation-related functions.  Monies in the Fund may not be used for any other purposes than those identified in this Section 8A.105. 

(b)  Beginning with the fiscal year 2000-2001 and in each fiscal year thereafter, there is hereby set aside to the Municipal Transportation Fund the following: 

1.  An amount (the “Base Amount”) which shall be no less than the amount of all appropriations from the General Fund, including all supplemental appropriations, for the fiscal year 1998-1999 or the fiscal year 1999-2000, whichever is higher (the “Base Year”), adjusted as provided in subsection (c), below, for (1) the Municipal Railway; and (2) all other City and County commissions, departments and agencies providing services to the Municipal Railway, including the Department of Human Resources and the Purchasing Department, for the provision of those services.  The Base Amount for the Department of Parking and Traffic and the Parking Authority shall be established in the same fashion but using fiscal years 2000-2001 and 2001-2002 for the services being incorporated into the Agency.

2.  Subject to the limitations and exclusions in Sections 4.113, the revenues of the Municipal Railway, and, upon their incorporation into the Agency, the revenues of the Department of Parking and Traffic, and the Parking Authority; and 

3.  All other funds received by the City and County from any source, including state and federal sources, for the support of the Agency. 

(c)  The Base Amount shall initially be determined by the Controller.  Adjustments to the Base Amount shall be made as follows:

1.  The Base Amount shall be adjusted for each year after fiscal year 2000-2001 by the Controller based on calculations consistent from year to year, by the percentage increase or decrease in aggregate City and County discretionary revenues.  In determining aggregate City and County discretionary revenues, the Controller shall only include revenues received by the City which are unrestricted and may be used at the option of the Mayor and the Board of Supervisors for any lawful City purpose.  Additionally, in determining aggregate City and County discretionary revenues, the Controller shall not include revenues received by the City under the increased rates in Business and Tax Regulations Code Sections 953.1(g), 953.2(h), 953.3(h), 953.4(e), 953.5(d), 953.6(f), 953.7(d), and 953.8(i) adopted by the voters at the general municipal election on November 3, 2020, and shall not include revenues received by the City under Article 36 of the Business and Tax Regulations Code adopted by the voters at the general municipal election on November 3, 2020.  Errors in the Controller’s estimate of discretionary revenues for a fiscal year shall be corrected by adjustment in the next year’s estimate. 

2.  An adjustment shall also be made for any increases in General Fund appropriations to the Agency in subsequent years to provide continuing services not provided in the Base Year, but excluding additional appropriations for one-time expenditures such as capital expenditures or litigation judgments and settlements. 

3.  Commencing with the fiscal year beginning on July 1, 2015, the Controller shall also adjust the Base Amount annually by the percentage increase in the San Francisco population based on data from the source(s) the Controller, in his or her sole discretion, finds most reliable for the most recent available calendar year.  The Controller’s population growth adjustment shall be based on the greater of the increase in daytime or night-time population.  For any year in which the Controller determines that neither the daytime nor night-time population has increased, the Controller shall make no adjustment under this subparagraph 3 to the Base Amount.  For purposes of the initial adjustment for the year commencing July 1, 2015, the Controller shall adjust the Base Amount based on the increase in City daytime or night-time population for the most recent ten-year period for which data are available instead of the most recent available calendar year.  The Agency shall use the amount of any increase in the Base Amount resulting from the adjustment required by this subparagraph 3 exclusively as follows: 75 per cent shall be used to make transit system improvements to the Municipal Railway to improve the system’s reliability, frequency of service, capacity, and state of good repair, and 25 per cent shall be used for transportation capital expenditures to improve street safety for all users.

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SEC. 16.107.  PARK, RECREATION AND OPEN SPACE FUND.

(a)  Establishment of Fund.  There is hereby established the Park, Recreation and Open Space Fund (“Fund”) to be administered by the Recreation and Park Department (“Department”) as directed by the Recreation and Park Commission (“Commission”).  Monies in the Fund shall be expended or used solely by the Department, subject to the budgetary and fiscal provisions of the Charter, to provide park and recreational services and facilities.  The Department embraces socio-economic and geographic equity as a guiding principle and commits to expending the funds across its open space and recreational programs to provide park and recreational access to all of San Francisco’s diverse neighborhoods and communities.

