商業稅的變更
市府是否應該永久地變更對商業徵收的稅項,其中包括:將年度總收入稅率改為0.1%至3.716%,將無家可歸者總收入稅率改為0.0162%至1.64%,將商業登記費改為55美元至60,000美元,將多繳的行政人員總收入稅率改為0.02%至0.129%,將行政辦公室稅率改為工資支出的2.97%至3.694%;提高小商業總收入免稅額;以及改變市府計算這些稅項的方式;一旦全面實施,預計年收入為5,000萬美元?
本提案需要有50%+1的贊成票才能獲得通過。
摘要由選票簡釋委員會撰寫
現況:
市府每年徵收各類商業稅,其中包括:
- 總收入稅,是一家企業在三藩市的總收入的某個百分比。依照商業類型,市府根據企業在三藩市的銷售額、在當地工作的僱員薪資支出,或這兩者,來計算企業在三藩市的總收入。稅率為0.053%至1.008%,預定來年將會提高。稅率取決於商業類型,企業產生的總收入越多,相應的稅率便越高。就2024年而言,總收入不超過225萬美元的大多數小商業可豁免此稅。
- 無家可歸者總收入稅,是對在三藩市總收入超過5,000萬美元的商業活動所徵收的一項附加稅。稅率為0.175%至0.69%。
- 多繳的行政人員總收入稅,是對支付公司內最高薪管理階層僱員,比支付他們的三藩市僱員中位薪酬高出許多的公司徵收的一項附加稅。稅率為0.1%至0.6%。
- 商業登記費,是一項附加稅。對大多數公司來說,這項費用目前為47美元至45,150美元,視乎商業類型和總收入金額。
- 行政辦公室稅,是一項對某些大公司支付的工資支出徵收的稅,而不是其他這些商業稅。2024年的合併稅率為3.04%至.44%,預定2025年稅率為3.11%至5.51%。目前這些公司的商業登記費為19,682美元至45,928美元。
州法限制市府每年可支出的總收入。選民可批准將這項支出限額提高,最多為期四年。
建議:
建議提案會將把市府的商業稅改為:
- 對於總收入稅:
- 總收入至多500萬美元(依通貨膨脹提高)的大多數小商業豁免此稅。
- 業務類型從14類減為七類;
- 三藩市總收入計算方式較多根據銷售,較少根據工資的支出,依業務類型而定。
- 將稅率改為0.1%至3.716%;以及
- 對在三藩市總收入超過2,500萬美元的商業活動課徵無家可歸者總收入稅,稅率為0.162%至1.64%。
- 修改市府對多繳的行政人員總收入稅計算方式,決定由誰支付這項稅,並且將稅率定為0.02%至0.129%。
- 將商業登記費調整為55美元至60,000美元(依通貨膨脹提高)。
- 將某些大公司的行政辦公室稅率調整為2.97%至3.694%,並將這些公司的商業登記費調整為500美元至35,000美元(依通貨膨脹提高)。
- 對市府的商業稅做出行政變更。
無家可歸者總收入稅將持續資助預防無家可歸以及向正在經歷無家可歸的人所提供的各類服務。
市府會使用以上提到的其他稅項用於政府一般用途。
所有這些稅項將無限期實施,直到被廢除為止。
這項提案會調高市府支出上限,為期四年。
如果提案M通過並且獲得的票數多於提案L,則提案L就不具法律效力。
投「贊成」票的意思是:如果您投「贊成」票,即表示您同意變更市府對企業徵收的以下稅項:總收入稅、無家可歸者總收入稅、多繳的行政人員總收入稅、行政辦公室稅和商業登記費。
投「反對」票的意思是:如果您投「反對」票,即表示您不同意變更市府的商業稅。
市主計官對提案「M」的意見書
市主計官Greg Wagner就提案M對本市財政的影響發表以下聲明:
我認為,如果建議的法令獲得選民批准,對商業稅收入將產生以下影響。在前三個財政年度,即2024至2025財政年度和2026至2027財政年度,本提案預計每年會減少大約4,000萬美元的收入。儘管無法確定,但如果本提案有助於使市府降低未來有爭議稅項的儲備金,此預計的損失金額可能會較小。從2027年開始,在預定的稅率提高之下,在2028至2029財政年
度及以後,每年將會產生大約5,000萬美元的收入。到了2029至2030財政年度,因稅率提高所產生的總正收入將會抵銷前三年減少的收入,使該段期間的商業稅收入總額與現行法律相當。在2029至2030財政年度之後,此項法令預計會持續每年產生大約5,000萬美元額外收入。上述預計收入影響假設每年商業執照費降低1,000萬美元,這將於今後的立法中提出。
建議的法令將在幾個關鍵範疇修訂市府現行《商業與稅則法》:
- 將小企業的總收入稅免稅額從225萬美元提高為500萬美元,
- 將總收入稅和無家可歸者總收入稅的稅附表數從14類商業活動整併為7類商業活動,
- 在2025年調整總收入、無家可歸者總收入、行政辦公室和多繳的行政人員總收入等稅項的稅率,在2027與2028年提高總收入、行政辦公室和多繳的行政人員總收入等稅項的稅率;目前預定在2024年之後提高的稅率依本提議將不會發生,
- 將市府對大多數商業活動在三藩市總收入的計算方式從工資支出轉移到銷售;唯一的例外是那些在三藩市的總收入已經完全根據銷售來計算的商業活動,
- 要求財政官和稅務官辦公室建立一個預先決定程序,為納稅人提供書面指南,以及做出其他實施變更,
- 為繳納體育場營運者入場稅的商業、雜貨零售商和某些新建建築物的新承租人設立新的稅務優惠,
- 對商業登記費做出變更。
此外,本法令要求市主計官在2026年9月和2027年9月,報告此項創制提案所做的各項變更的影響。
商業稅可能根據經濟情況而有重大的變化,目前的估計可能無法準確預測未來收入。
提案「M」如何被列入選票
2024年7月8日,選務處確認提案M的創制提案請願書,請願書包含足夠數目的有效簽名,使提案有資格列入選票。
將一項創制法令列入選票需有10,029個簽名。這個數字相當於發布「分發請願書意向通知」時登記選民人數的2%。創制提案請願書倡議者於2024年7月8日期限之前呈交的簽名,經過隨機審核表明有效簽名的總數超過所需數目。
以上陳述是本提案的中立分析。贊成和反對本提案的論據在本文後刊登。所登載論據為作者意見,其準確性未經任何官方機構校核。英文原文的拼寫及文法錯誤均未經改正。中文譯文與英文原文儘可能保持一致。
Proponent’s Argument in Favor of Proposition M
幫助三藩市的小企業蓬勃發展,振興三藩市的經濟——投票贊成提案M!
三藩市目前的稅收結構無法讓我們的本地商業蓬勃發展。我們已經看見太多小企業,尤其是餐廳與零售業關門結業。
提案M提供重要的稅收減免,透過完全免除稅金,幫助超過2,700家小企業。它還會修正稅制來防止我們最大的僱主離開本市,這些稅制過去懲罰了在辦公室有僱員的僱主,並造成市中心辦公室創記錄的空置率。
提案M還會大幅降低餐廳、酒店、藝術場地和鄰里商店的商業執照費。我們本地有超過90%的餐廳稅金負擔將減輕,其中88%完全不必繳納商業稅。較低的稅金將能讓我們的鄰里商業蓬勃發展。
提案M將簡化我們的現行稅制,使稅制對企業主和市府來說變得更可預期。這將有助於維護關鍵服務,同時致力打造一個更有活力、更乾淨與更安全的市中心。
目前三藩市一些商業稅率位居全國之冠,懲罰那些繼續在此地營運的小企業與大公司。
提案M將會降低稅金,這樣做將能為未來的投資與成長創造一個更好的環境。這是朝向幫助我們的經濟以及確保三藩市持續作為一個創新與機會之地積極的一步。
這項共識提案獲得來自本地小企業、倡導者、進步派、温和派以及來自不同政治層面的市府領導者廣泛支持。加入我們,為我們的小企業以及我們城市的未來,投票贊成提案M。我們同心協力就可以振興三藩市。請前往revitalizesf.com了解詳請。
Laurie Thomas,金門餐館協會
Masood Samereie,三藩市區商業組織議會
Rodney Fong,三藩市總商會
Alex Bastian,三藩市酒店協會
Larry Mazzola Jr.,三藩市樓宇及建築業委員會
Mary Jung,三藩市民主黨前主席
Rebuttal to Proponent’s Argument in Favor of Proposition M
提案M絕非出於好意或對小企業友善的提案。這項提案由特殊利益團體和政客聯手打造,它以不公平而且無效率的方式轉移稅金負擔,對三藩市工薪市民和更廣大的商界帶來害處。
提案的贊成者聲稱提案M降低並簡化稅制。事實上,它絕非稅收中立。提案M是一個在市政廳內部人士、商業說客和工會之間私相授受所產生的大雜燴,這些人在減輕自己負擔的同時,為飢渴的市政廳榨取更高更苛重的稅金。
提案M創造了行業的贏家與輸家——有些行業正面臨驚人的增稅,特別是那些稅級僅低於最高稅級的行業。值得注意的是,生物科技公司的稅金負擔增加了68%。提案M意味著更高的本地通貨膨脹,削減就業機會以及僱主離開三藩市。
這根本不是廣泛的稅務改革。提案M是一個黏稠的特殊利益蜜罐,它會威脅成長與就業。
不要支持這項有缺陷的提案,我們應將注意力轉向2025年由公民主導的全面稅制與支出改革,這才會真正支持企業成長和一個可持續發展的經濟未來。投票反對提案M。
Larry Marso, Esq.
Opponent's Argument Against Proposition M
提案M引進了新稅率,這些新稅率會大大地加重三藩市許多企業的負擔。儘管對有些小企業來說或許只有微小的改變,但其他企業——尤其是中等規模和大規模的僱主——面臨著兩倍或甚至四倍的稅率。
這不是「微調」,而是大幅增稅,可能會對主要企業的財務未來帶來巨大的改變。提案的贊成者聲稱此提案「稅收中立」。市主計官持反對看法:它是一年5,000萬美元的增稅。它將這個沉重的負擔轉移到仍未從三藩市的新冠疫情打擊中恢復過來的企業身上。這些大幅增稅將迫使公司減少投資、削減工作,以及重新全面考慮在三藩市的營運。
改革我們的商業稅制有更好的方式。作為撰寫過選票提案的人,我知道2025年有一項由公民主導的創制提案能繞過飢渴的市政廳政客,創造出一個能鼓勵而非懲罰商業成長的公平、基礎廣泛的稅收結構。讓我們齊心協力,在2025年通過稅制與支出改革,精簡政府,簡化稅法,使三藩市成為一個對各種規模的商業都更有吸引力的地方。
投票反對提案M,並且和我一起支持2025年由公民推動的真正稅收改革,讓整個三藩市受惠。
Larry Marso
Marso先生是技術高管、併購顧問和律師。他是一位堅定的財政責任倡導者,撰寫了規範三藩市無家者導航/收容中心的選票提案,打擊政黨和非營利組織中的腐敗和欺詐行為,並作為當地共和黨委員會的成員和前執行官,提出了有原則的反對意見。
停止對三藩市選民的大詐欺!瀏覽:https://bigfraud.com
Larry S. Marso
Rebuttal to Opponent’s Argument Against Proposition M
反駁反對提案M的論據
三藩市的小企業需要提案M。請投票贊成!
我們的小企業是三藩市的脈搏,代表著讓我們城市充滿活力、多元化與獨特性的一切。然而我們的鄰里商業正處於危機之中,我們需要提案M。自從疫情以來,許多小企業已經結束營業,其他則掙扎求存,承受著市府沉重的稅收結構的重擔。
如果沒有提案M,小企業的稅金將飆漲。稅金預定會提高,我們作為三藩市各地小企業的代表,可以肯定地說,在我們小企業界別中將會有很多同業無法生存。
提案M提供了一條活命之路。它透過向超過2,700家小企業提供即時稅收寬減,幫助我們的商業得以生存和發展。它豁免這些商業繳納市府稅項,並且取消1,000萬美元的許可費和執照費。它還降低或免除90%的餐廳的稅金。
提案M簡化了三藩市的商業稅結構,降低工資稅以鼓勵公司規模較大的僱主留在本市,並且更平均地分佈稅金負擔,達至財政穩定以支持重要市政服務。這不僅僅是一項臨時性的解決方案;它是振興我們經濟並維持我們鄰里獨特性至關重要的一步。
投票贊成提案M,幫助小企業,讓三藩市更強大。
Haight Ashbury商人協會
Polk區商人協會
北灘商業協會
米慎溪商人協會
Paid Arguments in Favor of Proposition M
1
贊成提案M的付費論據
振興我們的城市,投票贊成提案M!
長期以來,三藩市一直被譽為創新和商業的中心,但它仍在努力解決新冠疫情對經濟造成的影響。小企業正在苦苦掙扎,我們的市中心也遭受重創。提案M不僅是一項政策的改變,也是數以千計瀕臨倒閉的本地企業的生命線。通過提案M,它將會為醫療保健、藝術、娛樂、製造和清潔技術等行業帶來催化作用,確保三藩市仍然是一個充滿創新和活力的生活和工作之地。如果提案M不獲通過,延後的增稅將在2025年恢復。我們承擔不起加重本地企業的擔子。投票贊成提案M,幫助三藩市經濟蓬勃發展。Revitalizesf.com。
市長London Breed
市議會主席Aaron Peskin
市議員Rafael Mandelman
市議員Catherine Stefani
市議員Ahsha Safai
市議員Myrna Melgar
市議員Connie Chan
估值官-記錄官Joaquín Torres
這項論據的刊登費用的資金真正來源是:振興三藩市。
委員會提供資金的真正來源的三大貢獻者是:1. Google,2. Airbnb,3. 三藩市酒店協會。
2
贊成提案M的付費論據
支持提案M:一項對小企業至關重要的提案
作為三藩市地方商會的代表,我們支持提案M。這項重要提案對於我們所代表的數百家小企業的生存和繁榮至關重要。自從新冠疫情發生以來,我們的成員(包括零售業、酒店業等)面臨了前所未有的挑戰。透過減輕上述行業的稅務負擔,我們就是直接支持他們在疫情後能夠恢復生機及蓬勃的能力。除了立即減稅外,本提案還會簡化三藩市的商業稅收結構,使企業更容易辨別方向,並確保長期的經濟穩定。如果沒有本提案,2025年的增稅將會抑制復甦的努力,並妨礙經濟成長。投票贊成提案M,確保三藩市小企業得以有充滿活力的未來!RevitalizeSF.com。
三藩市總商會
三藩市西班牙裔商會
三藩市菲裔美國人商會
三藩市非裔美國人商會
這項論據的刊登費用的資金真正來源是:振興三藩市。
委員會提供資金的真正來源的三大貢獻者是:1. Google,2. Airbnb,3. 三藩市酒店協會。
3
贊成提案M的付費論據
拯救三藩市的小企業 - 投票贊成提案M
長期以來,三藩市一直是創新、文化和創業的燈塔,但是我們的小企業現在處於崩潰的邊緣。高商業稅和營運成本的無情壓力,再加上新冠疫情的衝擊,讓我們曾經繁華的街區變得一片荒涼。提案M為2,700多家小企業提供了必要的稅收減免,是我們復甦的生命線。如果沒有這項關鍵提案,從2025年1月開始的增稅負擔將危及本市的經濟復甦。透過免除企業的繁重城市商業稅,並取消超過1,000萬美元的許可證和執照費用,我們可以重振那些曾是三藩市標誌的蓬勃店面、舒適的餐廳和獨特的社區商店。贊成提案M,拯救我們的小企業!RevitalizeSF.com。
金門餐館協會
三藩市地區商人協會理事會
加州夜生活協會
這項論據的刊登費用的資金真正來源是:振興三藩市。
委員會提供資金的真正來源的三大貢獻者是:1. Google,2. Airbnb,3. 三藩市酒店協會。
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贊成提案M的付費論據
支持提案M,民主黨對經濟公平和社區福祉的承諾
作為本地民主黨的領袖,我們呼籲每一位三藩市人支持提案M。這項提案不僅關乎稅制改革,也是重申我們民主黨公平、經濟機會和社區福祉的核心價值觀。自新冠疫情以來,我們城市的小企業面臨了前所未有的挑戰。提案M透過簡化稅制和減少對這些重要企業的徵稅,確保各種規模的企業都能蓬勃發展。本提案代表了我們對促進創造就業和經濟穩定的承諾,這是實現疫情後公正復甦的重要部分。支持提案M不僅僅是投票贊成稅制改革,更是為了我們熱愛城市的公平和繁榮。RevitalizeSF.com。
Mary Jung,三藩市民主黨前主席*
Emma Heiken,三藩市民主黨縣中央委員會前副主席*
Trevor Chandler,三藩市民主黨縣中央委員會委員*
*作者僅以個人身份簽名,不代表任何組織。
這項論據的刊登費用的資金真正來源是:振興三藩市。
委員會提供資金的真正來源的三大貢獻者是:1. Google,2. Airbnb,3. 三藩市酒店協會。
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贊成提案M的付費論據
作為前市主計官,我堅決支持提案M。
自從新冠疫情以來,三藩市的大小企業均面臨了前所未有的挑戰。提案M旨在扭轉本市的局面,為2,700多家小企業提供急需的稅收減免,並取消數百萬美元的許可證和執照費用。 想一想我們城市的脈搏和活力:透過小企業就地招聘、社區參與和獨特產品所產生的脈動。如果不進行干預,小企業稅收將從2025年1月增加,進一步阻礙我們的經濟復甦,並損害三藩市社區的命脈。疫情暴露了我們的脆弱之處,但只要我們齊心協力,就能建設強大且有韌性的三藩市。投票贊成提案M!RevitalizeSF.com。
Ed Harrington,前市主計官
這項論據的刊登費用的資金真正來源是:振興三藩市。
委員會提供資金的真正來源的三大貢獻者是:1. Google,2. Airbnb,3. 三藩市酒店協會。
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贊成提案M的付費論據
支持提案M:一個包容和公平的三藩市進步願景
作為進步派領袖,我們堅決支持提案M。自新冠疫情發生以來,三藩市的無數小企業陷入困境,不僅影響了企業主的生計,也影響了我們所愛城市的活力和多元性。提案M是我們減少繁重稅負、簡化商業稅收制度的機會,為最需要的人提供急需的救濟。透過取消累退稅,提案M確保我們城市的經濟成長得以惠及各種規模的企業。本提案對於創造公平競爭環境、促進社區復原力,以及支持我們的社會正義和經濟公平的進步價值觀至關重要。投票贊成提案M ,為所有人創造更美好的未來!RevitalizeSF.com。
市議員Aaron Peskin
市議員Connie Chan
Norman Yee,市議會前主席
小企業前進組織
這項論據的刊登費用的資金真正來源是:振興三藩市。
委員會提供資金的真正來源的三大貢獻者是:1. Google,2. Airbnb,3. 三藩市酒店協會。
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贊成提案M的付費論據
拯救關鍵的無家可歸者服務 – 投票贊成提案M!
無家可歸問題是我們熱愛的這座城市面臨的最緊迫問題之一。提案M是我們確保無家可歸者服務關鍵資金來源的機會。在新冠疫情之後,我們只能仰賴較少的企業向無家可歸者基金供款。為了避免這些公司搬遷後造成重大稅收損失,提案M提供了一個解決方案:透過改革我們的稅收結構,可以擴大稅基,為基本的城市服務提供穩定的資金。這筆由商界提供的資金對於數以千計的三藩市人有居所至關重要。投票贊成提案M!RevitalizeSF.com。
Sharky Laguana,無家可歸監督聯盟*
三藩市無家可歸聯盟
Christin Evans,無家可歸監督委員會副主席*
*作者僅以個人身份簽名,不代表任何組織。
這項論據的刊登費用的資金真正來源是:振興三藩市。
委員會提供資金的真正來源的三大貢獻者是:1. Google,2. Airbnb,3. 三藩市酒店協會。
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贊成提案M的付費論據
提案M是三藩市的酒店業基本需要
作為三藩市酒店業的代表,我們堅決支持提案M。我們的酒店、餐廳和服務提供者結構成為三藩市旅遊經濟活力的三大支柱,每年接待數百萬旅客。新冠疫情使我們其中許多人瀕臨財務崩潰的邊緣。提案M取消過多的稅項和簡化稅收制度,為我們提供極需的救濟,使我們的企業得以恢復和繁榮。如果沒有這項提案,2025年即將發生的增稅有可能嚴重限制我們服務客人和維持就業的能力。為了維護酒店業在三藩市經濟和文化中不可或缺的作用,支持提案M是極為重要的。投票贊成提案M,使酒店業更加穩健,更有彈性!RevitalizeSF.com。
Alex Bastian,三藩市酒店協會主席與首席執行官
Tony Roumph,三藩市酒店協會董事會成員
金門餐館協會
加州夜生活協會
這項論據的刊登費用的資金真正來源是:振興三藩市。
委員會提供資金的真正來源的三大貢獻者是:1. Google,2. Airbnb,3. 三藩市酒店協會。
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贊成提案M的付費論據
支持提案M:振興三藩市市中心的關鍵
三藩市市中心是本市的經濟中心,但是新冠疫情的持續影響已經造成了嚴重的損失。許多企業已經關門結業,人流量也在減少。我們必須為商業核心注入新的活力。提案M是我們復甦的關鍵,提供了必要的稅收減免,並簡化複雜的稅法。透過減輕大型和小型企業的稅收負擔,本提案將激勵企業重返市中心。提案M將恢復我們街道的活力,刺激就業,並提高我們城市的整體經濟健康。投票支持提案M,振興我們的金融區和市中心商業社區!RevitalizeSF.com。
三藩市酒店協會
金門餐館協會
三藩市建築物業主和管理者協會
三藩市總商會
這項論據的刊登費用的資金真正來源是:振興三藩市。
委員會提供資金的真正來源的三大貢獻者是:1. Google,2. Airbnb,3. 三藩市酒店協會。
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贊成提案M的付費論據
作為三藩市的華人企業主,我們極力支持提案M。
新冠疫情對三藩市的小企業社區留下了持久的印記。在營運成本飆升、顧客減少的情況下,許多小企業艱難度日,很多已關門結業。本提案將明確地免除2,700多家小企業的城市商業稅,為他們提供生存和發展的財務喘息空間。此外,本提案也將取消超過1,000萬美元的餐廳、酒店、藝術和社區商店執照費,鼓勵新的投資並振興我們的社區。投票贊成提案M對於重振三藩市和確保所有企業的繁榮未來至關重要。RevitalizeSF.com。
Cynthia Huie,On Waverly*
Cyn Wang,Wang Insurance*
Tane O. Chan,Wok Shop*
*作者僅以個人身份簽名,不代表任何組織。
這項論據的刊登費用的資金真正來源是:振興三藩市。
委員會提供資金的真正來源的三大貢獻者是:1. Google,2. Airbnb,3. 三藩市酒店協會。
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贊成提案M的付費論據
提案M是對三藩市拉丁裔企業的重要支持
自新冠疫情發生以來,我們許多人一直在苦苦掙扎,保持開門營業。這項提案針對性地減輕小企業的稅務,包括我們喜愛的隣里餐廳和商店。取消超過1,000萬美元的執照費,對於許多餐廳、酒店和社區商店而言,是繼續營業還是永久關閉的分別。提案M簡化稅收制度,提供可預見性和穩定性,對於我們的生存和發展為基本需要。如果不這樣做,2025年增加的稅收將會威脅我們社區的企業。我們需要這項改革來振興城市,確保拉丁裔企業主擁有繁榮的未來。投票贊成提案M!