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(c)  Baseline Maintenance of Effort.  The annual set-aside shall be used exclusively to increase the aggregate City appropriations to and expenditures by the Recreation and Park Department for Department purposes.  To this end, beginning in fiscal year 2016-2017 and thereafter through fiscal year 2045-2046, the City shall not reduce the baseline general fund support amount appropriated to the Department below the amount appropriated in fiscal year 2015-2016, as calculated by the Controller, except that the baseline amount shall be adjusted as follows:

(1)  Each year in fiscal years 2016-2017 through 2025-2026, the City shall increase the baseline appropriation by $3 million over the prior year.

(2)  Each year in fiscal years 2026-2027 through 2045-2046, the City shall adjust the baseline by the percentage increase or decrease in aggregate City discretionary revenues, as determined by the Controller, based on calculations consistent from year to year.  In determining aggregate City discretionary revenues, the Controller shall only include revenues received by the City which are unrestricted and may be used at the option of the Mayor and the Board of Supervisors for any lawful City purpose.  Additionally, in determining aggregate City discretionary revenues, the Controller shall not include revenues received by the City under the increased rates in Business and Tax Regulations Code Sections 953.1(g), 953.2(h), 953.3(h), 953.4(e), 953.5(d), 953.6(f), 953.7(d), and 953.8(i) adopted by the voters at the general municipal election on November 3, 2020, and shall not include revenues received by the City under Article 36 of the Business and Tax Regulations Code adopted by the voters at the general municipal election on November 3, 2020.  The Controller is authorized to increase or reduce budgetary appropriations as required by this subsection (c) to align the baseline amount to the amount required by formula based on actual revenues received during the fiscal year.

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SEC. 16.108.  CHILDREN AND YOUTH FUND.

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(b)  Fund for Children and Youth Services.  Operative July 1, 2001, there is hereby established a fund to expand children’s services, which shall be called the Children and Youth Fund (“Fund”).  Monies in the Fund shall be expended or used only to provide services for children and youth as provided in this sSection 16.108.

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(h)  Baseline.  The Fund shall be used exclusively to increase the aggregate City appropriations and expenditures for those services for children and Disconnected Transitional-Aged Youth that are eligible to be paid from the Fund (exclusive of expenditures mandated by state or federal law).  To this end, the City shall not reduce the amount of such City appropriations for eligible services (not including appropriations from the Fund and exclusive of expenditures mandated by state or federal law) under this section below the amount so appropriated for the fiscal year 2000-2001 (“the base year”) as set forth in the Controller’s baseline budget, as adjusted (“the base amount”).

The Controller shall calculate City appropriations made in fiscal year 2013-2014 for services for Disconnected Transitional-Aged Youth aged 18 through 24 years.  Beginning with fiscal year 2014-2015, that amount shall be added to the base amount and adjusted as provided below.  The City shall not reduce the amount of such City appropriations for services for Disconnected Transitional-Aged Youth (not including appropriations from the Fund and exclusive of expenditures mandated by state or federal law) under this section below the amount so appropriated for fiscal year 2013-2014, as adjusted.