Denise Gonzalez,Luz de Luna*
Jonathan Hernandez,Latin American Barbers*
*作者僅以個人身份簽名,不代表任何組織。
這項論據的刊登費用的資金真正來源是:振興三藩市。
委員會提供資金的真正來源的三大貢獻者是:1. Google,2. Airbnb,3. 三藩市酒店協會。
12
贊成提案M的付費論據
贊成提案M:賦權LGBTQ企業
在我們的社區中,三藩市獨特及蓬勃的小企業正面臨風險,而提案M正是我們迫切需要的生命線。自新冠疫情發生以來,全市的LGBTQ企業面臨了前所未有的挑戰,許多企業瀕臨倒閉。這項免稅不是奢侈品,而是確保這些對三藩市不可或缺的企業能夠生存和發展的必要條件。透過簡化稅收制度並擴大小企業的減稅,提案M旨在確保那些體現我們多元化社區精神的企業能夠穩定和發展。如果沒有這項提案,明年的小企業稅收勢必增加,這個打擊將導致很多企業無法生存。投票贊成提案M,支持LGBTQ企業和一個兼容的三藩市!RevitalizeSF.com
Christin Evans,Booksmith*
Alice B. Toklas LGBTQ民主黨俱樂部
*作者僅以個人身份簽名,不代表任何組織。
這項論據的刊登費用的資金真正來源是:振興三藩市。
委員會提供資金的真正來源的三大貢獻者是:1. Google,2. Airbnb,3. 三藩市酒店協會。
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贊成提案M的付費論據
投票贊成M,振興我們的城市
新冠疫情在三藩市留下了恆久的印記,使我們充滿活力的市中心變得面目全非。辦公室的空置率達到歷史新高,像聯合廣場這樣的地標性建築也隨著商店關閉而失去了吸引力。解決方案很明確:我們迫切需要振興城市中心,以吸引和留住企業,而提案M就是我們前進之路。提案M將吸引不同的經濟行業回歸,獎勵那些為三藩市保留和創造就業機會的公司。試想一下,市中心再次熱鬧不已,辦公大樓塞滿了員工,遊客蜂擁到酒店,本地人支持他們喜愛的藝術和娛樂場所。投票贊成提案M,為我們珍惜的城市注入新的活力!RevitalizeSF.com
三藩市建築及行業協會
這項論據的刊登費用的資金真正來源是:振興三藩市。
委員會提供資金的真正來源的三大貢獻者是:1. Google,2. Airbnb,3. 三藩市酒店協會。
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贊成提案M的付費論據
支持提案M,振興三藩市的娛樂業
我們的酒吧、夜總會、劇院和其他娛樂場所是三藩市文化和社交生活的基石。從米慎區充滿活力的夜生活到SOMA劇院的嶄新表演,這些場所吸引顧客光顧我們社區的企業,並為我們的城市注入獨特的精神。自從新冠疫情發生以來,許多企業都在為生存而掙扎,無法承受經濟壓力。提案M透過消除繁重的稅收和簡化稅制,提供至關重要的舒緩,使我們的企業能夠生存和發展。沒有這提案,預計2025年開始的增稅可能會迫使許多場所永久關閉,進一步侵蝕我們城市的文化版圖。支持三藩市娛樂業,投票贊成提案M!RevitalizeSF.com。
加州夜生活協會
Cyn Wang,三藩市娛樂委員會副主席*
*作者僅以個人身份簽名,不代表任何組織。
這項論據的刊登費用的資金真正來源是:振興三藩市。
委員會提供資金的真正來源的三大貢獻者是:1. Google,2. Airbnb,3. 三藩市酒店協會。
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贊成提案M的付費論據
投票贊成提案M ,保護隣里企業
三藩市的心臟和靈魂就在於街道兩旁、構成我們社區的小企業。然而,自從新冠疫情以來,這些小企業一直苦苦掙扎地開門營業。作為社區的積極保護者,我看到支持作為我們地區支柱的小企業是多麼重要。提案M大幅減輕了我們喜愛的本地企業的經濟負擔,成為它們的希望燈塔。如果沒有提案M,這些小企業將從2025年1月起面臨增稅,危及我們城市正在蓄勢待發的經濟復甦。提案M是重建三藩市的關鍵一環,不是為了少數人,而是為了所有人。RevitalizeSF.com。
Aaron Peskin,市議會主席*
*作者僅以個人身份簽名,不代表任何組織。
這項論據的刊登費用的資金真正來源是:振興三藩市。
委員會提供資金的真正來源的三大貢獻者是:1. Google,2. Airbnb,3. 三藩市酒店協會。
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贊成提案M的付費論據
投票贊成提案M — 三藩市經濟復甦的生命線
我們深愛的三藩市正處於十字路口。自從新冠疫情以來,我們充滿活力的城市目睹了小企業的倒閉和大企業的離開,使我們很容易受到經濟衝擊的影響,並威脅到城市關鍵性的服務的穩定性。想像一下,在三藩市,小企業蓬勃發展,餐廳和藝術場所欣欣向榮,城市的經濟穩定不再依賴於幾家大公司。提案M旨在免除2,700家小企業的營業稅以及取消1,000萬美元的許可證費和執照費,使這願景成為事實。這項提案也將削減工資稅,激勵企業召回員工。為了我們的社區和未來,加入我們,投票贊成提案M,扭轉本市的局面!RevitalizeSF.com。
GrowSF
TogetherSF
這項論據的刊登費用的資金真正來源是:振興三藩市。
委員會提供資金的真正來源的三大貢獻者是:1. Google,2. Airbnb,3. 三藩市酒店協會。
17
贊成提案M的付費論據
投票贊成提案M,振興三藩市小企業!
提案M不僅僅是一項稅收改革,更是我們本地企業的生命線。作為兩屆市議員和擁有經營小企業第一手經驗的市長候選人,我深知支持本地企業的迫切性。如果不立即採取干預措施,2025年1月起將開始對小企業增稅,進一步阻礙我們的經濟復甦。根據提案M,90%以上餐廳將見到減稅,88%的餐廳將無需繳納任何營業稅。它給那些把員工留在三藩市、把人們帶回市中心、為當地經濟做出貢獻的公司提供獎勵。我們有能力創造一個更公平而蓬勃的城市,請和我一起投票贊成提案M!RevitalizeSF.com。
市議員Ahsha Safai
這項論據的刊登費用的資金真正來源是:振興三藩市。
委員會提供資金的真正來源的三大貢獻者是:1. Google,2. Airbnb,3. 三藩市酒店協會。
18
贊成提案M的付費論據
為了一個欣欣向榮的三藩市,投票贊成提案M!
讓我們齊心協力,支持提案M,創造一個充滿活力的三藩市,讓街區生機勃勃,遊客興致盎然,市中心每天都因種種活動而熱鬧非凡。 為了大小企業的未來,是時候扭轉三藩市的局面了。作為土生土長的三藩市人,我親眼目睹了作為社區核心的小企業如何在新冠疫情後持續面臨前所未有的挑戰。這就是我為何支持提案M的原因—提案M將額外免除2,700家小企業的營業稅,鼓勵僱主讓員工重返工作崗位,並催化醫療保健、酒店、藝術、娛樂、製造和清潔技術等行業的發展。為了三藩市欣欣向榮的未來,投票贊成提案M!RevitalizeSF.com。
Mark Farrell,三藩市前市長和前市議員
這項論據的刊登費用的資金真正來源是:振興三藩市。
委員會提供資金的真正來源的三大貢獻者是:1. Google,2. Airbnb,3. 三藩市酒店協會。
19
贊成提案M的付費論據
讓我們坦白說,市政廳過去曾向小企業做出承諾,但是並未兌現。創業家在沒有得到所需的支持之餘,他們反而陷入官僚主義的羅網之中,被丟在面對無家可歸、毒品交易和心理健康危機的前線之中。提案M是我們為小企業提供真正推動力、刺激疲軟經濟復甦的機會。
我是土生土長的三藩市人,也是兩個學齡兒童的父親,我希望為我們的城市創造一個讓他們能得以自豪的未來。
提案M將重組我們的商業稅,使其更公平公正,減輕或消除小企業的稅務擔子,同時確保本市的稅收更具彈性。我們目前的稅收結構過於依賴少數幾家公司,在經濟衰退時會危及提供城市服務的資金,無法支持小企業、創新和創造就業。
這不僅僅是為了解決市政廳造成的問題,而是為了推動三藩市向前發展。透過使小企業更容易經營及發展,提案M將刺激我們極需的經濟復甦,為我們的街道帶來就業、活力和經濟穩定。
讓我們不單是談論解決方案,而是付諸實施。投票贊成提案M,幫助打造一個小企業能夠蓬勃發展、稅收體系公平穩定的三藩市,並齊心協力應對共同的挑戰。RevitalizeSF.com。
Daniel Lurie,非營利組織高管
這項論據的刊登費用的資金真正來源是:振興三藩市。
委員會提供資金的真正來源的三大貢獻者是:1. Google,2. Airbnb,3. 三藩市酒店協會。
20
贊成提案M的付費論據
投票贊成提案M,為了三藩市經濟復甦
作為三藩市第45任市長,我帶領這座城市渡過了一個世紀以來最嚴重的公共衛生危機。儘管我們的城市已經取得了長足的進步,但是小企業仍在艱難地恢復。我懇請您和我一起支持提案M,這是一項將幫助我們社區企業復甦的關鍵提案。透過吸引和留住各種規模的企業,提案M將創造更有活力和彈性的經濟。我們必須繼續營造一個可持續發展的環境,使企業能夠蓬勃發展,創造就業機會,並提高所有居民的生活質素。透過穩定經濟基礎,我們將確保城市未來的財政健康。請投票贊成提案M,以確保我們所熱愛的城市擁有繁榮昌盛的未來。RevitalizeSF.com。
市長London Breed
這項論據的刊登費用的資金真正來源是:振興三藩市。
委員會提供資金的真正來源的三大貢獻者是:1. Google,2. Airbnb,3. 三藩市酒店協會。
Paid Arguments Against Proposition M
無人提交反對提案提案M的付費論據
Legal Text
Be it ordained by the People of the City and County of San Francisco:
NOTE: Unchanged Code text and uncodified text are in plain font.
Additions to Codes are in single-underline italics Times New Roman font.
Deletions to Codes are in strikethrough italics Times New Roman font.
Asterisks (* * * *) indicate the omission of unchanged Code
subsections or parts of tables.
Section 1. Title. This initiative is known and may be referred to as the “Local Small Business Tax Cut Ordinance.”
Section 2. Article 2 of the Business and Tax Regulations Code is hereby amended by revising Section 76.3 to read as follows:
SEC. 76.3. WAIVER OF FIRST-YEAR PERMIT, LICENSE, AND BUSINESS REGISTRATION FEES.
(a) Definitions. Unless otherwise defined in this Section 76.3, the terms used in this Section shall have the meanings given to them in Article 6 of the Business and Tax Regulations Code, as amended from time to time. For purposes of this Section 76.3, the following definitions shall apply:
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“San Francisco Gross Receipts” has the same meaning as used in Section 855 of Article 12 of the Business and Tax Regulations Code, as may be amended from time-to-time.
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Section 3. Article 6 of the Business and Tax Regulations Code is hereby amended by revising Sections 6.8-2, 6.9-1, 6.9-4, 6.11-2, 6.15-1, 6.15-2, and 6.17-1.1, and adding Sections 6.2‑15.1, 6.2-17.1, and 6.25-1, to read as follows:
SEC. 6.2-15.1. REGISTRATION YEAR; 2025-2026 REGISTRATION YEAR.
(a) For registration periods ending on or before June 30, 2025, the term “registration year” means the fiscal year commencing July 1 of each calendar year and ending on June 30 of the subsequent calendar year.
(b) The term “2025-2026 registration year” means the period commencing on July 1, 2025 and ending on March 31, 2026.
(c) For registration periods commencing on or after April 1, 2026, the term “registration year” means the period commencing April 1 of each calendar year and ending on March 31 of the subsequent calendar year.
SEC. 6.2-17.1. “SAN FRANCISCO GROSS RECEIPTS.”
The term “San Francisco Gross Receipts” means gross receipts attributable to the City as described in Sections 955 and 956 of Article 12‑A‑1 of this Business and Tax Regulations Code.
SEC. 6.8-2. CREDITS AND EXEMPTIONS; TAX DIFFERENCES.
The credits, and exemptions, and differences in tax treatment set forth in Articles 6, 7, 8, 9, 10, 10B, 11, 12, 12-A-1, 12‑C, 21, 28, 29, 29A , 30, 32, and 33 of this Business and Tax Regulations Code, in laws applicable to fees administered pursuant to this Article 6, and in laws applicable to assessments levied pursuant to the Property and Business Improvement District Law of 1994 (California Streets and Highways Code sections 36600 et seq.) or Article 15 of this Code, are provided on the assumption that the City has the power to authorizeoffer such credits, and exemptions, and differences in tax treatment. If a credit, or exemption, or difference in tax treatment is invalidated by a court of competent jurisdiction, the taxpayer must pay any additional amount that the taxpayer would have owed but for such invalid credit,or exemption, or difference in tax treatment. Amounts owed as a result of the invalidation of a credit, or exemption, or difference in tax treatment that are paid within three years after the decision of the court becomes final shall not be subject to interest or penalties.
SEC. 6.9-1. RETURNS AND PAYMENTS.
(a) Returns Generally. Except as otherwise provided in this Business and Tax Regulations Code, on or before the due date, or in the event of cessation of business within 3015 days of such cessation, each taxpayer shall file a return for the subject period on a form provided by the Tax Collector, regardless of whether there is a tax liability owing. A taxpayer who has not received a return form from the Tax Collector is responsible for obtaining such form and filing a return, and the failure of the Tax Collector to furnish the taxpayer with a return shall not relieve the taxpayer of any payment or filing obligation. Returns shall show the amount of tax paid, collected, or otherwise due for the subject period and such other information as the Tax Collector may require. Each taxpayer shall transmit the return, together with the remittance of the tax due, to the Tax Collector at the Tax Collector’s Office on or before the due date specified in this Section 6.9-1. Filing a return that the Tax Collector determines to be incomplete in any material respect may be deemed failure to file a return in violation of this Section 6.9-1(a).
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(c) Gross Receipts Tax, Early Care and Education Commercial Rents Tax, Homelessness Gross Receipts Tax, Cannabis Business Tax, and Overpaid Executive Gross Receipts Tax.
(1) Annual Due Date. Except for any extensions granted under Section 6.9-4 or as otherwise provided in this Business and Tax Regulations Code, returns and payments of 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) or Section 2804.9 of Article 28), the Cannabis Business Tax (Article 30), and the Overpaid Executive Gross Receipts Tax (Article 33) (including the overpaid executive administrative office tax imposed under Section 3303(dg) of Article 33) are due and payable, and shall be delinquent if not submitted and paid to the Tax Collector, on or before the last day of February of the succeeding year.
(2) Small Business Exemption. A person or combined group that qualifies for the small business exemption in Section 954.1 of Article 12-A-1 shall be exempt from filing a Gross Receipts Tax return, an Early Care and Education Commercial Rents Tax return, a Homelessness Gross Receipts Tax return, and, except for a person or combined group subject to the overpaid executive administrative office tax imposed under Section 3303(d) of Article 33, an Overpaid Executive Gross Receipts Tax return. Notwithstanding the preceding sentence, any person taking the Payroll Expense Tax Exclusion Credit in Section 960 of Article 12-A-1 must file a Gross Receipts Tax return, regardless of whether such person qualifies for the small business exemption from the Gross Receipts Tax. A person or combined group that qualifies for the small business exemption in Section 2106 of Article 21 shall be exempt from filing an Early Care and Education Commercial Rents Tax return, and except that any person taking the credit for child care facilities in Section 2106.1 of Article 21 must file an Early Care and Education Commercial Rents Tax return, regardless of whether such person qualifies for the small business exemption from the Gross Receipts Early Care and Education Commercial Rents Tax. This subsection (c)(2) shall not apply to persons or combined groups subject to taxes on administrative office business activities in Section 953.8 of Article 12-A-1, Sections 2804(d) or 2804.9 of Article 28, or Section 3303(g) of Article 33.
(3) Estimated Tax Payments. Except as provided in Section 6.9-1(c)(3)(D) with respect to estimated tax payments of the Gross Receipts Tax, Homelessness Gross Receipts Tax, and Overpaid Executive Gross Receipts Tax, every person or combined group liable for payment of 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) or Section 2804.9 of Article 28), the Cannabis Business Tax (Article 30), or the Overpaid Executive Gross Receipts Tax (Article 33) (including the overpaid executive administrative office tax imposed under Section 3303(dg) of Article 33) shall make three estimated tax payments, in addition to the annual payments in Section 6.9-1(c)(1), as follows:
(A) Due Dates. The first, second, and third estimated tax payments for a tax year shall be due and payable, and shall be delinquent if not paid on or before, April 30, July 31, and October 31, respectively, of that tax year. Estimated tax payments shall be a credit against the person or combined group’s total annual liability, as applicable, for the Gross Receipts Tax (including the tax on administrative office business activities imposed under Section 953.8 of Article 12-A-1), Early Care and Education Commercial Rents Tax, Homelessness Gross Receipts Tax (including the homelessness administrative office tax imposed under Section 2804(d) or Section 2804.9 of Article 28), Cannabis Business Tax, or Overpaid Executive Gross Receipts Tax (including the overpaid executive administrative office tax imposed under Section 3303(dg) of Article 33), for the tax year in which such estimated tax payments are due.
(B) Gross Receipts Tax Estimated Tax Payments. 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, 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 and timely requested an extension under Section 6.9-4 of this Article 6 to file that return, the person or combined group’s Gross Receipts Tax liability (including any liability for the tax on administrative office business activities) for the preceding tax year for purposes of this subsection (c)(3)(B)(ii) shall be deemed to be the amount of any payment required under Section 6.9‑4 as a condition of such extension. If the person or combined group did not file a return for the preceding tax year and did not request an extension under Section 6.9-4 to file that return, the person or combined group shall owe 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) for the current tax year. For purposes of this Section 6.9‑1subsection (c)(3)(B)(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.
(C) Estimated Tax Payments for Early Care and Education Commercial Rents Tax, Homelessness Gross Receipts Tax, Cannabis Business Tax, and Overpaid Executive Gross Receipts Tax. A person or combined group’s estimated tax payments of the Early Care and Education Commercial Rents Tax, Homelessness Gross Receipts Tax (including the homelessness administrative office tax imposed under Section 2804(d) or Section 2804.9 of Article 28), Cannabis Business Tax, and Overpaid Executive Gross Receipts Tax (including the overpaid executive administrative office tax imposed under Section 3303(dg) of Article 33), shall each equal the lesser of:
(i) 25% of the applicable tax liability 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 tax liability for the tax year); or
(ii) 25% of the applicable tax liability 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 and timely requested an extension under Section 6.9-4 of this Article 6 to file that return, the person or combined group’s applicable tax liability for the preceding tax year for purposes of this subsection (c)(3)(C)(ii) shall be deemed to be the amount of any payment required under Section 6.9‑4 as a condition of such extension. If the person or combined group did not file a return for the preceding tax year and did not request an extension under Section 6.9-4 to file that return, the person or combined group shall be deemed to have filed a return showing no liability for purposes of this Section 6.9-1subsection (c)(3)(C)(ii), and no estimated tax payments of that tax shall be due for the current tax year.
(D) Lessor of Residential Real Estate Exemption. Notwithstanding any other provision in this Section 6.9-1(c)(3), a lessor of residential real estate, as defined in Section 954.1 of Article 12-A-1, shall not be required to make estimated tax payments under this Section 6.9‑1(c)(3), but shall pay its full Gross Receipts Tax liability, Homelessness Gross Receipts Tax liability, and Overpaid Executive Gross Receipts Tax liability on or before the last day of February of the succeeding year, or the extended deadline in Section 6.9-4, if the lessor’s gross receipts within the City shown on the lessor’s return for either the current tax year or the preceding tax year did not exceed the threshold in Section 954.1(b) of Article 12‑A-1.