The base amount shall be adjusted for each year after the base year by the Controller based on calculations consistent from year to year by the percentage increase or decrease in aggregate City and County discretionary revenues.  In determining aggregate City and County discretionary revenues, the Controller shall only include revenues received by the City and County that are unrestricted and may be used at the option of the Mayor and the Board of Supervisors for any lawful City purpose.  Additionally, in determining aggregate City and County discretionary revenues, the Controller shall not include revenues received by the City under the increased rates in Business and Tax Regulations Code Sections 953.1(g), 953.2(h), 953.3(h), 953.4(e), 953.5(d), 953.6(f), 953.7(d), and 953.8(i) adopted by the voters at the general municipal election on November 3, 2020, and shall not include revenues received by the City under Article 36 of the Business and Tax Regulations Code adopted by the voters at the general municipal election on November 3, 2020.  The method used by the Controller to determine discretionary revenues shall be consistent with method used by the Controller to determine the Library and Children’s Baseline Calculations dated June 20, 2000, which the Controller shall place on file with the Clerk of the Board in File No. 000952. Errors in the Controller’s estimate of discretionary revenues for a fiscal year shall be corrected by an adjustment in the next year’s estimate.  Within 90 days following the end of each fiscal year through Fiscal Year 2040-2041, the Controller shall calculate and publish the actual amount of City appropriations for services for children and Disconnected Transitional-Aged Youth that would have been eligible to be paid from the Fund but are paid from other sources, separately identifying expenditures mandated by state or federal law.

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SEC. 16.109.  LIBRARY PRESERVATION FUND.

(a)  Establishment of Fund.  There is hereby established the Library Preservation Fund (“the Fund”) to be administered by the Library Department as directed by the Library Commission.  Monies therein shall be expended or used solely by the Library Department, subject to the budgetary and fiscal provisions of the Charter, to provide library services and to construct, maintain and operate library facilities. 

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(c)  Baseline — Maintenance of Effort.  The Annual Set-Aside shall be used exclusively to increase the aggregate City appropriations and expenditures for services, materials, facilities and equipment that will be operated by the Library for Library purposes.  To this end, in any of the fifteen years during which funds are required to be set aside under this Section 16.109, the City shall not reduce the Baseline for the Library Department below the fiscal year 2006-2007 Required Baseline Amount (as calculated by the Controller), except that the Baseline shall be adjusted as provided below. 

The Baseline shall be adjusted for each year after fiscal year 2006-2007 by the Controller based on calculations consistent from year to year, by the percentage increase or decrease in aggregate City and County discretionary revenues.  In determining aggregate City and County discretionary revenues, the Controller shall only include revenues received by the City which are unrestricted and may be used at the option of the Mayor and the Board of Supervisors for any lawful City purpose.  Additionally, in determining aggregate City and County discretionary revenues, the Controller shall not include revenues received by the City under the increased rates in Business and Tax Regulations Code Sections 953.1(g), 953.2(h), 953.3(h), 953.4(e), 953.5(d), 953.6(f), 953.7(d), and 953.8(i) adopted by the voters at the general municipal election on November 3, 2020, and shall not include revenues received by the City under Article 36 of the Business and Tax Regulations Code adopted by the voters at the general municipal election on November 3, 2020.  Errors in the Controller’s estimate of discretionary revenues for a fiscal year shall be corrected by adjustment in the next year’s estimate.  For purposes of this subsection (c), (i) aggregate City appropriations shall not include funds granted to the City by private agencies or appropriated by other public agencies and received by the City, and (ii) Library Department appropriations shall not include funds appropriated to the Library Department to pay for services of other City departments or agencies, except for departments or agencies for whose specific services the Library Department was appropriated funds in fiscal year 2006-2007.  Within 180 days following the end of each fiscal year through fiscal year 2023-2024, the Controller shall calculate and publish the actual amount of City appropriations for the Library Department. 

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SEC. 16.110.  HOUSING TRUST FUND.

(a)  Creation of Fund.  There is hereby established a Housing Trust Fund to support creating, acquiring and rehabilitating affordable housing and promoting affordable home ownership programs in the City, as provided in this Section 16.110.

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(c)  Funding.

(1)  In the Fiscal Year 2013-2014 budget, the City shall appropriate to the Housing Trust Fund $20 million.

(2)  For the next 11 fiscal years, in each of the annual budgets for Fiscal Year 2014-2015 through Fiscal Year 2024-2025, the City shall appropriate to the Housing Trust Fund an amount increasing by $2.8 million per year, until the Fiscal Year 2024-2025 budget.

  (3)  In the annual budgets for Fiscal Year 2025-2026 through Fiscal Year 2042-43, the City shall appropriate to the Housing Trust Fund an amount equal to the prior year’s appropriation, adjusted by the percentage increase or decrease in General Fund Discretionary Revenues budgeted for the year compared to the prior year’s original budgeted amount of General Fund Discretionary Revenues.

(4)  Should the City adopt a fixed two-year budget under Charter Section 9.101, the adjustment for the Housing Trust Fund appropriation for the two years of the two-year budget shall be based on the amount of General Fund Discretionary Revenues estimated for the two-year period included in the budget.

(5)  During Fiscal Years 2025-2026 through 2042-2043, if the Controller submits a revised estimate of General Fund Discretionary Revenues for a given Fiscal Year or two-year budget period that is lower than the amount originally budgeted for that period, then the Board may, by ordinance, reduce the appropriation to the Housing Trust Fund for that budget period in an amount that does not exceed the amount proportionate to the percentage shortfall in the discretionary revenue projection.

(6)  The Controller’s method of calculating the amount of and changes in General Fund Discretionary Revenues shall be consistent from fiscal year to fiscal year and with the Controller’s method for calculating those figures under Charter Sections 8A.105, 16.108, and 16.109.  The Controller shall treat General Fund appropriations to the Housing Trust Fund as reductions in General Fund Discretionary Revenues when calculating other funding allocations that are tied to General Fund Discretionary Revenues, including funding allocations under Charter Sections 8A.105, 16.108, and 16.109.  Additionally, in determining General Fund Discretionary Revenues, the Controller shall not include revenues received by the City under the increased rates in Business and Tax Regulations Code Sections 953.1(g), 953.2(h), 953.3(h), 953.4(e), 953.5(d), 953.6(f), 953.7(d), and 953.8(i) adopted by the voters at the general municipal election on November 3, 2020, and shall not include revenues received by the City under Article 36 of the Business and Tax Regulations Code adopted by the voters at the general municipal election on November 3, 2020.  The Controller shall correct errors in the estimate of discretionary revenues for a fiscal year through an adjustment to the next fiscal year’s estimate. 

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SEC. 16.123-2.  PUBLIC EDUCATION ENRICHMENT FUND.

(a)  Creating the Fund.  There shall be a Public Education Enrichment Fund.  The City shall each year appropriate monies to the Public Education Enrichment Fund according to subsections (b), (c), and (d), below.

(b)  Baseline Appropriations.  The Fund shall be used exclusively to increase the aggregate City appropriations to and expenditures for the San Francisco Unified School District.  To this end, the City shall not reduce the amount of such City appropriations (not including appropriations from the Fund and exclusive of expenditures mandated by state or federal law) in any year during which funds are required to be set aside under this Section 16.123-2 below the amount so appropriated for Fiscal Year 2002-2003 (“the base year”).  These baseline appropriations shall be separate from the City’s annual contributions to the Public Education Enrichment Fund under subsection (c), and shall be appropriated by the City to the School District each year through and including Fiscal Year 2040-2041.

The amount of the City’s baseline appropriations to the School District shall be adjusted for each year after the base year by the Controller based on calculations consistent from year to year by the percentage increase or decrease in City and County discretionary General Fund revenues.  In determining City and County discretionary General Fund revenues, the Controller shall only include revenues received by the City and County that are unrestricted and may be used at the option of the Mayor and the Board of Supervisors for any lawful City purpose.  Additionally, in determining aggregate City and County discretionary General Fund revenues, the Controller shall not include revenues received by the City under the increased rates in Business and Tax Regulations Code Sections 953.1(g), 953.2(h), 953.3(h), 953.4(e), 953.5(d), 953.6(f), 953.7(d), and 953.8(i) adopted by the voters at the general municipal election on November 3, 2020, and shall not include revenues received by the City under Article 36 of the Business and Tax Regulations Code adopted by the voters at the general municipal election on November 3, 2020.  Errors in the Controller’s estimate of discretionary revenues for a fiscal year shall be corrected by an adjustment in the next year’s estimate. Using audited financial results for the prior fiscal year, the Controller shall calculate and publish the actual amount of City appropriations that would have been required under this baseline for the School District.