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(g) Business Registration Certificate; Annual Due Date.
(1) For registration years ending on or before June 30, 2025 and the 2025‑2026 registration year, eExcept for any extensions granted under Section 6.9-4 or as otherwise provided in this Business and Tax Regulations Code, returns and payments of the Business Registration Fee (Article 12) shall be filed annually and are due and payable, and shall be delinquent if not submitted and paid to the Tax Collector, on or before the last day of May preceding the registration year commencing July 1 of that year.
(2) For registration years beginning on or after April 1, 2026, except for any extensions granted under Section 6.9-4 or as otherwise provided in this Business and Tax Regulations Code, returns and payments of the Business Registration Fee shall be filed annually and are due and payable, and shall be delinquent if not submitted and paid to the Tax Collector, on or before the last day of February preceding the registration year commencing April 1 of that year.
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SEC. 6.9-4. EXTENSION OF TIME FOR FILING A RETURN AND PAYING TAX.
(a) The following shall apply to tax years and tax periods ending on or before December 31, 2024, registration years ending on or before June 30, 2025, and the 2025‑2026 registration year:
(1) For good cause, the Tax Collector, in the Tax Collector’s discretion, may extend, for a period not to exceed 60 days, the time for filing any return, other than a Vacancy Tax (Article 29) or Empty Homes Tax (Article 29A) return, pursuant to this Article 6 or regulations prescribed by the Tax Collector. For taxes required to be deposited monthly, or for the Sugary Drinks Distributor Tax (Article 8), the Tax Collector may only extend the time for filing a return for a period not to exceed 30 days. As a condition of such extension, the person seeking the extension shall make a payment of not less than 100% of such person’s liability for such period.
(2b) Failure to make the required 100% payment will result in the automatic denial of the person’s extension and the person being subject to the standard due dates in this Article 6, including any penalties, interest, fees, and other consequences of failing to file and pay by those due dates.
(b) The following shall apply to tax years and tax periods beginning on or after January 1, 2025, and registration years beginning on or after April 1, 2026:
(1) For good cause, the Tax Collector, in the Tax Collector’s discretion, may extend, for a period not to exceed 60 days, the time for filing any return, other than returns for the Business Registration Fee (Article 12), Gross Receipts Tax (Article 12‑A‑1) (including the tax on administrative office business activities in Section 953.8 of Article 12-A-1), Homelessness Gross Receipts Tax (Article 28) (including the tax on administrative office business activities in Section 2804(d) or Section 2804.9 of Article 28), Early Care and Education Commercial Rents Tax (Article 21), Vacancy Tax (Article 29), Empty Homes Tax (Article 29A), Cannabis Business Tax (Article 30), or Overpaid Executive Gross Receipts Tax (Article 33) (including the tax on administrative office business activities in Section 3303(g)), pursuant to this Article 6 or regulations prescribed by the Tax Collector. For taxes required to be deposited monthly, or for the Sugary Drinks Distributor Tax (Article 8), the Tax Collector may only extend the time for filing a return for a period not to exceed 30 days. As a condition of the extensions under this subsection (b)(1), the person seeking the extension shall make a payment of not less than 100% of such person’s liability for such period. Failure to make the required 100% payment will result in the automatic denial of the person’s extension and the person being subject to the standard due dates in this Article 6, including any penalties, interest, fees, and other consequences of failing to file and pay by those due dates.
(2) For returns of the Gross Receipts Tax (Article 12‑A‑1) (including the tax on administrative office business activities in Section 953.8 of Article 12-A-1), Early Care and Education Commercial Rents Tax (Article 21), Homelessness Gross Receipts Tax (Article 28) (including the tax on administrative office business activities in Section 2804(d) or Section 2804.9 of Article 28), Cannabis Business Tax (Article 30), or Overpaid Executive Gross Receipts Tax (Article 33) (including the tax on administrative office business activities in Section 3303(g)), persons may request from the Tax Collector an extension of time to file one or more such returns, which extension would extend the deadline to file such return to November 30 of the calendar year in which the return was originally due under Section 6.9-1 of this Article 6. As a condition of such extension, the person seeking the extension shall, by the original due date under Section 6.9-1 for filing the return, for each tax type, request the extension and make the Required Payment, and, by the November 30 extended deadline, file the return. An extension for the Gross Receipts Tax (including the tax on administrative office business activities in Section 953.8 of Article 12-A-1) return shall also extend to November 30 the deadline to pay any Business Registration Fee liability in excess of the Required Payment necessary for the extension.
(3) For purposes of this subsection (b), the “Required Payment” means:
(A) For an extension of a Gross Receipts Tax return, a payment of not less than the sum of:
(i) 110% of such person’s Gross Receipts Tax liability, prior to the application of any payments, as reported on the later of:
a. Such person’s original return for the tax year immediately preceding the tax year for which the extension is being requested; or
b. Such person’s amended return, filed on or before the due date for the extension request, for the tax year immediately preceding the tax year for which the extension is being requested; and
(ii) Such person’s Business Registration Fee, calculated by applying the current registration year rates to 110% of such person’s San Francisco Gross Receipts or San Francisco payroll expense, as applicable, as reported on the later of:
a. Such person’s original Gross Receipts Tax return for the tax year immediately preceding the tax year for which the extension is being requested; or
b. Such person’s amended Gross Receipts Tax return, filed on or before the due date for the extension request, for the tax year immediately preceding the tax year for which the extension is being requested; and
(B) For an extension of an Early Care and Education Commercial Rents Tax, Homelessness Gross Receipts Tax, Cannabis Business Tax, or Overpaid Executive Gross Receipts Tax return, a payment of not less than 110% of such person’s liability, prior to the application of any payments, for each tax type for which an extension is being requested, as reported on the later of:
(i) Such person’s original return for the tax year immediately preceding the tax year for which the extension is being requested; or
(ii) Such person’s amended return, filed on or before the due date for the extension request, for the tax year immediately preceding the tax year for which the extension is being requested.
(4) For purposes of determining the amount of the Required Payment, if a person did not file a return for a tax type and tax year before the due date for the extension request, the person’s liability and San Francisco Gross Receipts for that tax type and tax year shall be deemed to be zero.
(5) For purposes of extensions requested under subsection (b)(2), failure to timely make the Required Payment for a tax type, or failure to file the return by the November 30 extended deadline for a tax type, will result in the automatic denial of the person’s extension request for that tax type and the person being subject to the standard due dates in this Article 6, including any penalties, interest, and fees, each calculated from those standard due dates, and other consequences of failing to file and pay by those due dates.
(c) Notwithstanding subsections (a) and (b) of this Section 6.9-4, the Tax Collector may extend any time for filing any return or payment of tax or excuse penalties for any late filing or late payment by a period not to exceed 60 days if billing or other administrative duties of the Tax Collector cannot be performed in a timely manner.
SEC. 6.11-2. DEFICIENCY DETERMINATIONS; REVOCATION DETERMINATIONS; NOTICE AND SERVICE.
(a) Upon making a determination pursuant to Section 6.11-1 or Section 6.11-1.1, as applicable, or upon making a determination pursuant to Section 6.6-1 that a certificate shall not be issued or to revoke a registration, the Tax Collector shall give to the taxpayer or other person affected written notice of the Tax Collector’s determination. Except in the case of fraud, intent to evade the Business and Tax Regulations Code or rules and regulations issued by the Tax Collector, or failure to file a return, in all of which cases there is no statute of limitations, every notice of a deficiency determination shall be served within three years after the date that a return was due for a tax for the reporting period or three years after the return was actually filed for that reporting period, whichever is later. The taxpayer may agree in writing to extend said period for service of a notice of a deficiency determination. For purposes of serving a notice of a deficiency determination under this Section 6.11‑2, the date that a return was due shall be:
(1) For tax years and tax periods ending on or before December 31, 2021, and registration years ending on or before June 30, 2023, the due date of the return without regard to any extensions under Section 6.9-4;
(2) For tax years and tax periods beginning on or after January 1, 2022, and registration years beginning on or after July 1, 2023 and ending on or before March 31, 2026, except for the taxes for the years and periods subject to subsection (a)(3) of this Section 6.11-2, the due date of the return including any extensions; or
(3) For the Gross Receipts Tax (Article 12‑A‑1) (including the tax on administrative office business activities in 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 tax on administrative office business activities in Section 2804(d) or Section 2804.9 of Article 28), the Cannabis Business Tax (Article 30), and the Overpaid Executive Gross Receipts Tax (Article 33) (including the tax on administrative office business activities in Section 3303(g)) for tax years beginning on or after January 1, 2025, and for the Business Registration Fee (Article 12) for registration years beginning on or after April 1, 2026, November 30 of the calendar year in which the return for such respective tax was originally due.
(b) The notice of any determination under this Section 6.11-2 may be served upon the taxpayer or other affected person personally or by mail; if by mail, service shall be:
(1) to the last known address that appears in the Tax Collector’s records, provided there is such an address in the Tax Collector’s records, or
(2) to an address that the Tax Collector concludes, in the Tax Collector’s discretion, is the last known address of the person(s).
(c) In case of service by mail of any notice required by this Article 6 to be served upon the taxpayer or other person, the service is complete at the time of deposit with the United States Postal Service.
SEC. 6.15-1. REFUNDS.
(a) Claims for Refund; Limitations. Except as otherwise provided in subsections (f) and (g) of this Section 6.15-1, the Controller shall refund or cause to be refunded the amount of any tax, interest, or penalty that has been overpaid or paid more than once, or has been erroneously or illegally collected or received by the City, provided the person that paid such amount files a claim in writing with the Controller within the one year of the date specified in subsection (h) of this Sectionlater of one year of: (1) payment of such amount; (2) the date the return accompanying such payment was due, without regard to any extensions under Section 6.9-4; or (3) the date on which such amount requested on a return, amended return, or request for refund timely filed under subsection (g) of this Section 6.15-1 was denied under that subsection (g).
(b) Claims for Refund; Contents. Any claim filed under subsections (a)-(f) of this Section 6.15-1 must state: (1) the specific amount claimed to have been overpaid or paid more than once, or erroneously or illegally collected or received by the City; (2) the tax periods at issue; (3) the grounds upon which the claim is founded, with specificity sufficient to enable the responsible City officials to understand and evaluate the claim; and (4) the date on which the amount requested on a return, amended return, or request for refund timely filed under subsection (g) of this Section 6.15-1 was denied under that subsection (g), if the person filing the claim filed such a return, amended return, or request for refund.
(c) Claims for Refund; Third-Party Taxes. The customer who pays a third-party tax to an operator is the proper party to seek the refund of a disputed third-party tax. No operator or other person responsible for collecting or remitting a disputed third-party tax may obtain a tax refund unless that operator or other person proves that the tax has not been passed on to its customers or any other person.
(d) Claims for Refund; Applicable Law. Claims for refund shall be made according to California Government Code, Title l, Division 3.6, Part 3. For purposes of subsections (a)‑(f) of this Section 6.15-1, a claim shall be deemed to accrue on the date specified in subsection (h) of this Sectionlater of: (1) the date the return was due, without regard to any extensions under Section 6.9-4; (2) the date the tax was paid; or (3) the date the refund requested on a return, amended return, or request for refund timely filed pursuant to subsection (g) of this Section 6.15-1 was denied under said subsection (g). The Controller shall furnish a form to be used for claims.
(e) Claims for Refund; Actions by the City. The Controller shall enter the claim in the claim register, and shall forthwith forward it to the City Attorney. The City Attorney is designated to take such actions on claims as authorized by California Government Code, Title 1, Division 3.6, Part 3, Chapter 2, except that the City Attorney’s authority with regard to rejecting or allowing claims shall be as provided in this Section 6.15-1. The City Attorney may reject the claim, and shall notify the claimant of such rejection. Allowance or compromise and settlement of claims under this Section 6.15-1 in excess of $25,000 shall require the written approval of the City Attorney and approval of the Board of Supervisors by resolution. The City Attorney may allow or compromise and settle such claims if the amount is $25,000 or less. No claim may be paid until the Controller certifies that monies are available from the proper funds or appropriations to pay the claim as allowed or as compromised and settled. If the City approves the claim, the City may refund the excess amount collected or paid, or may credit such amount toward any amount due and payable to the City from the person from whom it was collected or by whom it was paid, and the balance may be refunded to such person, or the person’s administrator or executor.
(f) Claims for Refund; Waiver of Written Filing Requirement. The City Attorney, in his or herthe City Attorney’s discretion and upon good cause shown, prior to the expiration of the one-year limitations period, may waive the requirement set forth in subsection (a) of this Section 6.15-1 that a taxpayer file a written claim for a refund in any case in which the Tax Collector and City Attorney determine on the basis of other evidence that:
(1) an amount of tax, interest, or penalty has been overpaid or paid more than once, or has been erroneously or illegally collected or received by the City; and
(2) all other conditions precedent to the payment of a refund to the taxpayer have been satisfied.
(g) Requests for Refund; Refunds Permissible Without a Claim.
(1) The Tax Collector may authorize the Controller to refund tax, interest, or penalty payments, without a refund claim having been filed and without review by the City Attorney, if the Tax Collector determines that the amount paid exceeds the tax, penalties, and interest due.
(2) The person that made the overpayment may request such a refund from the Tax Collector on a return, amended return, or request for refund form that is issued by the Tax Collector and that is filed with the Tax Collector within the later of one year of:
(A) For tax years and tax periods ending on or before December 31, 2021, and registration years ending on or before June 30, 2023:
(i) the payment of such amount; or
(ii) the date the return accompanying such payment was due, without regard to any extensions under Section 6.9-4.
(B) For tax years and tax periods beginning on or after January 1, 2022, and registration years beginning on or after July 1, 2023 and ending on or before March 31, 2026, except for requests for refund subject to subsection (g)(2)(C):
(i) the payment of such amount; or
(ii) the date the return accompanying such payment was due, including any extensions.
(C) For requests for refund of the Gross Receipts Tax (Article 12‑A‑1) (including the tax on administrative office business activities in 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 tax on administrative office business activities in Section 2804(d) or Section 2804.9 of Article 28), the Cannabis Business Tax (Article 30), and the Overpaid Executive Gross Receipts Tax (Article 33) (including the tax on administrative office business activities in Section 3303(g)) for tax years beginning on or after January 1, 2025, and for requests for refund of the Business Registration Fee (Article 12) for registration years beginning on or after April 1, 2026:
(i) the payment of such amount; or
(ii) November 30 of the calendar year in which the return for such respective tax was originally due.
(3) The Tax Collector may also authorize the Controller to refund the overpaid tax, interest, or penalty payments on its own initiative within this the one-year period in subsection (g)(2).
(4) A refund requested on a return, amended return, or request for refund form under this subsection (g) shall automatically be deemed denied for purposes of subsections (a), (b), and (d) of this Section 6.15-1 if the Tax Collector does not grant or deny the refund request within one year of the date it was filed. The Tax Collector may not grant a request for refund after this one‑year period, and any action by the Tax Collector after a refund request under this subsection (g) has been deemed denied shall not constitute a denial and shall have no effect on the statute of limitations for filing a claim for refund under subsections (a)-(f) and (h) of this Section 6.15-1.
(5) In lieu of requesting a refund on a return, amended return, or request for refund form, a taxpayer may elect to apply an overpayment of the business registration fee in Article 12, the Gross Receipts Tax in Article 12-A-1 (including the tax on administrative office business activities under Section 953.8 of Article 12-A-1), the Sugary Drinks Distributor Tax in Article 8, the Early Care and Education Commercial Rents Tax in Article 21, the Homelessness Gross Receipts Tax in Article 28 (including the homelessness administrative office tax under Section 2804(d) of Article 28), the Cannabis Business Tax in Article 30, or the Overpaid Executive Gross Receipts Tax in Article 33 (including the tax on administrative office business activities under Section 3303(g)) as a credit against the taxpayer’s immediately succeeding payment or payments due for tax years or periods ending on or before December 31, 2024, of the respective tax type, for up to one year. Any election to apply an overpayment to the taxpayer’s future liability shall be binding and may not later be changed by the taxpayer.
(h) The date from which the deadline for filing a claim under subsection (a) of this Section 6.15-1 is determined and the date on which a claim shall be deemed to accrue under subsection (d) of this Section shall be the later of:
(1) For tax years and tax periods ending on or before December 31, 2021, and registration years ending on or before June 30, 2023:
(A) the payment of such amount;
(B) the date the return accompanying such payment was due, without regard to any extensions under Section 6.9-4; or
(C) the date on which such amount requested on a return, amended return, or request for refund timely filed under subsection (g) of this Section 6.15-1 was denied under that subsection (g).
(2) For tax years and tax periods beginning on or after January 1, 2022, and registration years beginning on or after July 1, 2023 and ending on or before March 31, 2026, except for claims for refund subject to subsection (h)(3):
(A) the payment of such amount;
(B) the date the return accompanying such payment was due, including any extensions; or
(C) the date on which such amount requested on a return, amended return, or request for refund timely filed under subsection (g) of this Section 6.15-1 was denied under that subsection (g).
(3) For claims for refund of the Gross Receipts Tax (Article 12‑A‑1) (including the tax on administrative office business activities in 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 tax on administrative office business activities in Section 2804(d) or Section 2804.9 of Article 28), the Cannabis Business Tax (Article 30), and the Overpaid Executive Gross Receipts Tax (Article 33) (including the tax on administrative office business activities in Section 3303(g)) for tax years beginning on or after January 1, 2025, and for claims for refund of the Business Registration Fee (Article 12) for registration years beginning on or after April 1, 2026:
(A) the payment of such amount;
(B) November 30 of the calendar year in which the return for such respective tax was originally due; or
(C) the date on which such amount requested on a return, amended return, or request for refund timely filed under subsection (g) of this Section 6.15-1 was denied under that subsection (g).
SEC. 6.15-2. REFUNDS; INTEREST.
(a) Any amounts refunded prior to entry of a final judgment in a judicial proceeding shall bear interest at the rate for prejudgment interest on refunds of local taxes or fees provided by Section 3287(c) of the California Civil Code, as amended from time to time, and shall be computed from the date of payment to the date of refund.
(b) If the Controller offsets overpayments for a period or periods against another liability or liabilities currently owed to the City, or against penalties or interest on the other liability or liabilities currently owed to the City, the taxpayer will be credited with interest on the amount so applied at the rate of interest set forth above, computed from the date of payment.
(c) If a taxpayer elects to apply all or part of an overpayment of the business registration fee in Article 12, the Gross Receipts Tax in Article 12-A-1 (including the tax on administrative office business activities under Section 953.8 of Article 12-A-1), the Sugary Drinks Distributor Tax in Article 8, the Early Care and Education Commercial Rents Tax in Article 21, the Homelessness Gross Receipts Tax in Article 28 (including the homelessness administrative office tax under Section 2804(d) of Article 28), the Cannabis Business Tax in Article 30, or the Overpaid Executive Gross Receipts Tax in Article 33 (including the tax on administrative office business activities in Section 3303(g)) as a credit against the taxpayer’s immediately succeeding payment or payments due for tax years or periods ending on or before December 31, 2024, of the respective tax type, the taxpayer will not be credited with interest on the amount so applied.
SEC. 6.17-1.1. PENALTIES AND INTEREST FOR FAILURE TO PAY.
(a) Any person who fails to pay, collect, or remit to the City any tax shown on a return or required to be shown on a return shall pay a penalty of 5% of the unpaid tax, if the failure is for not more than one month after the tax was due and unpaid, plus an additional 5% for each following month or fraction of a month during which such failure continues, up to 25% in the aggregate, until the date of payment.
(b) Any person who fails to pay, collect, or remit to the City any tax shown on a return or required to be shown on a return shall also pay interest on the unpaid tax at the rate of 1% per month, or fraction of a month, from the date the taxes were due and unpaid through the date the person pays in full the delinquent taxes, penalties, interest, and fees accrued to the date of payment.
(c) No penalties or interest imposed by this Section 6.17-1.1 shall apply to the failure to make any estimated tax payments of Gross Receipts Taxes, Early Care and Education Commercial Rents Taxes, Homelessness Gross Receipts Taxes, Cannabis Business Taxes, or Overpaid Executive Gross Receipts Taxes under Section 6.9-1(c)(3).
(d) This Section 6.17-1.1 shall apply as follows:
(1) to all returns and payments for tax periods ending and taxable events occurring on or after January 1, 2021, except as provided in subsections (d)(2) and (d)(3) of this Section 6.17-1.1;
(2) to all returns and payments for registration years ending on or after July 1, 2021 with respect to the registration fee imposed under Section 855 of Article 12; and
(3) to all returns and payments for fiscal years ending on or after July 1, 2021 with respect to fees, assessments, and other charges subject to this Article 6 that are imposed on a fiscal year basis.
(e) For purposes of this Section 6.17-1.1, for registration years beginning on or after April 1, 2026, if the deadline for a person or combined group to file its Gross Receipts Tax return was extended under Section 6.9-4(b)(2) of this Article 6, the date the Business Registration Fee (Article 12) originally due on the same date as that Gross Receipts Tax return was due shall be November 30.
SEC. 6.25-1. ADVANCE DETERMINATIONS.