(c)  Annual Contributions to the Fund FY 2005-2006 through FY 2009-2010.  In addition to the annual baseline appropriation provided above, the City shall, for years two through six of this measure, contribute the following amounts to the Public Education Enrichment Fund:

Fiscal Year 2005-06 $10 million

Fiscal Year 2006-07 $20 million

Fiscal Year 2007-08 $30 million

Fiscal Year 2008-09 $45 million

Fiscal Year 2009-10 $60 million

(d)  Annual Contributions to the Fund – FY 2010-11 and Thereafter.  For Fiscal Years 2010-11 and thereafter, the City’s annual contribution to the Public Education Enrichment Fund shall equal its total contribution for the prior year, beginning with Fiscal Year 2009-2010, adjusted for the estimated increase or decrease in discretionary General Fund revenues for the year.  In determining the increase or decrease in discretionary General Fund revenues, the Controller shall not include revenues received by the City under the increased rates in Business and Tax Regulations Code Sections 953.1(g), 953.2(h), 953.3(h), 953.4(e), 953.5(d), 953.6(f), 953.7(d), and 953.8(i) adopted by the voters at the general municipal election on November 3, 2020, and shall not include revenues received by the City under Article 36 of the Business and Tax Regulations Code adopted by the voters at the general municipal election on November 3, 2020.  

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SEC. 16.128-3.  ANNUAL CONTRIBUTIONS TO THE FUND.

(a)  Annual Baseline Contributions to the Fund.  Each year during the term of Charter Section 16.128-1 et seq., the City shall make an annual baseline contribution to the Fund in the amount of $38 million, representing the amount the City spent in fiscal year 2016-2017 to provide eligible services as identified in Section 16.128-4 to Seniors and Adults with Disabilities.

(b)  Additional Contributions for FY 2017-2018 through FY 2026-2027.  For fiscal year 2017-2018, the City shall increase its contribution to the Fund over the baseline amount in subsection (a) by $6 million.  For each fiscal year from 2018-2019 through 2026-2027, the City shall increase its additional contribution to the Fund under this subsection (b) by $3 million over the prior year.

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(d)  Additional Contributions for FY 2027-2028 through FY 2036-2037.  For fiscal years 2027-28 through 2036-2037, the City’s annual contribution to the Fund shall equal its total contribution, including the baseline amount under subsection (a), for the prior year, beginning with Fiscal Year 2026-2027, adjusted by the percentage increase or decrease in aggregate City discretionary revenues, as determined by the Controller, based on calculations consistent from year to year.  In determining aggregate City discretionary revenues, the Controller shall not include revenues received by the City under the increased rates in Business and Tax Regulations Code Sections 953.1(g), 953.2(h), 953.3(h), 953.4(e), 953.5(d), 953.6(f), 953.7(d), and 953.8(i) adopted by the voters at the general municipal election on November 3, 2020, and shall not include revenues received by the City under Article 36 of the Business and Tax Regulations Code adopted by the voters at the general municipal election on November 3, 2020.  For purposes of this subsection (d), the “additional contribution” for these years shall mean the amount in excess of the baseline amount.

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SEC. 16.129.  STREET TREE MAINTENANCE.