Subject to annual appropriations to cover its costs that exceed any fees charged, by June 30, 2025, the Tax Collector shall establish a program to provide advance determinations to taxpayers for the Business Registration Fee (Article 12), the Gross Receipts Tax (Article 12-A-1), the Early Care and Education Commercial Rents Tax (Article 21), the Homelessness Gross Receipts Tax (Article 28), the Cannabis Business Tax (Article 30), and the Overpaid Executive Gross Receipts Tax (Article 33) (including any tax on administrative office business activities imposed under any of the foregoing) regarding: (a) the Business Activity Category for a particular business activity; (b) whether a person or combined group may use an alternative apportionment formula under Sections 957, 2108, 2807, 3007, and 3306; and (c) any other issues that the Tax Collector, in the Tax Collector’s sole discretion, deems appropriate. The Tax Collector shall have the sole discretion as to whether to issue an advance determination on any of (a) through (c) above to any particular request for an advance determination, and shall have sole discretion to determine the parameters of the program, but shall hold a public hearing and comment process to solicit feedback from taxpayers prior to establishing the program. The Tax Collector may charge a fee for requests for advance determinations to cover some or all of its costs of issuing such determinations.
Section 4. Article 12 of the Business and Tax Regulations Code is hereby amended by revising Sections 852, 855, and 856, and deleting Section 852.4, to read as follows:
SEC. 852. OPERATION OF DEFINITIONS.
Except where the context otherwise requires:, (ai) the terms used in this Article 12 shall have the meanings given to them in Sections 852.1 throughand 852.24, inclusive, of this Article;, and (bii) terms not defined in this Article that are defined in Article 6 of the Business and Tax Regulations Code shall have the same meaning as given to them in that Article.
SEC. 852.4. “REGISTRATION YEAR.”
The term “Registration Year” means the fiscal year commencing July 1 of each calendar year and ending on June 30 of the subsequent calendar year.
SEC. 855. REGISTRATION CERTIFICATE – FEE.
* * * *
(b) Fee for Registration Years Beginning On or After July 1, 2021, and On or Before June 30, 2025.
(1) General Rule. Except as otherwise provided in this Section 855 and Section 856 of this Article 12, and Section 76.3 of Article 2 of this Business and Tax Regulations Code, the annual fee for obtaining a registration certificate, for the registration years beginning on or after July 1, 2021, and on or before June 30, 2025, payable in advance, shall be as follows:
San Francisco Gross Receipts for the Immediately Preceding Tax Year |
Annual Registration Fee |
$0 to $100,000 |
$52 |
$100,000.01 to $250,000 |
$86 |
$250,000.01 to $500,000 |
$144 |
$500,000.01 to $750,000 |
$288 |
$750,000.01 to $1,000,000 |
$403 |
$1,000,000.01 to $1,500,000 |
$575 |
$1,500,000.01 to $2,000,000 |
$805 |
$2,000,000.01 to $2,500,000 |
$345 |
$2,500,000.01 to $7,500,000 |
$575 |
$7,500,000.01 to $15,000,000 |
$1,725 |
$15,000,000.01 to $25,000,000 |
$5,751 |
$25,000,000.01 to $50,000,000 |
$14,379 |
$50,000,000.01 to $100,000,000 |
$25,882 |
$100,000,000.01 to $200,000,000 |
$34,510 |
$200,000,000.01 and over |
$40,261 |
(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, and Section 76.3 of Article 2 of this Business and Tax Regulations Code, for registration years beginning on or after July 1, 2021, and on or before June 30, 2025, the annual fee for obtaining a registration certificate, payable in advance, for a person or combined group that was required to report all of its gross receipts pursuant to Section 953.1 of Article 12-A-1 for the preceding tax year, shall be as follows:
San Francisco Gross Receipts for the Immediately Preceding Tax Year |
Annual Registration Fee |
$0 to $100,000 |
$43 |
$100,000.01 to $250,000 |
$72 |
$250,000.01 to $500,000 |
$115 |
$500,000.01 to $750,000 |
$230 |
$750,000.01 to $1,000,000 |
$345 |
$1,000,000.01 to $1,500,000 |
$475 |
$1,500,000.01 to $2,000,000 |
$665 |
$2,000,000.01 to $2,500,000 |
$230 |
$2,500,000.01 to $7,500,000 |
$460 |
$7,500,000.01 to $15,000,000 |
$1,294 |
$15,000,000.01 to $25,000,000 |
$4,313 |
$25,000,000.01 to $50,000,000 |
$8,627 |
$50,000,000.01 to $100,000,000 |
$17,255 |
$100,000,000.01 to $200,000,000 |
$23,006 |
$200,000,000.01 and over |
$34,510 |
(c) Fee for 2025-2026 Registration Year. Except as otherwise provided in this Section 855 and Section 856 of this Article 12, and Section 76.3 of Article 2 of this Business and Tax Regulations Code, the annual fee for obtaining a registration certificate for the 2025-2026 registration year, payable in advance, shall be as follows:
San Francisco Gross Receipts for the Immediately Preceding Tax Year |
Annual Registration Fee |
$0 to $100,000 |
$41 |
$100,000.01 to $250,000 |
$71 |
$250,000.01 to $500,000 |
$120 |
$500,000.01 to $750,000 |
$240 |
$750,000.01 to $1,000,000 |
$330 |
$1,000,000.01 to $1,500,000 |
$469 |
$1,500,000.01 to $2,000,000 |
$656 |
$2,000,000.01 to $2,500,000 |
$848 |
$2,500,000.01 to $5,000,000 |
$1,414 |
$5,000,000.01 to $7,500,000 |
$600 |
$7,500,000.01 to $15,000,000 |
$1,500 |
$15,000,000.01 to $25,000,000 |
$4,875 |
$25,000,000.01 to $50,000,000 |
$15,000 |
$50,000,000.01 to $100,000,000 |
$30,000 |
$100,000,000.01 to $200,000,000 |
$37,500 |
$200,000,000.01 and over |
$45,000 |
(d) Fee for Registration Years Beginning On or After April 1, 2026. Except as otherwise provided in this Section 855 and Section 856 of this Article 12, and Section 76.3 of Article 2 of this Business and Tax Regulations Code, the annual fee for obtaining a registration certificate for registration years beginning on or after April 1, 2026, payable in advance, shall be as follows:
San Francisco Gross Receipts for the Immediately Preceding Tax Year |
Annual Registration Fee |
$0 to $100,000 |
$55 |
$100,000.01 to $250,000 |
$95 |
$250,000.01 to $500,000 |
$160 |
$500,000.01 to $750,000 |
$320 |
$750,000.01 to $1,000,000 |
$440 |
$1,000,000.01 to $1,500,000 |
$625 |
$1,500,000.01 to $2,000,000 |
$875 |
$2,000,000.01 to $2,500,000 |
$1,130 |
$2,500,000.01 to $5,000,000 |
$1,885 |
$5,000,000.01 to $7,500,000 |
$800 |
$7,500,000.01 to $15,000,000 |
$2,000 |
$15,000,000.01 to $25,000,000 |
$6,500 |
$25,000,000.01 to $50,000,000 |
$20,000 |
$50,000,000.01 to $100,000,000 |
$40,000 |
$100,000,000.01 to $200,000,000 |
$50,000 |
$200,000,000.01 and over |
$60,000 |
(c) Except as provided in subsection (d) (Fee for Persons Subject to Administrative Office Tax), in the event that an applicant for a registration certificate, for a registration year ending after 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 estimated gross receipts under Article 12‑A‑1 (Gross Receipts Tax Ordinance) for the period covered by the registration certificate.
(ed) Fee for Persons Subject to Administrative Office Tax.
(1) Except as otherwise provided in this Section 855 and Section 856 of this Article 12, and Section 76.3 of Article 2 of this Business and Tax Regulations Code, the annual fee for obtaining a registration certificate for registration years ending on or before June 30, 2025, payable in advance, for a person or combined group that was required to pay the Administrative Office Tax under Section 953.8 of Article 12-A-1 for the preceding tax year, shall be as follows:
San Francisco Payroll Expense for the Immediately Preceding Tax Year |
Annual Registration Fee |
$0 to $2,500,000 |
$15,000 |
$2,500,000.01 to $25,000,000 |
$25,000 |
$25,000,000.01 or more |
$35,000 |
(2) Except as otherwise provided in this Section 855 and Section 856 of this Article 12, and Section 76.3 of Article 2 of this Business and Tax Regulations Code, the annual fee for obtaining a registration certificate for the 2025-2026 registration year, payable in advance, for a person or combined group that was required to pay the Administrative Office Tax under Section 953.8 of Article 12-A-1 for the preceding tax year, shall be as follows:
San Francisco Payroll Expense for the Immediately Preceding Tax Year |
Annual Registration Fee |
$0 to $500,000 |
$375 |
$500,000.01 to $1,500,000 |
$750 |
$1,500,000.01 to $2,500,000 |
$11,250 |
$2,500,000.01 to $25,000,000 |
$18,750 |
$25,000,000.01 or more |
$26,250 |
(3) Except as otherwise provided in this Section 855 and Section 856 of this Article 12, and Section 76.3 of Article 2 of this Business and Tax Regulations Code, the annual fee for obtaining a registration certificate for registration years beginning on or after April 1, 2026, payable in advance, for a person or combined group that was required to pay the Administrative Office Tax under Section 953.8 of Article 12-A-1 for the preceding tax year, shall be as follows:
San Francisco Payroll Expense for the Immediately Preceding Tax Year |
Annual Registration Fee |
$0 to $500,000 |
$500 |
$500,000.01 to $1,500,000 |
$1,000 |
$1,500,000.01 to $2,500,000 |
$15,000 |
$2,500,000.01 to $25,000,000 |
$25,000 |
$25,000,000.01 or more |
$35,000 |
(e) In the event that an applicant for a registration certificate that was required to pay the Administrative Office Tax under Section 953.8 of Article 12-A-1 for the preceding tax year 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 payroll expense under Article 12-A-1 for the period covered by the registration certificate.
(f) The amount of annual registration fee under subsections (a) and (ed)(1) of this Section 855, for all registration years ending after June 30, 2016, shall be adjusted annually in accordance with the increase in the Consumer Price Index: All Urban Consumers for the San Francisco/Oakland/San Jose Area for All Items as reported by the United States Bureau of Labor Statistics, or any successor to that index, as of December 31st of the preceding year, beginning July 1, 2016.
(g) The amount of annual registration fee under subsection (b) of this Section 855, for all registration years ending after June 30, 2022, shall be adjusted annually in accordance with the increase in the Consumer Price Index: All Urban Consumers for the San Francisco/Oakland/San Jose Area for All Items as reported by the United States Bureau of Labor Statistics, or any successor to that index, as of December 31 of the preceding year, beginning July 1, 2022.
(h) The amount of annual registration fee under subsections (d) and (e)(3) of this Section 855, for all registration years ending after March 31, 2027, shall be adjusted annually in accordance with the increase in the Consumer Price Index: All Urban Consumers for the San Francisco/Oakland/Hayward Area for All Items as reported by the United States Bureau of Labor Statistics, or any successor to that index, as of December 31 of the calendar year two years prior to the beginning of the registration year, beginning April 1, 2027, rounded to the nearest five dollars.
(ih) An organization that is exempt from income taxation by Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the California Revenue and Taxation Code or Subchapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, as amended, as qualified by Sections 502, 503, 504, and 508 of the Internal Revenue Code of 1986, as amended, shall be exempt from the registration fee under this Article 12, only so long as those exemptions continue to exist under state or federal law.
(ji) A person shall be exempt from paying the registration fee required by this Section 855 if and to the extent that, and only so long as, federal or state law prohibits the imposition of the registration fee upon such person.
(kj) The business registration fee is a tax imposed for general governmental purposes and may not be extended or increased without a vote of the people, as provided in Article XIIIC of the California Constitution. This tax may be collected in any manner legally permitted to the City.
SEC. 856. REGISTRATION CERTIFICATE – APPLICATION AND ISSUANCE.
(a) Each person engaging in business within the City shall apply to the Tax Collector for a registration certificate, using the form prescribed by the Tax Collector. The application shall be accompanied by the person’s registration fee as determined under this Article 12, except for the initial application filed for a person that is part of a combined group (as described in Section 956.3 of Article 12-A-1) where the combined group has already paid the fee on a combined basis. A combined group as described in Section 956.3 of Article 12-A-1 shall apply for a separate certificate for each person in the combined group that is engaging in business within the City, but shall calculate and remit its fee on a combined basis and shall file only one application for renewal for all entities in the combined group.
(b) A person shall have 3015 days after commencing business within the City to apply for a registration certificate. The registration fee for newly-established businesses shall be prorated as follows:
(1) For registration years commencing on or after July 1, 2015, but ending on or before June 30, 2021, the fee for obtaining a registration certificate for a newly established business shall be determined pursuant to Section 855(a) of this Article 12 using the applicant’s estimated gross receipts under Article 12-A-1 (Gross Receipts Tax Ordinance) for the tax year in which the person commences such business within the City. For persons commencing business between January 1 and March 31, the registration fee shall be 50% of the annual fee; for persons commencing business between April 1 and June 30, the registration fee shall be 25% of the annual fee; for persons commencing business between July 1 and September 30, the registration fee shall be 100% of the annual fee; and for persons commencing business between October 1 and December 31, the registration fee shall be 75% of the annual fee.
(2) For registration years commencing on or after July 1, 2021, and ending on or before June 30, 2025, the fee for obtaining a registration certificate for a newly established business shall be determined pursuant to Section 855(b) of this Article 12 using the applicant’s estimated gross receipts under Article 12-A-1 (Gross Receipts Tax Ordinance) for the tax year in which the person commences such business within the City. The registration fee shall be prorated as follows: For persons commencing business between January 1 and March 31, the registration fee shall be 50% of the annual fee; for persons commencing business between April 1 and June 30, the registration fee shall be 25% of the annual fee; for persons commencing business between July 1 and September 30, the registration fee shall be 100% of the annual fee; and for persons commencing business between October 1 and December 31, the registration fee shall be 75% of the annual fee. Where a registration certificate is issued for a period other than for a registration year, the Tax Collector shall have discretion to prorate the registration fee in accordance with this model.
(3) For the 2025-2026 registration year, the fee for obtaining a registration certificate for a newly established business shall be determined pursuant to Section 855(c) of this Article 12 using the applicant’s estimated San Francisco Gross Receipts for the tax year in which the person commences such business within the City. The registration fee for the 2025-2026 registration year shall not be prorated.
(4) For registration years commencing on or after April 1, 2026, the fee for obtaining a registration certificate for a newly established business shall be determined pursuant to Section 855(d) of this Article 12 using the applicant’s estimated San Francisco Gross Receipts for the tax year in which the person commences such business within the City. The registration fee shall be prorated as follows: For persons commencing business between January 1 and March 31, the registration fee shall be 25% of the annual fee; for persons commencing business between April 1 and June 30, the registration fee shall be 100% of the annual fee; for persons commencing business between July 1 and September 30, the registration fee shall be 75% of the annual fee; and for persons commencing business between October 1 and December 31, the registration fee shall be 50% of the annual fee.
(52) Notwithstanding any other provision of this Article 12, no person obtaining a registration certificate for a newly established business that qualifies for the minimum registration fee set forth in Section 855 of this Article shall be entitled to prorate the registration fee under this Section 856, but instead shall pay the minimum registration fee.
(c) Except as provided in Section 6.9-4(b) of Article 6 of this Business and Tax Regulations Code, aAll applications for renewal of registration certificates shall be accompanied by the full amount of the applicant’s annual registration fee for the period covered by the registration certificate. A combined group shall file only one application for renewal for all entities in the combined group.
(d) Promptly after receiving a properly completed application and registration fee (or Required Payment under Section 6.9-4(b)) from any person, the Tax Collector shall determine whether the applicant has paid all outstanding: (1) gross receipts taxes; (2) payroll expense taxes; (23) costs and/or charges assessed pursuant to Article 5.1 of the Public Works Code, as amended from time to time, for failure to abate a nuisance regarding the cleanliness of an abutting public sidewalk or right-of-way; and (34) other taxes and license fees due to the City. In addition, the Tax Collector may investigate whether the applicant has paid other amounts owing to the City as a result of fines, penalties, interest, assessments, or any other financial obligations imposed by law, regulation, or contract. If the Tax Collector determines that all liabilities have been paid, the Tax Collector shall issue a registration certificate to the applicant for each place of business maintained by the applicant.
* * * *
Section 5. Article 12-A-1 of the Business and Tax Regulations Code is hereby amended by revising Sections 952.4, 953, 953.1, 953.2, 953.3, 953.4, 953.5, 953.6, 953.7, 953.8, 953.9, 954.1, 956, 956.1, 956.2, and 960.1, adding Sections 953.20, 953.21, 953.22, 953.23, 953.24, 953.25, 953.26, 953.27, 960.2, 960.3, 960.4, and 966 and deleting Sections 950 and 953.10, to read as follows:
SEC. 950. FINDINGS AND PURPOSE.
The voters hereby find and declare as follows:
1. San Francisco is the only major city in California that levies its entire business tax on payroll expense. This exclusive payroll-based tax discourages job creation and economic growth, lowers wages, and provides an unstable revenue stream.
2. San Francisco currently charges a flat rate on its payroll expense tax base. Instituting a tiered rate structure, in which businesses are taxed based on their gross receipts, will better distribute the tax burden according to a business’s ability to pay.
3. Gross receipts is the most common business tax base among California’s largest cities.
4. Amending San Francisco’s business tax system to include a gross receipts tax will promote revenue stability by diversifying the tax base.
5. The rate schedules and the small business exemption for businesses with receipts under $1,000,000 provide particular tax relief to small businesses.
6. The legislation will gradually phase in the new gross receipts tax over a five-year period, beginning in tax year 2014, to allow businesses time to adjust to the change and to minimize the risk to the City and to taxpayers of instability in City revenues during the transition from the payroll expense tax to a gross receipts tax.
7. Also beginning in tax year 2014, the payroll expense tax will be adjusted, over the same period, in increments that are consistent with the phase in of the gross receipts tax.
8. Each year during the phase-in period, the formula dictates an increase in the gross receipts tax rate and an adjustment in the payroll expense tax rate that is expected to reduce the payroll expense tax rate to zero by or before 2018. The Controller will calculate the annual increase in the gross receipts tax rate and the adjustment in the payroll expense tax rate by applying formulas specified in this legislation.
SEC. 952.4. NAICS CODE.
“NAICS code” means the numerical classification for business activities established in the North American Industry Classification System used by federal governmental agencies to classify business establishments;. Rreferences in Sections 953.1 through 953.7 of this Article 12‑A‑1 to particular numerical NAICS codes are intended to apply the definitions and descriptions adopted in that system as of December 15, 2012the effective date of this Article. References in Sections 953.20 through 953.26, 960.1, and 960.3 of this Article to particular numerical NAICS codes are intended to apply the definitions and descriptions adopted in that system as of January 1, 2022.
SEC. 953. IMPOSITION OF GROSS RECEIPTS TAX.
(a) Except as otherwise provided under this Article 12-A-1, the City imposes and every person engaging in business within the City shall pay an annual gross receipts tax measured by the person’s gross receipts from all taxable business activities attributable to the City. A person’s liability for the gross receipts tax shall be calculated according to this Article 12‑A‑1Sections 953.1 through 953.7.
(b) The gross receipts tax is a privilege tax imposed upon persons engaging in business within the City for the privilege of engaging in a business or occupation in the City. The gross receipts tax is imposed for general governmental purposes. Proceeds from the tax shall be deposited in the City’s general fund and may be expended for any purposes of the City.
(c) The voters intend by adopting this measure to authorize application of the gross receipts tax in the broadest manner consistent with the provisions of this Article 12-A-1 and the requirements of the California Constitution, the United States Constitution, and any other applicable provision of federal and state law.
(d) The tax on Administrative Office Business Activities imposed by Section 953.8 is intended as a complementary tax to the gross receipts tax, and shall be considered a gross receipts tax for purposes of this Article 12-A-1.
SEC. 953.1. GROSS RECEIPTS TAX APPLICABLE TO RETAIL TRADE; WHOLESALE TRADE; AND CERTAIN SERVICES.
(a) The gross receipts tax rates applicable to the business activities of retail trade, wholesale trade, and certain services are:
* * * *
(2) For the business activities of retail trade and certain services:
(A) fFor tax years 2021 through and including 2024:
0.053% (e.g., $0.53 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.07% (e.g., $0.70 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.095% (e.g., $0.95 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.224% (e.g., $2.24 per $1,000) for taxable gross receipts over $25,000,000
(B) For tax year 2025:
0.079% (e.g., $0.79 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.105% (e.g., $1.05 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.142% (e.g., $1.42 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.224% (e.g., $2.24 per $1,000) for taxable gross receipts over $25,000,000
(C) For tax years beginning on or after January 1, 2026:
0.105% (e.g., $1.05 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.14% (e.g., $1.40 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.189% (e.g., $1.89 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.224% (e.g., $2.24 per $1,000) for taxable gross receipts over $25,000,000
(3) For the business activity of wholesale trade for tax years beginning on or after January 1, 2021 through and including 2024:
0.105% (e.g., $1.05 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.14% (e.g., $1.40 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.189% (e.g., $1.89 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.224% (e.g., $2.24 per $1,000) for taxable gross receipts over $25,000,000
* * * *
SEC. 953.2. GROSS RECEIPTS TAX APPLICABLE TO MANUFACTURING; TRANSPORTATION AND WAREHOUSING; INFORMATION; BIOTECHNOLOGY; CLEAN TECHNOLOGY; AND FOOD SERVICES.
(a) The gross receipts tax rates applicable to the business activities of manufacturing, transportation and warehousing, information, biotechnology, clean technology, and food services are:
* * * *
(2) For the business activities of manufacturing and food services:
(A) fFor tax years 2021 through and including 2024:
0.088% (e.g., $0.88 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.144% (e.g., $1.44 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.259% (e.g., $2.59 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.665% (e.g., $6.65 per $1,000) for taxable gross receipts over $25,000,000
(B) For tax year 2025:
0.131% (e.g., $1.31 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.215% (e.g., $2.15 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.389% (e.g., $3.89 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.665% (e.g., $6.65 per $1,000) for taxable gross receipts over $25,000,000
(C) For tax years beginning on or after January 1, 2026:
0.175% (e.g., $1.75 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.287% (e.g., $2.87 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.518% (e.g., $5.18 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.665% (e.g., $6.65 per $1,000) for taxable gross receipts over $25,000,000
(3) For the business activities of transportation and warehousing and clean technology for tax years beginning on or after January 1, 2021 through and including 2024:
0.175% (e.g., $1.75 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.287% (e.g., $2.87 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.518% (e.g., $5.18 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.665% (e.g., $6.65 per $1,000) for taxable gross receipts over $25,000,000
(4) For the business activity of biotechnology:
* * * *
(B) For tax years 2022 and, if the Controller does not certify under Section 953.10 that the 90% gross receipts threshold has been met for tax year 2023, for tax year 2023:
0.181% (e.g., $1.81 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.297% (e.g., $2.97 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.537% (e.g., $5.37 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.689% (e.g., $6.89 per $1,000) for taxable gross receipts over $25,000,000
(C) For tax year 2023 if the Controller certifies under Section 953.10 that the 90% gross receipts threshold has been met for tax year 2023, and for tax year 2024 if the Controller does not certify under Section 953.10 that the 95% gross receipts threshold has been met for tax year 2024:
0.188% (e.g., $1.88 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.308% (e.g., $3.08 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.555% (e.g., $5.55 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.713% (e.g., $7.13 per $1,000) for taxable gross receipts over $25,000,000
(D) For tax year 2024 if the Controller certifies under Section 953.10 that the 95% gross receipts threshold has been met for tax year 2024, and for tax years beginning on or after January 1, 2025:
0.194% (e.g., $1.94 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.318% (e.g., $3.18 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.574% (e.g., $5.74 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.736% (e.g., $7.36 per $1,000) for taxable gross receipts over $25,000,000
(5) For the business activity of information:
* * * *
(B) For tax years 2022 and, if the Controller does not certify under Section 953.10 that the 90% gross receipts threshold has been met for tax year 2023, for tax year 2023:
0.573% (e.g., $5.73 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.665% (e.g., $6.65 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.751% (e.g., $7.51 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.832% (e.g., $8.32 per $1,000) for taxable gross receipts over $25,000,000
(C) For tax year 2023 if the Controller certifies under Section 953.10 that the 90% gross receipts threshold has been met for tax year 2023, and for tax year 2024 if the Controller does not certify under Section 953.10 that the 95% gross receipts threshold has been met for tax year 2024:
0.579% (e.g., $5.79 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.675% (e.g., $6.75 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.77% (e.g., $7.70 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.855% (e.g., $8.55 per $1,000) for taxable gross receipts over $25,000,000
(D) For tax year 2024 if the Controller certifies under Section 953.10 that the 95% gross receipts threshold has been met for tax year 2024, and for tax years beginning on or after January 1, 2025:
0.585% (e.g., $5.85 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.685% (e.g., $6.85 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.788% (e.g., $7.88 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.879% (e.g., $8.79 per $1,000) for taxable gross receipts over $25,000,000
* * * *
SEC. 953.3. GROSS RECEIPTS TAX APPLICABLE TO ACCOMMODATIONS; UTILITIES; AND ARTS, ENTERTAINMENT AND RECREATION.
(a) The gross receipts tax rates applicable to the business activities of accommodations; utilities; and arts, entertainment and recreation are:
* * * *
(2) For the business activities of accommodations and arts, entertainment and recreation:
(A) fFor tax years 2021 through and including 2024:
0.21% (e.g., $2.10 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.228% (e.g., $2.28 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.228% (e.g., $2.28 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.56% (e.g., $5.60 per $1,000) for taxable gross receipts over $25,000,000
(B) For tax year 2025:
0.315% (e.g., $3.15 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.341% (e.g., $3.41 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.341% (e.g., $3.41 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.56% (e.g., $5.60 per $1,000) for taxable gross receipts over $25,000,000
(C) For tax years beginning on or after January 1, 2026:
0.42% (e.g., $4.20 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.455% (e.g., $4.55 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.455% (e.g., $4.55 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.56% (e.g., $5.60 per $1,000) for taxable gross receipts over $25,000,000
(3) For the business activity of utilities:
* * * *
(B) For tax years 2022 and, if the Controller does not certify under Section 953.10 that the 90% gross receipts threshold has been met for tax year 2023, for tax year 2023:
0.435% (e.g., $4.35 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.471% (e.g., $4.71 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.471% (e.g., $4.71 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.58% (e.g., $5.80 per $1,000) for taxable gross receipts over $25,000,000
(C) For tax year 2023 if the Controller certifies under Section 953.10 that the 90% gross receipts threshold has been met for tax year 2023, and for tax year 2024 if the Controller does not certify under Section 953.10 that the 95% gross receipts threshold has been met for tax year 2024:
0.45% (e.g., $4.50 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.488% (e.g., $4.88 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.488% (e.g., $4.88 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.6% (e.g., $6 per $1,000) for taxable gross receipts over $25,000,000
(D) For tax year 2024 if the Controller certifies under Section 953.10 that the 95% gross receipts threshold has been met for tax year 2024, and for tax years beginning on or after January 1, 2025:
0.465% (e.g., $4.65 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.504% (e.g., $5.04 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.504% (e.g., $5.04 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.62% (e.g., $6.20 per $1,000) for taxable gross receipts over $25,000,000
* * * *
SEC. 953.4. GROSS RECEIPTS TAX APPLICABLE TO PRIVATE EDUCATION AND HEALTH SERVICES; ADMINISTRATIVE AND SUPPORT SERVICES; AND MISCELLANEOUS BUSINESS ACTIVITIES.
(a) The gross receipts tax rates applicable to the business activities of private education and health services, administrative and support services, and all business activities not otherwise exempt and not elsewhere subjected to a gross receipts tax rate or an administrative office tax by this Article 12-A-1 are:
* * * *
(2) For the business activities of private education and health services and administrative and support services:
* * * *
(B) For tax years 2022 and, if the Controller does not certify under Section 953.10 that the 90% gross receipts threshold has been met for tax year 2023, for tax year 2023:
0.761% (e.g., $7.61 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.798% (e.g., $7.98 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.87% (e.g., $8.70 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.943% (e.g., $9.43 per $1,000) for taxable gross receipts over $25,000,000
(C) For tax year 2023 if the Controller certifies under Section 953.10 that the 90% gross receipts threshold has been met for tax year 2023, and for tax year 2024 if the Controller does not certify under Section 953.10 that the 95% gross receipts threshold has been met for tax year 2024:
0.788% (e.g., $7.88 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.825% (e.g., $8.25 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.9% (e.g., $9 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.975% (e.g., $9.75 per $1,000) for taxable gross receipts over $25,000,000
(D) For tax year 2024 if the Controller certifies under Section 953.10 that the 95% gross receipts threshold has been met for tax year 2024, and for tax years beginning on or after January 1, 2025:
0.814% (e.g., $8.14 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.853% (e.g., $8.53 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.93% (e.g., $9.30 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
1.008% (e.g., $10.08 per $1,000) for taxable gross receipts over $25,000,000
(3) For all business activities not otherwise exempt and not elsewhere subjected to a gross receipts tax rate or an administrative office tax by this Article 12-A-1:
* * * *
(B) For tax years 2022 and, if the Controller does not certify under Section 953.10 that the 90% gross receipts threshold has been met for tax year 2023, for tax year 2023:
0.788% (e.g., $7.88 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.825% (e.g., $8.25 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.9% (e.g., $9 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.975% (e.g., $9.75 per $1,000) for taxable gross receipts over $25,000,000
(C) For tax year 2023 if the Controller certifies under Section 953.10 that the 90% gross receipts threshold has been met for tax year 2023, and for tax year 2024 if the Controller does not certify under Section 953.10 that the 95% gross receipts threshold has been met for tax year 2024:
0.814% (e.g., $8.14 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.853% (e.g., $8.53 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.93% (e.g., $9.30 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
1.008% (e.g., $10.08 per $1,000) for taxable gross receipts over $25,000,000
(D) For tax year 2024 if the Controller certifies under Section 953.10 that the 95% gross receipts threshold has been met for tax year 2024, and for tax years beginning on or after January 1, 2025:
0.84% (e.g., $8.40 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.88% (e.g., $8.80 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.96% (e.g., $9.60 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
1.04% (e.g., $10.40 per $1,000) for taxable gross receipts over $25,000,000
* * * *
SEC. 953.5. GROSS RECEIPTS TAX APPLICABLE TO CONSTRUCTION.
(a) The gross receipts tax rates applicable to the business activity of construction are:
* * * *
(2) For tax years beginning on or after January 1, 2021 through and including 2024:
0.42% (e.g., $4.20 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.49% (e.g., $4.90 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.56% (e.g., $5.60 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.63% (e.g., $6.30 per $1,000) for taxable gross receipts over $25,000,000
* * * *
SEC. 953.6. GROSS RECEIPTS TAX APPLICABLE TO FINANCIAL SERVICES; INSURANCE; AND PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES.
(a) The gross receipts tax rates applicable to the business activities of financial services; insurance; and professional, scientific and technical services are:
* * * *
(2) For the business activity of insurance:
* * * *
(B) For tax years 2022 and, if the Controller does not certify under Section 953.10 that the 90% gross receipts threshold has been met for tax year 2023, for tax year 2023:
0.58% (e.g., $5.80 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.667% (e.g., $6.67 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.74% (e.g., $7.40 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.812% (e.g., $8.12 per $1,000) for taxable gross receipts over $25,000,000
(C) For tax year 2023 if the Controller certifies under Section 953.10 that the 90% gross receipts threshold has been met for tax year 2023, and for tax year 2024 if the Controller does not certify under Section 953.10 that the 95% gross receipts threshold has been met for tax year 2024:
0.6% (e.g., $6 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.69% (e.g., $6.90 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.765% (e.g., $7.65 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.84% (e.g., $8.40 per $1,000) for taxable gross receipts over $25,000,000
(D) For tax year 2024 if the Controller certifies under Section 953.10 that the 95% gross receipts threshold has been met for tax year 2024, and for tax years beginning on or after January 1, 2025:
0.62% (e.g., $6.20 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.713% (e.g., $7.13 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.791% (e.g., $7.91 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.868% (e.g., $8.68 per $1,000) for taxable gross receipts over $25,000,000
(3) For the business activities of financial services and professional, scientific and technical services:
* * * *
(B) For tax years 2022 and, if the Controller does not certify under Section 953.10 that the 90% gross receipts threshold has been met for tax year 2023, for tax year 2023:
0.6% (e.g., $6 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.69% (e.g., $6.90 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.765% (e.g., $7.65 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.84% (e.g., $8.40 per $1,000) for taxable gross receipts over $25,000,000
(C) For tax year 2023 if the Controller certifies under Section 953.10 that the 90% gross receipts threshold has been met for tax year 2023, and for tax year 2024 if the Controller does not certify under Section 953.10 that the 95% gross receipts threshold has been met for tax year 2024:
0.62% (e.g., $6.20 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.713% (e.g., $7.13 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.791% (e.g., $7.91 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.868% (e.g., $8.68 per $1,000) for taxable gross receipts over $25,000,000
(D) For tax year 2024 if the Controller certifies under Section 953.10 that the 95% gross receipts threshold has been met for tax year 2024, and for tax years beginning on or after January 1, 2025:
0.64% (e.g., $6.40 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.736% (e.g., $7.36 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.816% (e.g., $8.16 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.896% (e.g., $8.96 per $1,000) for taxable gross receipts over $25,000,000
* * * *
SEC. 953.7. GROSS RECEIPTS TAX APPLICABLE TO REAL ESTATE AND RENTAL AND LEASING SERVICES.
(a) The gross receipts tax rates applicable to the business activities of real estate and rental and leasing services are:
* * * *
(3) For tax years 2022 and, if the Controller does not certify under Section 953.10 that the 90% gross receipts threshold has been met for tax year 2023, for tax year 2023:
0.413% (e.g., $4.13 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.413% (e.g., $4.13 per $1,000) for taxable gross receipts between $1,000,000.01 and $5,000,000
0.435% (e.g., $4.35 per $1,000) for taxable gross receipts between $5,000,000.01 and $25,000,000
0.435% (e.g., $4.35 per $1,000) for taxable gross receipts over $25,000,000
(4) For tax year 2023 if the Controller certifies under Section 953.10 that the 90% gross receipts threshold has been met for tax year 2023, and for tax year 2024 if the Controller does not certify under Section 953.10 that the 95% gross receipts threshold has been met for tax year 2024:
0.428% (e.g., $4.28 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.428% (e.g., $4.28 per $1,000) for taxable gross receipts between $1,000,000.01 and $5,000,000
0.45% (e.g., $4.50 per $1,000) for taxable gross receipts between $5,000,000.01 and $25,000,000
0.45% (e.g., $4.50 per $1,000) for taxable gross receipts over $25,000,000
(5) For tax year 2024 if the Controller certifies under Section 953.10 that the 95% gross receipts threshold has been met for tax year 2024, and for tax years beginning on or after January 1, 2025:
0.442% (e.g., $4.42 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.442% (e.g., $4.42 per $1,000) for taxable gross receipts between $1,000,000.01 and $5,000,000
0.465% (e.g., $4.65 per $1,000) for taxable gross receipts between $5,000,000.01 and $25,000,000
0.465% (e.g., $4.65 per $1,000) for taxable gross receipts over $25,000,000
* * * *
SEC. 953.8. TAX ON ADMINISTRATIVE OFFICE BUSINESS ACTIVITIES.
(a) Except as provided in this Section 953.8, notwithstanding any other provision of this Article 12-A-1 and in lieu of the other taxes provided by this Article for any person or combined group, every person engaging in business within the City as an administrative office, as defined below, shall pay an annual administrative office tax measured by its total payroll expense that is attributable to the City. If a person is a member of a combined group, then its tax shall be measured by the total payroll expense of the combined group attributable to the City. Such combined group shall pay only the administrative office tax. The administrative office tax rate is:
(1) For tax years beginning on or after January 1, 2014 and ending on or before December 31, 2021: 1.4%.
(2) For tax years 2022 and, if the Controller does not certify under Section 953.10 that the 90% gross receipts threshold has been met for tax year 2023, for tax year 2023: 1.47%.
(3) For tax year 2023 if the Controller certifies under Section 953.10 that the 90% gross receipts threshold has been met for tax year 2023, and for tax year 2024 if the Controller does not certify under Section 953.10 that the 95% gross receipts threshold has been met for tax year 2024: 1.54%.
(4) For tax year 2024 if the Controller certifies under Section 953.10 that the 95% gross receipts threshold has been met for tax year 2024, and for tax years beginning on or after January 1, 2025 and 2026: 1.471.61%.
(5) For tax year 2027: 1.59%.
(6) For tax years beginning on or after January 1, 2028: 1.68%.
(b) Administrative Office Business Activity.
(1) “Engaging in business within the City as an administrative office” means that:
(A1) a person is engaging in business within the City during the tax year and over 50% percent of the total combined payroll expense within the City of that person and its related entities for the preceding tax year was associated with providing administrative or management services exclusively to that person or related entities;
(B2) the total combined number of employees of that person and its related entities within the United States as of the last day of the preceding tax year exceeded 1,000; and
(C3) the total combined gross receipts of that person and its related entities reported on United States federal income tax return(s) for the preceding tax year exceeded $1,000,000,000.
(2) For tax years beginning on or after January 1, 2025:
(A) For a person or combined group’s classification as engaging in business within the City as an administrative office to change from one tax year to the next, the person or combined group must fail to satisfy at least one of the conditions in subsections (A), (B), and (C) of subsection (b)(1) for the current tax year and the immediately preceding two tax years.
(B) For a person or combined group’s classification as not engaging in business within the City as an administrative office to change from one tax year to the next, the person or combined group must satisfy all three of the conditions in subsections (A), (B), and (C) of subsection (b)(1) for the current tax year and the immediately preceding two tax years.
* * * *
SEC. 953.9. PERSONS OR COMBINED GROUPS ENGAGED IN MULTIPLE BUSINESS ACTIVITIES.
If a person, or a combined group as described in Section 956.3, engages in business activities described in more than one of Sections 953.1 through 953.7, inclusive, or engages in business activities listed in more than one of subsections 953.1(a)(2), 953.1(a)(3), 953.2(a)(2), 953.2(a)(3), 953.2(a)(4), 953.2(a)(5), 953.3(a)(2), 953.3(a)(3), 953.4(a)(2), 953.4(a)(3), 953.6(a)(2), and 953.6(a)(3), the rate or rates of gross receipts tax to be applied to that person or combined group, and the method for determining gross receipts in the City, shall be determined as follows:
* * * *
(c) This Section 953.9 shall not apply to tax years beginning on or after January 1, 2025.
SEC. 953.10. CONTROLLER TO PUBLISH AND CERTIFY TAXABLE GROSS RECEIPTS AMOUNTS.
(a) On or before October 3, 2022, for purposes of determining the applicable tax rates for tax year 2023, the Controller shall publish the total amount of taxable gross receipts for tax year 2021 reported by taxpayers as of June 30, 2022, and if that amount is equal to or greater than 90% of taxable gross receipts for tax year 2019 reported by taxpayers as of June 30, 2020, the Controller shall certify that the 90% gross receipts threshold has been met for tax year 2023.
(b) On or before October 2, 2023, for purposes of determining the applicable tax rates for tax year 2024, the Controller shall publish the total amount of taxable gross receipts for tax year 2022 reported by taxpayers as of June 30, 2023, and if that amount is equal to or greater than 95% of taxable gross receipts for tax year 2019 reported by taxpayers as of June 30, 2020, the Controller shall certify that the 95% gross receipts threshold has been met for tax year 2024.
(c) For purposes of this Section 953.10, “taxable gross receipts” means a person or combined group’s gross receipts, not excluded under Section 954, attributable to the City.
SEC. 953.20. GROSS RECEIPTS TAX APPLICABLE TO CATEGORY 1 BUSINESS ACTIVITIES.
(a) The gross receipts tax rates applicable to Category 1 Business Activities are:
(1) For tax years 2025 and 2026:
0.1% for taxable gross receipts between $0 and $1,000,000
0.13% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.18% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.336% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.336% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.336% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.336% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.504% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.672% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.84% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
1.008% for taxable gross receipts over $1,000,000,000
(2) For tax year 2027:
0.104% for taxable gross receipts between $0 and $1,000,000
0.135% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.187% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.356% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.356% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.356% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.356% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.534% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.712% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.89% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
1.068% for taxable gross receipts over $1,000,000,000
(3) For tax years beginning on or after January 1, 2028:
0.107% for taxable gross receipts between $0 and $1,000,000
0.139% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.193% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.372% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.372% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.372% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.372% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.557% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.743% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.929% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
1.115% for taxable gross receipts over $1,000,000,000
(b) “Category 1 Business Activities” means one or more of the business activities described in NAICS codes 42 (Wholesale Trade), 44 and 45 (Retail Trade), 532 (Rental and Leasing Services), 71 (Arts, Entertainment, and Recreation), 722 (Food Services and Drinking Places), 811 (Repair and Maintenance), 812 (Personal and Laundry Services) but not including 812930 (Parking Lots and Garages), and 813 (Religious, Grantmaking, Civic, Professional, and Similar Organizations).
(c) The amount of taxable gross receipts from Category 1 Business Activities subject to the gross receipts tax shall be three‑quarters of the amount determined under Section 956.1 plus one‑quarter of the amount determined under Section 956.2.
SEC. 953.21. GROSS RECEIPTS TAX APPLICABLE TO CATEGORY 2 BUSINESS ACTIVITIES.
(a) The gross receipts tax rates applicable to Category 2 Business Activities are:
(1) For tax years 2025 and 2026:
0.185% for taxable gross receipts between $0 and $1,000,000
0.201% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.253% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.331% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.582% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.582% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.582% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.582% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.582% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.582% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
0.582% for taxable gross receipts over $1,000,000,000
(2) For tax year 2027:
0.192% for taxable gross receipts between $0 and $1,000,000
0.209% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.264% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.351% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.617% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.617% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.617% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.617% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.617% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.617% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
0.617% for taxable gross receipts over $1,000,000,000
(3) For tax years beginning on or after January 1, 2028:
0.198% for taxable gross receipts between $0 and $1,000,000
0.215% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.271% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.366% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.644% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.644% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.644% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.644% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.644% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.644% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
0.644% for taxable gross receipts over $1,000,000,000
(b) “Category 2 Business Activities” means the business activities described in NAICS code 721 (Accommodation).
(c) The amount of taxable gross receipts from Category 2 Business Activities subject to the gross receipts tax shall be the total amount of gross receipts derived from or related to real properties located within the City.
SEC. 953.22. GROSS RECEIPTS TAX APPLICABLE TO CATEGORY 3 BUSINESS ACTIVITIES.
(a) The gross receipts tax rates applicable to Category 3 Business Activities are:
(1) For tax years 2025 and 2026:
0.413% for taxable gross receipts between $0 and $1,000,000
0.413% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.435% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.435% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.435% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.435% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.435% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.435% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.435% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.435% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
0.435% for taxable gross receipts over $1,000,000,000
(2) For tax year 2027:
0.43% for taxable gross receipts between $0 and $1,000,000
0.43% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.452% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.452% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.465% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.465% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.465% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.465% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.465% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.465% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
0.465% for taxable gross receipts over $1,000,000,000
(3) For tax years beginning on or after January 1, 2028:
0.442% for taxable gross receipts between $0 and $1,000,000
0.442% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.466% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.466% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.489% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.489% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.489% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.489% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.489% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.489% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
0.489% for taxable gross receipts over $1,000,000,000
(b) “Category 3 Business Activities” means one or more of the business activities described in NAICS codes 531 (Real Estate), 5612 (Facilities Support Services), 5617 (Services to Buildings and Dwellings), and 812930 (Parking Lots and Garages).