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(f)  Creating the Street Tree Maintenance Fund; Annual City Contributions.  There shall be a Street Tree Maintenance Fund (the “Fund”).  Each fiscal year, beginning in fiscal year 2017-2018, the City shall contribute $19 million to the Fund.  The Fund shall also include any other monies appropriated or allocated to the Fund.  Beginning in fiscal year 2018-2019, the Controller shall adjust the amount of the City’s annual $19 million contribution to the Fund under this subsection (f) by the percentage increase or decrease in aggregate City discretionary revenues, as determined by the Controller, based on calculations consistent from year to year.  In determining aggregate City discretionary revenues, the Controller shall only include revenues received by the City that are unrestricted and may be used at the option of the Mayor and the Board of Supervisors for any lawful City purpose.  Additionally, in determining aggregate City discretionary revenues, the Controller shall not include revenues received by the City under the increased rates in Business and Tax Regulations Code Sections 953.1(g), 953.2(h), 953.3(h), 953.4(e), 953.5(d), 953.6(f), 953.7(d), and 953.8(i) adopted by the voters at the general municipal election on November 3, 2020, and shall not include revenues received by the City under Article 36 of the Business and Tax Regulations Code adopted by the voters at the general municipal election on November 3, 2020.The method used by the Controller to determine discretionary revenues shall be the same as the method used by the Controller to determine the Library and Children’s Fund Baseline calculations, as provided in Charter Section 16.108(h). The change in aggregate discretionary revenues will be adjusted following the end of the fiscal year when final revenues are known.  The Controller is authorized to increase or reduce budgetary appropriations as required under this subsection (f) to reflect changes in aggregate discretionary revenues following the end of the fiscal year when final revenues are known.  The Controller shall set aside and maintain the above amounts, together with any interest earned thereon, in the Fund, which shall be subject to appropriation.  Any amount unspent or uncommitted at the end of the fiscal year shall be deemed to have been devoted exclusively to a specified purpose within the meaning of Charter Section 9.113(a), shall be carried forward to the next fiscal year, and, subject to the budgetary and fiscal limitations of this Charter, shall be appropriated then or thereafter for the purposes set forth in this Section 16.129.

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Section 2.  The Board of Supervisors hereby submits to the qualified voters of the City and County, at an election to be held on November 3, 2020, a proposal to amend the Business and Tax Regulations Code of the City and County by revising Section 6.9-3 of Article 6, to read as follows:

SEC. 6.9-3.  DETERMINATIONS, RETURNS AND PAYMENTS; REMITTANCES.

(a)  Remittances.  Notwithstanding the due dates otherwise provided in Section 6.9-1, taxpayers shall make remittances of taxes and third-party taxes to the Tax Collector as follows:

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(3)  Payroll Expense Tax, Gross Receipts Tax, Early Care and Education Commercial Rents Tax, Homelessness Gross Receipts Tax, and Cannabis Business Tax: Estimated Tax Payments.  Except as provided in Section 6.9-3(a)(3)(G) with respect to estimated tax payments of the gross receipts tax, every person or combined group liable for payment of the payroll expense tax (Article 12-A), the gross receipts tax (Article 12-A-1) (including the tax on administrative office business activities imposed under Section 953.8 of Article 12-A-1), the Early Care and Education Commercial Rents Tax (Article 21), the Homelessness Gross Receipts Tax (Article 28) (including the homelessness administrative office tax imposed under Section 2804(d) of Article 28), or the Cannabis Business Tax (Article 30) shall make three estimated tax payments, in addition to the annual payments in Section 6.9-3(a)(4), as follows:

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(C)  Gross Receipts Tax Estimated Tax Payments.  For purposes of this Section 6.9-3, a person or combined group’s estimated tax payments of gross receipts tax, including the tax on administrative office business activities imposed under Section 953.8 of Article 12-A-1, for any tax years commencing on or after January 1, 2021 shall each equal the lesser of:

(i)  25% of the gross receipts tax liability (including any liability for the tax on administrative office business activities imposed under Section 953.8 of Article 12-A-1) shown on the person or combined group’s return for the tax year (or, if no return is filed, 25% of the person or combined group’s actual gross receipts tax liability for the tax year); or