(c) The amount of taxable gross receipts from Category 3 Business Activities subject to the gross receipts tax shall be the total amount of gross receipts derived from or related to real properties located within the City.
SEC. 953.23. GROSS RECEIPTS TAX APPLICABLE TO CATEGORY 4 BUSINESS ACTIVITIES.
(a) The gross receipts tax rates applicable to Category 4 Business Activities are:
(1) For tax years 2025 and 2026:
0.25% for taxable gross receipts between $0 and $1,000,000
0.25% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.3% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.504% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.84% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.84% for taxable gross receipts between $75,000,000.01 and $100,000,000
1.176% for taxable gross receipts between $100,000,000.01 and $150,000,000
1.176% for taxable gross receipts between $150,000,000.01 and $250,000,000
1.344% for taxable gross receipts between $250,000,000.01 and $500,000,000
1.344% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
1.512% for taxable gross receipts over $1,000,000,000
(2) For tax year 2027:
0.26% for taxable gross receipts between $0 and $1,000,000
0.26% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.312% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.534% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.89% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.89% for taxable gross receipts between $75,000,000.01 and $100,000,000
1.246% for taxable gross receipts between $100,000,000.01 and $150,000,000
1.246% for taxable gross receipts between $150,000,000.01 and $250,000,000
1.424% for taxable gross receipts between $250,000,000.01 and $500,000,000
1.424% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
1.602% for taxable gross receipts over $1,000,000,000
(3) For tax years beginning on or after January 1, 2028:
0.268% for taxable gross receipts between $0 and $1,000,000
0.268% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.321% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.557% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.929% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.929% for taxable gross receipts between $75,000,000.01 and $100,000,000
1.301% for taxable gross receipts between $100,000,000.01 and $150,000,000
1.301% for taxable gross receipts between $150,000,000.01 and $250,000,000
1.486% for taxable gross receipts between $250,000,000.01 and $500,000,000
1.486% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
1.672% for taxable gross receipts over $1,000,000,000
(b) “Category 4 Business Activities” means one or more of the business activities described in NAICS codes 11 (Agriculture, Forestry, Fishing and Hunting), 21 (Mining, Quarrying, and Oil and Gas Extraction), 22 (Utilities), 31 through 33 (Manufacturing), 48 and 49 (Transportation and Warehousing), 524 (Insurance Carriers and Related Activities), 541714 (Research and Development in Biotechnology (except Nanobiotechnology)), 5611 (Office Administrative Services), 5613 (Employment Services), 5614 (Business Support Services), 5615 (Travel Arrangement and Reservation Services), 5616 (Investigation and Security Services), 5619 (Other Support Services), and 92 (Public Administration).
(c) The amount of taxable gross receipts from Category 4 Business Activities subject to the gross receipts tax shall be three‑quarters of the amount determined under Section 956.1 plus one‑quarter of the amount determined under Section 956.2.
SEC. 953.24. GROSS RECEIPTS TAX APPLICABLE TO CATEGORY 5 BUSINESS ACTIVITIES.
(a) The gross receipts tax rates applicable to Category 5 Business Activities are:
(1) For tax years 2025 and 2026:
1% for taxable gross receipts between $0 and $1,000,000
1% for taxable gross receipts between $1,000,000.01 and $2,500,000
1.5% for taxable gross receipts between $2,500,000.01 and $25,000,000
1.176% for taxable gross receipts between $25,000,000.01 and $50,000,000
1.344% for taxable gross receipts between $50,000,000.01 and $75,000,000
1.344% for taxable gross receipts between $75,000,000.01 and $100,000,000
1.344% for taxable gross receipts between $100,000,000.01 and $150,000,000
1.512% for taxable gross receipts between $150,000,000.01 and $250,000,000
1.68% for taxable gross receipts between $250,000,000.01 and $500,000,000
1.68% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
1.68% for taxable gross receipts over $1,000,000,000
(2) For tax year 2027:
1.04% for taxable gross receipts between $0 and $1,000,000
1.04% for taxable gross receipts between $1,000,000.01 and $2,500,000
1.56% for taxable gross receipts between $2,500,000.01 and $25,000,000
1.246% for taxable gross receipts between $25,000,000.01 and $50,000,000
1.424% for taxable gross receipts between $50,000,000.01 and $75,000,000
1.424% for taxable gross receipts between $75,000,000.01 and $100,000,000
1.424% for taxable gross receipts between $100,000,000.01 and $150,000,000
1.602% for taxable gross receipts between $150,000,000.01 and $250,000,000
1.78% for taxable gross receipts between $250,000,000.01 and $500,000,000
1.78% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
1.78% for taxable gross receipts over $1,000,000,000
(3) For tax years beginning on or after January 1, 2028:
1.071% for taxable gross receipts between $0 and $1,000,000
1.071% for taxable gross receipts between $1,000,000.01 and $2,500,000
1.607% for taxable gross receipts between $2,500,000.01 and $25,000,000
1.301% for taxable gross receipts between $25,000,000.01 and $50,000,000
1.486% for taxable gross receipts between $50,000,000.01 and $75,000,000
1.486% for taxable gross receipts between $75,000,000.01 and $100,000,000
1.486% for taxable gross receipts between $100,000,000.01 and $150,000,000
1.672% for taxable gross receipts between $150,000,000.01 and $250,000,000
1.858% for taxable gross receipts between $250,000,000.01 and $500,000,000
1.858% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
1.858% for taxable gross receipts over $1,000,000,000
(b) “Category 5 Business Activities” means one or more of the business activities described in NAICS codes 51 (Information), 5222 (Nondepository Credit Intermediation), 5223 (Activities Related to Credit Intermediation)), 533 (Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)), 54 (Professional, Scientific, and Technical Services) but not including 541714 (Research and Development in Biotechnology (except Nanobiotechnology)), 55 (Management of Companies and Enterprises), 562 (Waste Management and Remediation Services), 61 (Educational Services), 62 (Health Care and Social Assistance), and all business activities not otherwise exempt and not elsewhere subjected to a gross receipts tax rate by Sections 953.20 through 953.26 or an administrative office tax under Section 953.8.
(c) The amount of taxable gross receipts from Category 5 Business Activities subject to the gross receipts tax shall be three‑quarters of the amount determined under Section 956.1 plus one‑quarter of the amount determined under Section 956.2.
SEC. 953.25. GROSS RECEIPTS TAX APPLICABLE TO CATEGORY 6 BUSINESS ACTIVITIES.
(a) The gross receipts tax rates applicable to Category 6 Business Activities are:
(1) For tax years 2025 and 2026:
1.5% for taxable gross receipts between $0 and $1,000,000
1.5% for taxable gross receipts between $1,000,000.01 and $2,500,000
3% for taxable gross receipts between $2,500,000.01 and $25,000,000
2.352% for taxable gross receipts between $25,000,000.01 and $50,000,000
3.024% for taxable gross receipts between $50,000,000.01 and $75,000,000
3.024% for taxable gross receipts between $75,000,000.01 and $100,000,000
3.36% for taxable gross receipts between $100,000,000.01 and $150,000,000
3.36% for taxable gross receipts between $150,000,000.01 and $250,000,000
3.36% for taxable gross receipts between $250,000,000.01 and $500,000,000
3.36% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
3.36% for taxable gross receipts over $1,000,000,000
(2) For tax year 2027:
1.56% for taxable gross receipts between $0 and $1,000,000
1.56% for taxable gross receipts between $1,000,000.01 and $2,500,000
3.12% for taxable gross receipts between $2,500,000.01 and $25,000,000
2.492% for taxable gross receipts between $25,000,000.01 and $50,000,000
3.204% for taxable gross receipts between $50,000,000.01 and $75,000,000
3.204% for taxable gross receipts between $75,000,000.01 and $100,000,000
3.56% for taxable gross receipts between $100,000,000.01 and $150,000,000
3.56% for taxable gross receipts between $150,000,000.01 and $250,000,000
3.56% for taxable gross receipts between $250,000,000.01 and $500,000,000
3.56% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
3.56% for taxable gross receipts over $1,000,000,000
(3) For tax years beginning on or after January 1, 2028:
1.607% for taxable gross receipts between $0 and $1,000,000
1.607% for taxable gross receipts between $1,000,000.01 and $2,500,000
3.214% for taxable gross receipts between $2,500,000.01 and $25,000,000
2.601% for taxable gross receipts between $25,000,000.01 and $50,000,000
3.344% for taxable gross receipts between $50,000,000.01 and $75,000,000
3.344% for taxable gross receipts between $75,000,000.01 and $100,000,000
3.716% for taxable gross receipts between $100,000,000.01 and $150,000,000
3.716% for taxable gross receipts between $150,000,000.01 and $250,000,000
3.716% for taxable gross receipts between $250,000,000.01 and $500,000,000
3.716% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
3.716% for taxable gross receipts over $1,000,000,000
(b) “Category 6 Business Activities” means one or more of the business activities described in NAICS codes 521 (Monetary Authorities-Central Bank), 5221 (Depository Credit Intermediation), 523 (Securities, Commodity Contracts, and Other Financial Investments and Related Activities), and 525 (Funds, Trusts, and other Financial Vehicles).
(c) The amount of taxable gross receipts from Category 6 Business Activities subject to the gross receipts tax shall be three‑quarters of the amount determined under Section 956.1 plus one‑quarter of the amount determined under Section 956.2.
SEC. 953.26. GROSS RECEIPTS TAX APPLICABLE TO CATEGORY 7 BUSINESS ACTIVITIES.
(a) The gross receipts tax rates applicable to Category 7 Business Activities are:
(1) For tax years 2025 and 2026:
0.5% for taxable gross receipts between $0 and $1,000,000
0.5% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.75% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.672% for taxable gross receipts between $25,000,000.01 and $50,000,000
1.008% for taxable gross receipts between $50,000,000.01 and $75,000,000
1.008% for taxable gross receipts between $75,000,000.01 and $100,000,000
1.344% for taxable gross receipts between $100,000,000.01 and $150,000,000
1.344% for taxable gross receipts between $150,000,000.01 and $250,000,000
1.512% for taxable gross receipts between $250,000,000.01 and $500,000,000
1.512% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
1.68% for taxable gross receipts over $1,000,000,000
(2) For tax year 2027:
0.52% for taxable gross receipts between $0 and $1,000,000
0.52% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.78% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.712% for taxable gross receipts between $25,000,000.01 and $50,000,000
1.068% for taxable gross receipts between $50,000,000.01 and $75,000,000
1.068% for taxable gross receipts between $75,000,000.01 and $100,000,000
1.424% for taxable gross receipts between $100,000,000.01 and $150,000,000
1.424% for taxable gross receipts between $150,000,000.01 and $250,000,000
1.602% for taxable gross receipts between $250,000,000.01 and $500,000,000
1.602% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
1.78% for taxable gross receipts over $1,000,000,000
(3) For tax years beginning on or after January 1, 2028:
0.536% for taxable gross receipts between $0 and $1,000,000
0.536% for taxable gross receipts between $1,000,000.01 and $2,500,000
0.803% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.743% for taxable gross receipts between $25,000,000.01 and $50,000,000
1.115% for taxable gross receipts between $50,000,000.01 and $75,000,000
1.115% for taxable gross receipts between $75,000,000.01 and $100,000,000
1.486% for taxable gross receipts between $100,000,000.01 and $150,000,000
1.486% for taxable gross receipts between $150,000,000.01 and $250,000,000
1.672% for taxable gross receipts between $250,000,000.01 and $500,000,000
1.672% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
1.858% for taxable gross receipts over $1,000,000,000
(b) “Category 7 Business Activities” means the business activities described in NAICS code 23 (Construction).
(c) Except as otherwise provided in subsection (d), the amount of taxable gross receipts from Category 7 Business Activities subject to the gross receipts tax shall be the total amount of gross receipts derived from or related to real properties located within the City.
(d) The amount of taxable gross receipts determined under subsection (c) shall be reduced by any amounts that were included in a person or combined group’s gross receipts under subsection (c) and that the person or combined group paid to a subcontractor for work related to the real properties located with the City during the tax year. There shall be no deduction for any other costs, including without limitation costs for materials, fees, equipment, or other services. To claim such a deduction, a person must maintain an itemized schedule of payments to subcontractors.
SEC. 953.27. PERSONS OR COMBINED GROUPS ENGAGED IN MULTIPLE BUSINESS ACTIVITY CATEGORIES.
For tax years beginning on or after January 1, 2025, if a person, or a combined group as described in Section 956.3, derives gross receipts from more than one of Business Activity Categories 1 through 7, inclusive:
(a) If the person or combined group has $10,000 or less in gross receipts from any one of Business Activity Categories 1 through 7, inclusive, before allocating or apportioning gross receipts under Section 956, such person or combined group may combine those gross receipts for all purposes related to computing the gross receipts tax with the gross receipts from whichever of Business Activity Categories 1 through 7, inclusive, generated the most gross receipts for the person or combined group, before allocating or apportioning gross receipts under Section 956. If there is no Business Activity Category that generated the most gross receipts for the person or combined group because the person or combined group generated the same amount of gross receipts from one or more Business Activity Categories, then such person or combined group may combine the gross receipts in this subsection (a) for all purposes related to computing the gross receipts tax with the gross receipts from whichever Business Activity Category has the highest rates among the Business Activity Categories that generated the same amount of gross receipts.
(b) If the person or combined group continues to derive gross receipts from more than one of Business Activity Categories 1 through 7, inclusive, after applying subsection (a) of this Section 953.27, then such person or combined group shall separately compute the gross receipts tax for each Business Activity Category as provided in the Section applicable to that particular Business Activity Category as follows:
(1) The small business exemption provided in Section 954.1 shall apply only if the sum of receipts within the City from all Business Activity Categories does not exceed the applicable threshold in Section 954.1 in total; and
(2) The gross receipts tax liability for the person or combined group shall be the sum of the liabilities for each Business Activity Category.
SEC. 954.1. SMALL BUSINESS EXEMPTION.
(a) Notwithstanding any other provision of this Article 12-A-1, a “small business enterprise,” as hereinafter defined for purposes of this Article, shall be exempt from payment of the gross receipts tax, nevertheless, a small business enterprise shall pay the annual registration fee pursuant to Section 855 of Article 12.
(b) For purposes of this Article 12-A-1, the term “small business enterprise” shall mean:
(1) For tax years beginning on or after January 1, 2014 and ending on or before December 31, 2020, any person or combined group, except for a lessor of residential real estate, whose gross receipts within the City did not exceed $1,000,000, adjusted annually in accordance with the increase in the Consumer Price Index: All Urban Consumers for the San Francisco/Oakland/San Jose Area for All Items as reported by the United States Bureau of Labor Statistics, or any successor to that index, as of December 31 of the preceding year, beginning with December 31, 2014.
(2) For tax years beginning on or after January 1, 2021 and ending on or before December 31, 2024, any person or combined group, except for a lessor of residential real estate, whose gross receipts within the City did not exceed $2,000,000, adjusted annually in accordance with the increase in the Consumer Price Index: All Urban Consumers for the San Francisco/Oakland/San Jose Area for All Items as reported by the United States Bureau of Labor Statistics, or any successor to that index, as of December 31 of the preceding year, beginning with December 31, 2021.
(3) For tax years beginning on or after January 1, 2025, any person or combined group, except for a lessor of residential real estate, whose gross receipts within the City did not exceed $5,000,000, adjusted annually in accordance with the increase in the Consumer Price Index: All Urban Consumers for the San Francisco/Oakland/Hayward Area for All Items as reported by the United States Bureau of Labor Statistics, or any successor to that index, as of December 31 of the calendar year two years prior to the tax year, beginning with tax year 2026, and rounded to the nearest $10,000.
* * * *
SEC. 956. ALLOCATION AND APPORTIONMENT FOR ALL PERSONS DERIVING GROSS RECEIPTS FROM BUSINESS ACTIVITIES BOTH WITHIN AND OUTSIDE THE CITY.
All persons deriving gross receipts from business activities both within and outside the City shall allocate and/or apportion their gross receipts to the City, as follows:
(a) for taxable years ending on or before December 31, 2024, using the rules set forth in Sections 956.1 and 956.2, in the manner directed in Sections 953.1 through 953.7, inclusive, and in Section 953.9 of this Article 12-A-1; and
(b) for taxable years beginning on or after January 1, 2025, in the manner directed in Sections 953.20 through 953.26, inclusive, and using the rules set forth in Sections 956.1 and 956.2, as applicable.
SEC. 956.1. ALLOCATION OF RECEIPTS FROM REAL, PERSONAL, TANGIBLE AND INTANGIBLE PROPERTY.
(a) For all persons required to determine an amount of gross receipts pursuant to this Section 956.1, that amount shall be all non-exempt gross receipts within the City as determined hereunder.
(b) Gross receipts from the sale, lease, rental, or licensing of real property are in the City if the real property is located in the City.
(c) Gross receipts from sales of tangible personal property are in the City if the property is delivered or shipped to a purchaser within the City regardless of the f.o.b. point or other conditions of the sale.
(d) Gross receipts from the rental, lease, or licensing of tangible personal property are in the City if the property is located in the City.
(e) Gross receipts from services are in the City to the extent the purchaser of the services received the benefit of the services in the City. The Tax Collector shall promulgate regulations interpreting whether the purchaser of services received the benefit of services in the City for purposes of this Section 956.1(e). In promulgating such regulations, the Tax Collector shall comply with the requirements of Section 6.16-1 of Article 6 of this Business and Tax Regulations Code, including but not limited to the requirement that the Tax Collector hold a public hearing and allow public comment prior to the adoption of the regulations. Further, in promulgating such regulations, the Tax Collector shall review and consider sourcing rules and safe harbor provisions adopted by the State of California and other jurisdictions.
(f) Gross receipts from intangible property are in the City to the extent the property is used in the City. In the case of financial instruments, sales are in the City if the customer is located in the City. The Tax Collector shall promulgate regulations interpreting whether intangible property is used in the City for purposes of this Section 956.1(f) and whether, in the case of financial instruments, the customer is located in the City. In promulgating such regulations, the Tax Collector shall comply with the requirements of Section 6.16-1 of Article 6 of this Business and Tax Regulations Code, including but not limited to the requirement that the Tax Collector hold a public hearing and allow public comment prior to the adoption of the regulations. Further, in promulgating such regulations, the Tax Collector shall review and consider sourcing rules and safe harbor provisions adopted by the State of California and other jurisdictions.
SEC. 956.2. APPORTIONMENT OF RECEIPTS BASED ON PAYROLL.
(a) For all persons required to determine an amount of gross receipts pursuant to this Section 956.2, that amount shall be all non-exempt combined gross receipts of the person multiplied by a fraction, the numerator of which is payroll in the City and the denominator of which is combined payroll.
(b) Combined gross receipts are the total worldwide gross receipts of the person and all related entities to the person, unless the election provided for in California Revenue and Taxation Code Section 25110 is in effect for the person, in which case combined gross receipts shall be computed consistently with the water’s edge election, as set forth therein.
(c) Combined payroll is the total worldwide compensation paid by the person and all related entities to the person, unless the election provided for in California Revenue and Taxation Code Section 25110 is in effect for the person, in which case combined payroll shall be computed consistently with the water’s edge election, as set forth therein. A person who has no combined payroll in a tax year shall have no gross receipts under this Section for that tax year.
(d) Payroll in the City is the total amount paid for compensation in the City by the person and by all related entities to the person.
(e) Compensation paid in the City shall be determined as follows:set forth in Section 953.8(f)(4).
(1) Where compensation is paid by reason of work performed or services rendered by an individual wholly within the City, all of the compensation for such individual shall be attributable to the City.
(2) Where compensation is paid by reason of work performed or services rendered by an individual partly within and partly without the City, the portion of such compensation attributable to the City shall be determined as follows:
(A) Except as otherwise provided in this Section 956.2(e), the portion of such compensation attributable to the City shall be the portion of such compensation which the total number of working hours employed within the City bears to the total number of working hours within and without the City.
(B) If the amount of such compensation depends on the volume of business transacted by such individual, then the portion of such compensation attributable to the City shall be the portion of such compensation which the volume of business transacted by such individual in the City bears to the volume of business transacted by such individual within and without the City.
(C) If it is impracticable, unreasonable, or improper to apportion such compensation as aforesaid either because of the particular nature of the services of such individual, or on account of the unusual basis of compensation, or for any other reason, then the amount of such compensation reasonably attributable to work performed or services rendered in the City shall be determined on the basis of all relevant facts and circumstances of the particular case, in accordance with any rulings or regulations issued or promulgated by the Tax Collector for the purpose.
(D) If the Tax Collector determines that the percentage of compensation attributable to the City, for any one or more persons, is a relatively stable percentage, the Tax Collector may establish that percentage as a prima facie evidence of compensation attributable to the City; provided, that the Tax Collector shall condition the establishment of such fixed percentage upon the obligation of the taxpayer to report immediately to the Tax Collector any significant change in the taxpayer’s mode of business which may impact the portion of the person’s compensation which is attributable to the City; and, provided further, that the Tax Collector may rescind any such fixed percentage at any time by providing written notice to the taxpayer of such rescission.
(f) “Compensation” means wages, salaries, commissions and any other form of remuneration paid to employees for services. In the case of any person who has no employees, compensation shall also include all taxable income for federal income tax purposes of the owners or proprietors of such person who are individuals. Those owners or proprietors shall be treated as individuals to whom compensation is paid for purposes of subsection (e).
(g) The apportionment provided by this Section 956.2 shall not include in either the numerator or the denominator any payroll of persons exempt from tax under subsections (a) or (e) of Section 954.
SEC. 960.1. TAX CREDIT FOR OPENING A PHYSICAL LOCATION IN DESIGNATED AREAS IN THE CITY.
(a) A person or combined group that opens a physical location in the Designated Areas on or after January 1, 2023 through and including December 31, 2027, shall be allowed a credit against that person or combined group’s Gross Receipts Tax if the person or combined group did not have a physical location in the City for at least three years prior to opening the physical location. The credit under this Section 960.1 shall be an annual credit for each of up to three tax years immediately following the tax year in which the person or combined group opened the physical location in the Designated Areas, provided the person or combined group maintains a physical location in the Designated Areas in the tax year that the credit is taken. To be eligible for the credit, the person or combined group must take the credit for each tax year on an original Gross Receipts Tax return filed with the Tax Collector. The credit shall be in an amount per tax year, not to exceed $1,000,000 per tax year, calculated as follows:
(1) Ffor a person or combined group not engaged in business within the City as an administrative office, as defined in Section 953.8 of Article 12-A-1,:
(A) For tax years ending on or before December 31, 2024, 0.45% of the person or combined group’s taxable gross receipts during the tax year from one or more of the business activities of information, administrative and support services, financial services, insurance, and professional, scientific and technical services, as those activities are defined in Sections 953.2, 953.4, and 953.6 of this Article 12-A-1, without regard to any application of Section 953.9 of Article 12-A-1; and
(2) Ffor a person or combined group engaged in business within the City as an administrative office, as defined in Section 953.8 of Article 12-A-1, 0.7% of the person or combined group’s taxable payroll expense during the tax year.
* * * *
(h) Commencing with a report filed no later than October 31, 2024,:
(1) fFor the 2023 tax years 2023 and 2024, the Tax Collector shall submit an annual report by October 31 of the calendar year following each tax year to the Board of Supervisors for each tax year for which the credit under this Section 960.1 is in effect that sets forth aggregate information on the dollar amount of the credits taken each year and the number of businesses taking the credit; and
(2) For tax years 2025 through and including 2028, the Tax Collector shall submit an annual report by March 31 of the calendar year two years after each tax year to the Board of Supervisors that sets forth aggregate information on the dollar amount of the credits taken each year and the number of businesses taking the credit.
SEC. 960.2. TAX CREDIT FOR STADIUM OPERATOR ADMISSION TAXES PAID.
For tax years beginning on or after January 1, 2025, a person or combined group shall be allowed a credit against that person or combined group’s Gross Receipts Tax (including the administrative office tax imposed under Section 953.8) for 50% of Stadium Operator Admission Taxes under Article 11 of this Business and Tax Regulations Code paid to the City during the tax year and 50% of taxes paid to another local government during the tax year that are substantially similar to the Stadium Operator Admission Tax under Article 11 of this Code. In no event shall the credit under this Section 960.2 reduce a person or combined group’s Gross Receipts Tax liability to less than $0 for any tax year. The credit under this Section shall not be refundable and may not be carried forward to a subsequent year.
SEC. 960.3. TAX CREDIT FOR SUPERMARKETS AND OTHER GROCERY RETAILERS.
(a) For tax years beginning on or after January 1, 2025, a person or combined group shall be allowed a credit against that person or combined group’s Gross Receipts Tax equal to 0.5% of such person or combined group’s taxable gross receipts from business activities described in NAICS code 445110 (Supermarkets and Other Grocery Retailers (except Convenience Retailers)), up to a maximum annual credit of $4,000,000.
(b) For purposes of this Section 960.3, “taxable gross receipts” means a person or combined group’s gross receipts, not excluded under Section 954 of this Article 12-A-1, attributable to the City.
(c) In no event shall the credit under this Section 960.3 reduce a person or combined group’s Gross Receipts Tax liability to less than $0 for any tax year. The credit under this Section shall not be refundable and may not be carried forward to a subsequent year.
(d) Notwithstanding subsection (a), the credit under this Section 960.3 shall not be allowed against the Administrative Office Tax imposed under Section 953.8.
SEC. 960.4. CREDIT FOR FIRST LESSEES IN QUALIFIED BUILDINGS.
(a) The first person or combined group to both enter into a binding agreement to lease all or a portion of each Qualified Building and require at least 100 employees to occupy that Qualified Building shall be allowed a credit against that person or combined group’s Gross Receipts Tax (including any tax on administrative office business activities under Section 953.8). Any other person or combined group that meets these requirements for such Qualified Building shall not be entitled to the credit, even if their lease is for a different portion of the Qualified Building. The credit shall be an annual credit commencing in the tax year following the tax year in which the person or combined group entered into the lease of all or a portion of the Qualified Building and first required at least 100 employees to occupy the Qualified Building, and continuing for the lesser of 15 years or until the end of the tax year in which the person or combined group’s original lease term without extensions expires (the “Credit Term”); provided, however, that the person or combined group may only take the credit for each tax year during the Credit Term in which the person or combined group continues to lease the Qualified Building and continues to require at least 100 employees to occupy the Qualified Building. The person or combined group must take the credit for each tax year on an original Gross Receipts Tax return filed with the Tax Collector. The credit shall equal the lesser of: (1) the Gross Receipts Tax liability of the person or combined group for that tax year; and (2) $4,000,000.
(b) For purposes of this Section 960.4, “Qualified Building” means a building located within the City that meets all of the following requirements:
(1) The building contains at least 450,000 gross square feet, exclusive of any space provided under subsection (b)(7);
(2) Construction began on the building between November 5, 2024 and November 4, 2029, inclusive;
(3) Construction of the building incorporated at least 50% of the remains of the exterior walls of a prior structure (measured by the state of the structure when its owner of record on November 5, 2024 acquired it) that was at least 100 years old on November 5, 2024;
(4) Construction on the building created at least 500 construction jobs over the course of construction;
(5) At least $500,000,000 (not including the cost of the land or financing costs) was expended for the development and construction of the building;
(6) Except as provided in subsection (b)(7), the building is used exclusively for non‑residential purposes;
(7) The building is part of a project that provided (prior to issuance of the building’s first temporary certificate of occupancy) at least 50,000 gross square feet of publicly accessible open space or affordable housing, or that designated building space to be leased to or occupied by any organization that: (A) serves the community, including but not limited to an organization dedicated to educating youth, childcare, the arts, or serving low-income, unemployed, or unhoused persons; or (B) is tax exempt under Internal Revenue Code Section 501(c)(3). The requirement in this subsection (b)(7) may be satisfied with space that is not within or adjacent to the Qualified Building.
(c) The Planning Department shall, by January 1, 2025, establish procedures for developers and other persons to obtain certification that a building is a Qualified Building under subsection (b). To be eligible for the credit, the person or combined group claiming the credit must submit a copy of that certification with the person or combined group’s Gross Receipts Tax return.
(d) In no event shall the credit under this Section 960.4 reduce a person or combined group’s Gross Receipts Tax liability to less than $0 for any tax year. The credit under this Section shall not be refundable and may not be carried forward to a subsequent year.
SEC. 966. CONTROLLER REPORTS.
The Controller shall prepare reports by September 1, 2026, and September 1, 2027, respectively, that discuss current economic conditions in the City and the performance of the tax system revised by the voters in the ordinance adding this Section 966.
Section 6. Article 21 of the Business and Tax Regulations Code is hereby amended by revising Section 2106 to read as follows:
SEC. 2106. SMALL BUSINESS EXEMPTION.
(a) For tax years ending on or before December 31, 2024, nNotwithstanding any other provision of this Article 21, a person or combined group exempt from payment of the gross receipts tax under Section 954.1 of Article 12-A-1, as amended from time to time, shall also be exempt from payment of the Early Care and Education Commercial Rents Tax.
(b) For tax years beginning on or after January 1, 2025, notwithstanding any other provision of this Article 21, a “small business enterprise” shall be exempt from payment of the Early Care and Education Commercial Rents Tax. For purposes of this subsection (b), the term “small business enterprise” shall mean any person or combined group whose gross receipts within the City, determined under Article 12-A-1, did not exceed $2,325,000, adjusted annually in accordance with the increase in the Consumer Price Index: All Urban Consumers for the San Francisco/Oakland/Hayward Area for All Items as reported by the United States Bureau of Labor Statistics, or any successor to that index, as of December 31 of the calendar year two years prior to the tax year, beginning with tax year 2026, and rounded to the nearest $10,000. This subsection (b) shall not apply to a person or combined group subject to a tax on administrative office business activities in Section 953.8 of Article 12-A-1.
Section 7. Article 28 of the Business and Tax Regulations Code is hereby amended by revising Sections 2802, 2804, 2805, 2807, and 2813 and adding Sections 2804.1, 2804.2, 2804.3, 2804.4, 2804.5, 2804.6, 2804.7, 2804.8, 2804.9, 2804.10, 2804.11, 2805.3, and 2805.4, to read as follows:
SEC. 2802. FINDINGS AND PURPOSE.
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(c) In December, 2017 Donald Trump signed the “Tax Cuts and Jobs Act” into law which reduced the federal corporate rate from 35% to 21%, a 14% reduction. By comparison, this measure would be an average of less than a half of a percent tax for the gross receipts of San Francisco businesses over $50 million.
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SEC. 2804. IMPOSITION OF TAX.
(a) Except as otherwise provided in this Article 28, for the privilege of engaging in business in the City, the City imposes an annual Homelessness Gross Receipts Tax on each person engaged in business in the City that receives or is a member of a combined group that receives, more than $50,000,000 in total taxable gross receipts.
(b) If, after applying any rules or elections used to assign receipts to a business activity in Section 953.9 of Article 12-A-1, a person or combined group derives gross receipts from business activities described in only one of Sections 953.1 through 953.7 of Article 12-A-1, inclusive, the Homelessness Gross Receipts Tax shall be calculated by applying to the person or combined group’s taxable gross receipts in excess of $50,000,000 the following percentage that corresponds to the person or combined group’s business activities, as described in Sections 953.1 through 953.7 of Article 12-A-1, inclusive:
Business Activity Set |
Tax Rate |
Section 953.1 |
.175% |
Section 953.2 |
.500% |
Section 953.3 |
.425% |
Section 953.4 |
.690% |
Section 953.5 |
.475% |
Section 953.6 |
.600% |
Section 953.7 |
.325% |
(c) If, after applying any rules or elections used to assign receipts to a business activity in Section 953.9 of Article 12-A-1, a person or combined group derives gross receipts from business activities described in more than one of Sections 953.1 through 953.7 of Article 12‑A‑1, inclusive, the taxable gross receipts and rate or rates of tax to be applied to that person or combined group shall be determined as follows:
(1) The taxable gross receipts shall be determined on an aggregate basis in numbered order of Sections 953.1 through 953.7, inclusive, i.e., the taxable gross receipts for business activities described in Section 953.1 of Article 12-A-1 should be determined first, Section 953.2 of Article 12-A-1 second, and so on;
(2) The rates in subsection (b) shall apply to the gross receipts from the corresponding sets of business activities described in Sections 953.1 through 953.7 of Article 12‑A‑1, inclusive, except that the rate shall be 0% for the first $50,000,000 of the person or combined group’s total taxable gross receipts from all taxable business activities;
(3) Whether the 0% rate for the first $50,000,000 of the person or combined group’s total taxable gross receipts from all taxable business activities applies to any set of business activities after the first shall be determined by adding to the taxable gross receipts from that set of business activities all of the taxable gross receipts from all previous sets of business activities; and
(4) The Homelessness Gross Receipts Tax for the person or combined group shall be the sum of the liabilities for each set of business activities determined under subsections (c)(1) through (3).
(d) Notwithstanding any other subsection of this Section 2804, every person engaging in business within the City as an administrative office, as defined in Section 953.8 of Article 12-A-1, shall pay an annual homelessness administrative office tax measured by its total payroll expense, as defined in Section 953.8(f) of Article 12-A-1, that is attributable to the City. If a person is a member of a combined group, then its tax shall be measured by the total payroll expense of the combined group attributable to the City. Such combined group shall pay only the homelessness administrative office tax, and not the tax imposed under other subsections of this Section 2804, but a person or combined group may be liable for both the administrative office tax imposed by Section 953.8 of Article 12-A-1 and the homelessness administrative office tax imposed by this subsection (d). The homelessness administrative office tax rate for each tax year is 1.5%.
Unless specified otherwise, this homelessness administrative office tax shall be considered part of the Homelessness Gross Receipts Tax for all purposes.
(e) “Taxable gross receipts” means a person or combined group’s gross receipts, not excluded under Section 2805, attributable to the City. The person or combined group’s gross receipts that are attributable to the City shall be determined in the same manner as in Article 12-A-1, as amended from time to time.
(f) If the voters adopt any measure adding a business activity category in Section 953.7.5 of Article 12-A-1 at the November 6, 2018 consolidated general election, any receipts from business activities described in that Section 953.7.5 shall be assigned, for purposes of this Article 28, to one or more of Sections 953.1 through 953.7 of Article 12-A-1, inclusive, as if Section 953.7.5 were not added to Article 12-A-1.
(f) This Section 2804 shall apply to tax years ending on or before December 31, 2024.
SEC. 2804.1. IMPOSITION OF TAX.
(a) Except as otherwise provided under this Article 28, the City imposes and every person engaging in business within the City shall pay an annual homelessness gross receipts tax measured by the person’s gross receipts from all taxable business activities attributable to the City. A person’s liability for the homelessness gross receipts tax shall be calculated according to this Article 28.
(b) The homelessness gross receipts tax is a privilege tax imposed upon persons engaging in business within the City for the privilege of engaging in a business or occupation in the City.
(c) The tax on Administrative Office Business Activities imposed by Section 2804.9 is intended as a complementary tax to the homelessness gross receipts tax, and shall be considered a homelessness gross receipts tax for purposes of this Article 28.
(d) This Section 2804.1 shall apply to tax years beginning on or after January 1, 2025.
SEC. 2804.2. HOMELESSNESS GROSS RECEIPTS TAX APPLICABLE TO CATEGORY 1 BUSINESS ACTIVITIES.
(a) The homelessness gross receipts tax rates applicable to Category 1 Business Activities for tax years beginning on or after January 1, 2025 are:
0% for taxable gross receipts between $0 and $1,000,000
0% for taxable gross receipts between $1,000,000.01 and $2,500,000
0% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.164% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.164% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.164% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.164% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.246% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.328% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.41% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
0.492% for taxable gross receipts over $1,000,000,000
(b) “Category 1 Business Activities” has the same meaning as in Section 953.20(b) of Article 12-A-1 of this Business and Tax Regulations Code.
(c) The amount of taxable gross receipts from Category 1 Business Activities subject to the homelessness gross receipts tax shall be three-quarters of the amount determined under Section 956.1 of Article 12‑A‑1 plus one-quarter of the amount determined under Section 956.2 of Article 12‑A‑1.
SEC. 2804.3. HOMELESSNESS GROSS RECEIPTS TAX APPLICABLE TO CATEGORY 2 BUSINESS ACTIVITIES.
(a) The homelessness gross receipts tax rates applicable to Category 2 Business Activities for tax years beginning on or after January 1, 2025 are:
0% for taxable gross receipts between $0 and $1,000,000
0% for taxable gross receipts between $1,000,000.01 and $2,500,000
0% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.162% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.284% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.284% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.284% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.284% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.284% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.284% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
0.284% for taxable gross receipts over $1,000,000,000
(b) “Category 2 Business Activities” has the same meaning as in Section 953.21(b) of Article 12-A-1 of this Business and Tax Regulations Code.
(c) The amount of taxable gross receipts from Category 2 Business Activities subject to the homelessness gross receipts tax shall be the total amount of gross receipts derived from or related to real properties located within the City.
SEC. 2804.4. HOMELESSNESS GROSS RECEIPTS TAX APPLICABLE TO CATEGORY 3 BUSINESS ACTIVITIES.
(a) The homelessness gross receipts tax rates applicable to Category 3 Business Activities for tax years beginning on or after January 1, 2025 are:
0% for taxable gross receipts between $0 and $1,000,000
0% for taxable gross receipts between $1,000,000.01 and $2,500,000
0% for taxable gross receipts between $2,500,000.01 and $25,000,000
0% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.325% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.325% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.325% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.325% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.325% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.325% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
0.325% for taxable gross receipts over $1,000,000,000
(b) “Category 3 Business Activities” has the same meaning as in Section 953.22(b) of Article 12-A-1 of this Business and Tax Regulations Code.
(c) The amount of taxable gross receipts from Category 3 Business Activities subject to the homelessness gross receipts tax shall be the total amount of gross receipts derived from or related to real properties located within the City.
SEC. 2804.5. HOMELESSNESS GROSS RECEIPTS TAX APPLICABLE TO CATEGORY 4 BUSINESS ACTIVITIES.
(a) The homelessness gross receipts tax rates applicable to Category 4 Business Activities for tax years beginning on or after January 1, 2025 are:
0% for taxable gross receipts between $0 and $1,000,000
0% for taxable gross receipts between $1,000,000.01 and $2,500,000
0% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.246% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.41% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.41% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.574% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.574% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.656% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.656% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
0.738% for taxable gross receipts over $1,000,000,000
(b) “Category 4 Business Activities” has the same meaning as in Section 953.23(b) of Article 12-A-1 of this Business and Tax Regulations Code.
(c) The amount of taxable gross receipts from Category 4 Business Activities subject to the homelessness gross receipts tax shall be three-quarters of the amount determined under Section 956.1 of Article 12-A-1 plus one-quarter of the amount determined under Section 956.2 of Article 12-A-1.
SEC. 2804.6. HOMELESSNESS GROSS RECEIPTS TAX APPLICABLE TO CATEGORY 5 BUSINESS ACTIVITIES.
(a) The homelessness gross receipts tax rates applicable to Category 5 Business Activities for tax years beginning on or after January 1, 2025 are:
0% for taxable gross receipts between $0 and $1,000,000
0% for taxable gross receipts between $1,000,000.01 and $2,500,000
0% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.574% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.656% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.656% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.656% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.738% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.82% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.82% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
0.82% for taxable gross receipts over $1,000,000,000
(b) “Category 5 Business Activities” has the same meaning as in Section 953.24(b) of Article 12-A-1 of this Business and Tax Regulations Code.
(c) The amount of taxable gross receipts from Category 5 Business Activities subject to the homelessness gross receipts tax shall be three-quarters of the amount determined under Section 956.1 of Article 12-A-1 plus one-quarter of the amount determined under Section 956.2 of Article 12-A-1.
SEC. 2804.7. HOMELESSNESS GROSS RECEIPTS TAX APPLICABLE TO CATEGORY 6 BUSINESS ACTIVITIES.
(a) The homelessness gross receipts tax rates applicable to Category 6 Business Activities for tax years beginning on or after January 1, 2025 are:
0% for taxable gross receipts between $0 and $1,000,000
0% for taxable gross receipts between $1,000,000.01 and $2,500,000
0% for taxable gross receipts between $2,500,000.01 and $25,000,000
1.148% for taxable gross receipts between $25,000,000.01 and $50,000,000
1.476% for taxable gross receipts between $50,000,000.01 and $75,000,000
1.476% for taxable gross receipts between $75,000,000.01 and $100,000,000
1.64% for taxable gross receipts between $100,000,000.01 and $150,000,000
1.64% for taxable gross receipts between $150,000,000.01 and $250,000,000
1.64% for taxable gross receipts between $250,000,000.01 and $500,000,000
1.64% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
1.64% for taxable gross receipts over $1,000,000,000
(b) “Category 6 Business Activities” has the same meaning as in Section 953.25(b) of Article 12-A-1 of this Business and Tax Regulations Code.
(c) The amount of taxable gross receipts from Category 6 Business Activities subject to the homelessness gross receipts tax shall be three-quarters of the amount determined under Section 956.1 of Article 12-A-1 plus one-quarter of the amount determined under Section 956.2 of Article 12-A-1.
SEC. 2804.8. HOMELESSNESS GROSS RECEIPTS TAX APPLICABLE TO CATEGORY 7 BUSINESS ACTIVITIES.
(a) The homelessness gross receipts tax rates applicable to Category 7 Business Activities for tax years beginning on or after January 1, 2025 are:
0% for taxable gross receipts between $0 and $1,000,000
0% for taxable gross receipts between $1,000,000.01 and $2,500,000
0% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.328% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.492% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.492% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.656% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.656% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.738% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.738% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
0.82% for taxable gross receipts over $1,000,000,000
(b) “Category 7 Business Activities” has the same meaning as in Section 953.26(b) of Article 12-A-1 of this Business and Tax Regulations Code.
(c) Except as otherwise provided in subsection (d), the amount of taxable gross receipts from Category 7 Business Activities subject to the homelessness gross receipts tax shall be the total amount of gross receipts derived from or related to real properties located within the City.
(d) The amount of taxable gross receipts determined under subsection (c) shall be reduced by any amounts that were included in a person or combined group’s gross receipts under subsection (c) and that the person or combined group paid to a subcontractor for work related to the real properties located with the City during the tax year. There shall be no deduction for any other costs, including without limitation costs for materials, fees, equipment, or other services. To claim such a deduction, a person must maintain an itemized schedule of payments to subcontractors.
SEC. 2804.9. TAX ON ADMINISTRATIVE OFFICE BUSINESS ACTIVITIES.
For tax years beginning on or after January 1, 2025, notwithstanding Sections 2804.1 through 2804.8 and in lieu of the other taxes imposed under Sections 2804.1 through 2804.8, every person engaging in business within the City as an administrative office, as defined in Section 953.8 of Article 12‑A‑1, shall pay an annual homelessness administrative office tax in the manner set forth in Section 953.8, except that the homelessness administrative office tax rate shall be 1.5%.
SEC. 2804.10. PERSONS OR COMBINED GROUPS ENGAGED IN MULTIPLE BUSINESS ACTIVITY CATEGORIES.