(ii)  25% of the gross receipts tax liability (including any liability for the tax on administrative office business activities imposed under Section 953.8 of Article 12-A-1) as determined by applying the applicable gross receipts tax rates and small business exemption in Section 954.1 of Article 12-A-1 for the current tax year to the taxable gross receipts shown on the person or combined group’s return for the preceding tax year (or, if subject to the tax on administrative office business activities imposed under Section 953.8 of Article 12-A-1 for the preceding tax year, by applying the applicable administrative office tax rate for the current tax year to the total payroll expense attributable to the City shown on the person or combined group’s return for the preceding tax year).  If the person or combined group did not file a return for the preceding tax year, the person or combined group shall owe be deemed to have filed a return showing no liability for purposes of this Section 6.9-3(a)(3)(C)(ii), and no estimated tax payments of gross receipts taxes (or estimated tax payments of the tax on administrative office business activities imposed under Section 953.8 of Article 12-A-1)shall be due for the current tax year.  For purposes of this Section 6.9-3(a)(3)(C)(ii), “taxable gross receipts” means a person or combined group’s gross receipts, not excluded under Section 954 of Article 12-A-1, attributable to the City.

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Section 3.  The Board of Supervisors hereby submits to the qualified voters of the City and County, at an election to be held on November 3, 2020, a proposal to amend the Business and Tax Regulations Code of the City and County by revising Sections 855 and 856 of Article 12, to read as follows:

SEC. 855.  REGISTRATION CERTIFICATE – FEE.

(a)  Fee for registration years ending on or after June 30, 2004, but ending on or before June 30, 2014.  Except as otherwise provided in this Section and Section 856 of this Article, the annual fee for obtaining a registration certificate for registration years ending on or after June 30, 2004, but ending on or before June 30, 2014, payable in advance, shall be as follows:

(b)  In the event that an applicant for a registration certificate, for registration years ending on or after June 30, 2004, but ending on or before June 30, 2014, has not filed a tax return for the immediately preceding tax year as required by Section 6.9-2 of Article 6, the Tax Collector shall determine the amount of the registration fee required based on the applicant’s estimated tax liability under Article 12-A (Payroll Expense Tax Ordinance) for the period covered by the registration certificate.

(c)  Fee for Registration Year Commencing July 1, 2014 and Ending June 30, 2015.  Except as otherwise provided in this Section and Section 856 of this Article, the annual fee for obtaining a registration certificate, for the registration year commencing July 1, 2014 and ending June 30, 2015, payable in advance, shall be as follows:

(d)  In the event that an applicant for a registration certificate, for registration year commencing July 1, 2014 and ending June 30, 2015, has not filed a tax return for the immediately preceding tax year as required by Section 6.9-2 of Article 6, the Tax Collector shall determine the amount of the registration fee required based on the applicant’s payroll expense under Article 12-A (Payroll Expense Tax Ordinance) for the period covered by the registration certificate.

(ae)  Fee for Registration Years Ending After June 30, 2015, but On or Before June 30, 2021.

(1)  General Rule.  Except as otherwise provided in this Section 855 and Section 856 of this Article 12, the annual fee for obtaining a registration certificate, for the registration years ending after June 30, 2015, but on or before June 30, 2021, payable in advance, shall be as follows:

(2)  Fee for Retail Trade, Wholesale Trade, and Certain Services.  Except as otherwise provided in this Section 855 and Section 856 of this Article 12, for registration years ending after June 30, 2015, but on or before June 30, 2021, the annual fee for obtaining a registration certificate, payable in advance, for a business that was required to report all of its gross receipts pursuant to Article 12-A-1, Section 953.1 for the preceding tax year, shall be as follows:

(b)  Fee for Registration Years Beginning On or After July 1, 2021.

(1)  General Rule.  Except as otherwise provided in this Section 855 and Section 856 of this Article 12, the annual fee for obtaining a registration certificate, for the registration years beginning on or after July 1, 2021, payable in advance, shall be as follows: 

The text above contains the first 20 pages of Measure F but does not include the remaining pages of the measure. The pages that have been excluded may include important information that could be useful to voters, and the Department of Elections encourages voters to review those pages as well. The full text of this measure is available online at sfelections.org and in every public library. If you desire a copy of the full text of the measure to be mailed to you, please contact the Department of Elections at (415) 554-4375 and sfvote [at] sfgov.org and a copy will be mailed at no cost to you.