For tax years beginning on or after January 1, 2025, if a person, or a combined group as described in Section 956.3 of Article 12-A-1 of this Business and Tax Regulations Code, derives gross receipts from more than one of Business Activity Categories 1 through 7, inclusive:
(a) If the person or combined group has $10,000 or less in gross receipts from any one of Business Activity Categories 1 through 7, inclusive, before allocating or apportioning gross receipts under Section 956 of Article 12-A-1, such person or combined group may combine those gross receipts for all purposes related to computing the homelessness gross receipts tax with the gross receipts from whichever of Business Activity Categories 1 through 7, inclusive, generated the most gross receipts for the person or combined group, before allocating or apportioning gross receipts under Section 956. If there is no Business Activity Category that generated the most gross receipts for the person or combined group because the person or combined group generated the same amount of gross receipts from one or more Business Activity Categories, then such person or combined group may combine the gross receipts in this subsection (a) for all purposes related to computing the homelessness gross receipts tax with the gross receipts from whichever Business Activity Category has the highest rates among the Business Activity Categories that generated the same amount of gross receipts.
(b) If the person or combined group continues to derive gross receipts from more than one of Business Activity Categories 1 through 7, inclusive, after applying subsection (a) of this Section 2804.10, then such person or combined group shall separately compute the homelessness gross receipts tax for each Business Activity Category as provided in the Section applicable to that particular Business Activity Category as follows:
(1) The small business exemption provided in Section 2805.4 shall apply only if the sum of receipts within the City from all Business Activity Categories does not exceed the applicable threshold in Section 2805.4 in total; and
(2) The homelessness gross receipts tax liability for the person or combined group shall be the sum of the liabilities for each Business Activity Category.
SEC. 2804.11. PERSONS DERIVING NO GROSS RECEIPTS FROM BUSINESS ACTIVITIES OUTSIDE THE CITY.
(a) Notwithstanding any other provision of this Article 28, any person subject to the homelessness gross receipts tax who derives non-exempt gross receipts from business activities within the City and derives no gross receipts from business activities outside the City is subject to tax on all non-exempt gross receipts.
(b) This Section 2804.11 shall apply to tax years beginning on or after January 1, 2025.
SEC. 2805. EXEMPTIONS AND EXCLUSIONS.
(a) An organization that is exempt from income taxation by Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the California Revenue and Taxation Code or Subchapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, as amended, as qualified by Sections 502, 503, 504, and 508 of the Internal Revenue Code of 1986, as amended, shall be exempt from taxation under this Article 28, only so long as those exemptions continue to exist under state or federal law.
(b) For only so long as and to the extent that the City is prohibited from imposing the Homelessness Gross Receipts Tax, any person upon whom the City is prohibited under the Constitution or laws of the State of California or the Constitution or laws of the United States from imposing the Homelessness Gross Receipts Tax shall be exempt from the Homelessness Gross Receipts Tax.
(c) For purposes of this Article 28, gross receipts shall not include receipts that are excluded from gross receipts for purposes of the gross receipts tax imposed by Article 12-A-1, and also shall not include receipts subject to a gross receipts tax on commercial rents imposed as a result of a measure adopted by the voters of San Francisco in the June 5, 2018 election.
(d) This Section 2805 shall apply to tax years ending on or before December 31, 2024.
SEC. 2805.3. EXEMPTIONS AND EXCLUSIONS.
(a) An organization that is exempt from income taxation by Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the California Revenue and Taxation Code or Subchapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, as amended, as qualified by Sections 502, 503, 504, and 508 of the Internal Revenue Code of 1986, as amended, shall be exempt from taxation under this Article 28, only so long as those exemptions continue to exist under state or federal law.
(b) For purposes of this Article 28, gross receipts as defined in Section 952.3 shall not include receipts from business activities if, and only so long as and to the extent that, the City is prohibited from taxing such receipts under the Constitution or laws of the United States or under the Constitution or laws of the State of California.
(c) Rent Controlled Buildings Exclusion. A person subject to the homelessness gross receipts tax may exclude from gross receipts in any tax year 50% of the total amount received from the rental of real property to tenants in occupancy at any location in the City, which is subject to limits on rent increases pursuant to the Residential Rent Stabilization and Arbitration Ordinance, Administrative Code, Chapter 37, Section 37.1 et seq.
(d) Exclusion of Certain Sales of Real Property. For purposes of this Article 28, gross receipts as defined in Section 952.3 shall not include receipts from any sales of real property with respect to which the Real Property Transfer Tax imposed by Article 12-C has been paid to the City.
(e) For only so long as and to the extent that the City is prohibited from imposing the tax under this Article 28, the following persons shall be exempt from the homelessness gross receipts tax:
(1) Banks and financial corporations exempt from local taxation under Article XIII, Section 27 of the California Constitution and Revenue and Taxation Code Section 23182;
(2) Insurance companies exempt from local taxation under Article XIII, Section 28 of the California Constitution;
(3) Persons engaging in business as a for-hire motor carrier of property under Revenue and Taxation Code Section 7233;
(4) Persons engaging in intercity transportation as a household goods carrier under Public Utilities Code Section 5327;
(5) Charter-party carriers operating limousines that are neither domiciled nor maintain a business office within the City under Public Utilities Code Section 5371.4; and
(6) Any person upon whom the City is prohibited under the Constitution or laws of the State of California from imposing the homelessness gross receipts tax.
(f) For purposes of this Article 28, gross receipts shall not include receipts subject to the Early Care and Education Commercial Rents Tax under Article 21 of this Business and Tax Regulations Code.
(g) This Section 2805.3 shall apply to tax years beginning on or after January 1, 2025.
SEC. 2805.4. SMALL BUSINESS EXEMPTION.
(a) Notwithstanding any other provision of this Article 28, a person or combined group exempt from payment of the gross receipts tax under Section 954.1 of Article 12-A-1, as amended from time to time, shall also be exempt from payment of the homelessness gross receipts tax.
(b) This Section 2805.4 shall apply to tax years beginning on or after January 1, 2025.
SEC. 2807. TAX COLLECTOR AUTHORIZED TO DETERMINE GROSS RECEIPTS.
(a) For tax years ending on or before December 31, 2024, tThe Tax Collector may, in his or her reasonable discretion, independently establish a person or combined group’s gross receipts within the City and establish or reallocate gross receipts among related entities so as to fairly reflect the gross receipts within the City of all persons and combined groups.
(b) For tax years beginning on or after January 1, 2025, the Tax Collector shall have the same authority with respect to the homelessness gross receipts tax as the Tax Collector has with respect to the gross receipts tax under Section 957 of Article 12-A-1 of this Business and Tax Regulations Code.
SEC. 2813. SEVERABILITY.
(a) Except as provided in Section 2813(b), below, if any section, subsection, sentence, clause, phrase, or word of this Article 28, or any application thereof to any person or circumstance, is held to be invalid or unconstitutional by an unappealable decision of a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions or applications of this Article. The People of the City and County of San Francisco hereby declare that, except as provided in Section 2813(b), they would have adopted this Article 28 and each and every section, subsection, sentence, clause, phrase, and word not declared invalid or unconstitutional without regard to whether any other portion of this Article or application thereof would be subsequently declared invalid or unconstitutional.
(b) If the imposition of the Homelessness Gross Receipts Tax in Section 2804 for tax years ending on or before December 31, 2024, or in Sections 2804.1 through 2804.11, inclusive, for tax years beginning on or after January 1, 2025, is held in its entirety to be facially invalid or unconstitutional in a final unappealable court determination, the remainder of this Article 28 shall be void and of no force and effect, and the City Attorney shall cause it to be removed from the Business and Tax Regulations Code, and likewise cause Section 10.100-164 to be removed from the Administrative Code.
Section 8. Article 33 of the Business and Tax Regulations Code is hereby amended by revising Sections 3302, 3303, and 3304, to read as follows:
SEC. 3302. DEFINITIONS.
(a) Unless otherwise defined in this Article 33, the terms used in this Article shall have the meanings given to them in Articles 6, 12-A, and 12-A-1 of the Business and Tax Regulations Code, as amended from time to time.
(b) For purposes of this Article 33:
(1), Tthe following definitions apply for tax years ending on or before December 31, 2024:.
“Compensation” means wages, salaries, commissions, bonuses, property issued or transferred in exchange for the performance of services (including but not limited to stock options), compensation for services to owners of pass-through entities, and any other form of remuneration paid to employees for services.
“Executive Pay Ratio” means the ratio of the annual Compensation paid to the person or combined group’s Highest-Paid Managerial Employee for a tax year to the median Compensation paid to the person or combined group’s full-time and part-time employees based in the City for that tax year, determined on a full-time equivalency and annualized basis. For purposes of this definition:
(ai) An employee is “based in the City for [a] tax year” if the employee’s total working hours in the City for the person or combined group during the tax year exceeds the employee’s total working hours in any other local jurisdiction for the person or combined group during the tax year.
(bii) Compensation paid to a part-time employee for the tax year shall be converted to a “full-time equivalency” by multiplying the part-time employee’s Compensation for the tax year by 40, and dividing the result by the average number of hours the part-time employee worked per week during the tax year for the person or combined group.
(ciii) Compensation paid to an employee who was employed by the person or combined group for only a portion of the tax year shall be “annualized” by multiplying the employee’s Compensation (or, as stated, for a part-time employee, full-time equivalent Compensation) for the tax year by 52, and dividing the result by the number of weeks that the employee was employed by that person or combined group during the tax year.
“Highest-Paid Managerial Employee” means the individual employee or officer of a person or combined group with managerial responsibility in a business function who received the most Compensation for a tax year.
(2) The following definitions apply for tax years beginning on or after January 1, 2025:
“Compensation” means wages, salaries, commissions, bonuses, property issued or transferred in exchange for the performance of services (including but not limited to stock options), compensation for services to owners of pass-through entities, and any other form of remuneration paid to employees for services.
“Executive Pay Ratio” means the ratio of the Compensation paid to the person or combined group’s Highest-Paid Managerial Employee for a tax year to the median Compensation paid to the person or combined group’s full-time and part-time employees based in the City for that tax year. The median Compensation paid to the person or combined group’s full-time and part-time employees based in the City for that tax year shall be determined on a full-time equivalency and annualized basis, and shall be determined without regard to any Compensation paid to the Highest-Paid Managerial Employee who may be based in the City for that tax year. For purposes of this definition:
(i) An employee is “based in the City for [a] tax year” if the employee’s total working hours in the City for the person or combined group during the tax year exceeds the employee’s total working hours in any other local jurisdiction for the person or combined group during the tax year.
(ii) Compensation paid to a part-time employee for the tax year shall be converted to a “full-time equivalency” by multiplying the part-time employee’s Compensation for the tax year by 40, and dividing the result by the average number of hours the part-time employee worked per week during the tax year for the person or combined group.
(iii) Compensation paid to an employee who was employed by the person or combined group for only a portion of the tax year shall be “annualized” by multiplying the employee’s Compensation (or, as stated, for a part-time employee, full-time equivalent Compensation) for the tax year by 52, and dividing the result by the number of weeks that the employee was employed by that person or combined group during the tax year.
“Highest-Paid Managerial Employee” means the individual employee or officer of a person or combined group with managerial responsibility in a business function who received the most Compensation for a tax year. For purposes of determining the Highest-Paid Managerial Employee and the Compensation of such employee, Compensation shall not be annualized or converted to a full-time equivalency.
SEC. 3303. IMPOSITION OF TAX.
(a) Except as otherwise provided in this Article 33, commencing with tax years beginning on or after January 1, 2022, for the privilege of engaging in business in the City, the City imposes an annual Overpaid Executive Gross Receipts Tax on each person engaging in business within the City where the Executive Pay Ratio for the tax year of that person or the combined group of which it is a part exceeds 100:1.
(b) For tax years ending on or before December 31, 2024, tThe Overpaid Executive Gross Receipts Tax shall be calculated as follows:
(1) 0.1% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 100:1, but less than or equal to 200:1;
(2) 0.2% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 200:1, but less than or equal to 300:1;
(3) 0.3% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 300:1, but less than or equal to 400:1;
(4) 0.4% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 400:1, but less than or equal to 500:1;
(5) 0.5% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 500:1, but less than or equal to 600:1; or
(6) 0.6% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 600:1.
(c) For tax years 2025 and 2026, the Overpaid Executive Gross Receipts Tax shall be calculated as follows:
(1) 0.02% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 100:1, but less than or equal to 200:1;
(2) 0.04% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 200:1, but less than or equal to 300:1;
(3) 0.06% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 300:1, but less than or equal to 400:1;
(4) 0.08% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 400:1, but less than or equal to 500:1;
(5) 0.1% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 500:1, but less than or equal to 600:1; or
(6) 0.12% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 600:1.
(d) For tax year 2027, the Overpaid Executive Gross Receipts Tax shall be calculated as follows:
(1) 0.021% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 100:1, but less than or equal to 200:1;
(2) 0.042% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 200:1, but less than or equal to 300:1;
(3) 0.062% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 300:1, but less than or equal to 400:1;
(4) 0.083% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 400:1, but less than or equal to 500:1;
(5) 0.104% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 500:1, but less than or equal to 600:1; or
(6) 0.125% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 600:1.
(e) For tax years beginning on or after January 1, 2028, the Overpaid Executive Gross Receipts Tax shall be calculated as follows:
(1) 0.021% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 100:1, but less than or equal to 200:1;
(2) 0.043% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 200:1, but less than or equal to 300:1;
(3) 0.064% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 300:1, but less than or equal to 400:1;
(4) 0.086% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 400:1, but less than or equal to 500:1;
(5) 0.107% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 500:1, but less than or equal to 600:1; or
(6) 0.129% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 600:1.
(cf) For purposes of this Section 3303, “taxable gross receipts” means a person or combined group’s gross receipts, not excluded under Section 3304, attributable to the City. The person or combined group’s gross receipts that are attributable to the City shall be determined in the same manner as in Article 12-A-1, as amended from time to time.
(dg) Notwithstanding any other subsection of this Section 3303, every person engaging in business within the City as an administrative office, as defined in Section 953.8 of Article 12-A-1, shall pay an annual overpaid executive administrative office tax if the Executive Pay Ratio for the tax year of that person or the combined group of which it is a part exceeds 100:1. This overpaid executive administrative office tax shall be measured by the person’s total payroll expense, as defined in Section 953.8(f) of Article 12-A-1, that is attributable to the City. If a person is a member of a combined group, then its tax shall be measured by the total payroll expense of the combined group attributable to the City. Such person or combined group shall pay only the overpaid executive administrative office tax, and not the tax imposed under other subsections of this Section 3303, but a person or combined group may be liable for the administrative office tax imposed by Section 953.8 of Article 12‑A‑1 and the homelessness administrative office tax imposed by Section 2804(d) or Section 2804.9 of Article 28 in addition to the overpaid executive administrative office tax imposed by this subsection (dg). Unless specified otherwise, this overpaid executive administrative office tax shall be considered part of the Overpaid Executive Gross Receipts Tax for all purposes.
(1) For tax years ending on or before December 31, 2024, tThe overpaid executive administrative office tax shall be calculated as follows:
(1A) 0.4% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 100:1, but less than or equal to 200:1;
(2B) 0.8% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 200:1, but less than or equal to 300:1;
(3C) 1.2% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 300:1, but less than or equal to 400:1;
(4D) 1.6% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 400:1, but less than or equal to 500:1;
(5E) 2% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 500:1, but less than or equal to 600:1; or
(6F) 2.4% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 600:1.
(2) For tax years 2025 and 2026, the overpaid executive administrative office tax shall be calculated as follows:
(A) 0.08% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 100:1, but less than or equal to 200:1;
(B) 0.16% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 200:1, but less than or equal to 300:1;
(C) 0.24% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 300:1, but less than or equal to 400:1;
(D) 0.32% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 400:1, but less than or equal to 500:1;
(E) 0.4% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 500:1, but less than or equal to 600:1; or
(F) 0.48% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 600:1.
(3) For tax year 2027, the overpaid executive administrative office tax shall be calculated as follows:
(A) 0.083% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 100:1, but less than or equal to 200:1;
(B) 0.166% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 200:1, but less than or equal to 300:1;
(C) 0.25% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 300:1, but less than or equal to 400:1;
(D) 0.333% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 400:1, but less than or equal to 500:1;
(E) 0.416% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 500:1, but less than or equal to 600:1; or
(F) 0.499% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 600:1.
(4) For tax years beginning on or after January 1, 2028, the overpaid executive administrative office tax shall be calculated as follows:
(A) 0.086% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 100:1, but less than or equal to 200:1;
(B) 0.171% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 200:1, but less than or equal to 300:1;
(C) 0.257% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 300:1, but less than or equal to 400:1;
(D) 0.343% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 400:1, but less than or equal to 500:1;
(E) 0.428% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 500:1, but less than or equal to 600:1; or
(F) 0.514% of the person or combined group’s total payroll expense attributable to the City for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 600:1.
SEC. 3304. EXEMPTIONS AND EXCLUSIONS.
(a) An organization that is exempt from income taxation by Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the California Revenue and Taxation Code or Subchapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, as amended, as qualified by Sections 502, 503, 504, and 508 of the Internal Revenue Code of 1986, as amended, shall be exempt from taxation under this Article 33, only so long as those exemptions continue to exist under state or federal law.
(b) For only so long as and to the extent that the City is prohibited from imposing the Overpaid Executive Gross Receipts Tax, any person upon whom the City is prohibited under the Constitution or laws of the State of California or the Constitution or laws of the United States from imposing the Overpaid Executive Gross Receipts Tax shall be exempt from the Overpaid Executive Gross Receipts Tax.
(c) For purposes of this Article 33, gross receipts shall not include receipts that are excluded from gross receipts for purposes of the gross receipts tax imposed by Article 12-A-1.
(d) A person or combined group exempt from the gross receipts tax as a small business enterprise under Section 954.1 of Article 12-A-1 shall also be exempt from taxation under this Article 33. But the exemption in this subsection (d) of Section 3304 shall not apply to persons subject to the overpaid executive administrative office tax in subsection (dg) of Section 3303.
(e) For tax years commencing on or after January 1, 2025, persons or combined groups that meet both of the following two requirements shall be exempt from the Overpaid Executive Gross Receipts Tax in this Article 33:
(1) The total combined number of employees of the person and its related entities within the United States as of the last day of the tax year was 1,000 or less; and
(2) The total combined gross receipts of that person and its related entities reported on United States federal income tax return(s) for the tax year was $1,000,000,000 or less.
Section 9. Amendment of Ordinance by Board of Supervisors. Sections 6.24-1, 863, 962, 2113, 2811, and 3310 of Articles 6, 12, 12‑A‑1, 21, 28, and 33, respectively, of the Business and Tax Regulations Code shall apply to those Articles as amended by this ordinance.
Section 10. Appropriations Limit Increase. Pursuant to California Constitution Article XIII B and applicable laws, for four years from November 5, 2024, the appropriations limit for the City shall be increased by the revenues collected under Articles 12, 12-A-1, 28, and 33 of the Business and Tax Regulations Code.
Section 11. Scope of Ordinance. In enacting this ordinance, the People of the City and County of San Francisco intend to amend only those words, phrases, paragraphs, subsections, sections, articles, numbers, punctuation marks, charts, diagrams, or any other constituent parts of the Municipal Code that are explicitly shown in this ordinance as additions or deletions, in accordance with the “Note” that appears under the official title of the ordinance.
Section 12. Severability. If any section, subsection, sentence, clause, phrase, or word of this ordinance, or any application thereof to any person or circumstance, is held to be invalid or unconstitutional by a decision of a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions or applications of the ordinance. The People of the City and County of San Francisco hereby declare that they would have adopted this ordinance and each and every section, subsection, sentence, clause, phrase, and word not declared invalid or unconstitutional without regard to whether any other portion of this ordinance or application thereof would be subsequently declared invalid or unconstitutional.
Section 13. Effective Date. The effective date of this ordinance shall be ten days after the date the official vote count is declared by the Board of Supervisors.
Section 14. Conflicting Measures. If both this ordinance and another ballot measure or measures imposing, amending, or repealing a San Francisco tax measured by gross receipts appear on the same ballot, and this ordinance obtains more votes than the other measure or measures, the other measure or measures shall be deemed to conflict with this ordinance. In such case, the provisions of this ordinance shall prevail in their entirety, and the provisions of the other measure or measures shall be null and void.
Section 15. Termination and Reinstatement. At any time before January 1, 2025, the Mayor, upon recommendation from the City Attorney, Controller, and Treasurer, may terminate implementation of this ordinance by issuing a written notice to the Board of Supervisors and the Controller. If the Mayor terminates this ordinance, the Board of Supervisors, upon recommendation from the City Attorney, Controller, and Treasurer, shall have the authority to reinstate this ordinance commencing on January 1 of a future calendar year by approving an ordinance that becomes effective no later than December 1 prior to the calendar year in which this ordinance is to be reinstated. The authority of the Board of Supervisors to reinstate this ordinance shall terminate following approval of a subsequent ballot measure that amends any of the taxes amended by this ordinance.
Section 16. Legal Defense. The People of the City and County of San Francisco desire that this ordinance, if approved by the voters and thereafter challenged in court, be defended by the City. The People, by approving this ordinance, hereby declare that the proponents of this ordinance have a direct and personal stake in defending this ordinance from constitutional or statutory challenges to the ordinance’s validity or implementation. In the event that the City fails to defend this ordinance, or the City fails to appeal an adverse judgment against the constitutionality, statutory permissibility or implementation of this ordinance, in whole or in part, in any court of law, the ordinance’s proponents shall be entitled to assert their direct personal stake by defending the ordinance’s validity and implementation in any court of law and shall be empowered by the People through this ordinance to act as agents of the People. The City shall indemnify the proponents for reasonable expenses and any losses incurred by the proponents, as agents, in defending the validity and/or implementation of the challenged ordinance. The rate of indemnification shall be no more than the amount it would cost the City to perform the defense itself.