Mayor London Breed and the Board of Supervisors placed Proposition F, a business tax overhaul, on the ballot. (Christopher Victorio/Special to S.F. Examiner)(Christopher Victorio/Special to S.F. Examiner)

Mayor London Breed and the Board of Supervisors placed Proposition F, a business tax overhaul, on the ballot. (Christopher Victorio/Special to S.F. Examiner)(Christopher Victorio/Special to S.F. Examiner)

Voters approving Prop. F, a business tax reform measure

Voters are favoring Proposition F, a reform of a San Francisco business tax supporting a complete elimination of a levy on payroll and generating new revenue in the coming years.

In returns released early Wednesday, 219,205 residents, or 68.27 percent, voted yes, and 101,885, or 31.73 percent, voted no for the proposal.


Prop. F, the Business Tax Overhaul, was placed on the ballot by Mayor London Breed and the Board of Supervisors to reform the way The City taxes businesses.

It would finish the planned phasing out of the payroll tax in favor of only a gross receipts tax on businesses, which began with voter-approved Proposition E in 2012. It adjusts the rates to increase right away the tax on Big Tech, otherwise known as informational services, to equal the rates paid by industries financial services.

Other industries will start to see a gradual tax increase beginning in 2022. When fully implemented, The City is expected to generate $97 million annually.

The measure gives a temporary tax break to some of the hardest hit industries by the COVID-19 pandemic, including hotels, restaurants, manufacturing and retail.

More small businesses are exempted from paying the gross receipts on the measure as well. The exemption would increase from the current $1 million increase the threshold under which small businesses are exempt from paying the gross receipts tax. Businesses with under $1.17 million gross receipts currently do not pay the tax; that would increase to $2 million.

The San Francisco Realtors Association led a campaign against the measure, while the San Francisco Labor Council campaigned for the measure.

To kick off the campaign for the measure in October, Breed said in a statement, “I’m proud we’ve come together on Proposition F, which will reform our business taxes, release critical funding for childcare, and provide new revenue to help support our city as we emerge from this pandemic.”

Election 2020san francisco news

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at

Just Posted

Students in an after-school community hub move quickly through a social circle as they play a game at the Mission YMCA on Friday, May 7, 2021. (Kevin N. Hume/S.F. Examiner)
Parents scramble for ‘Summer Together’ spaces

City program offering free camps sees high demand, confusion over enrollment

The San Francisco Giants celebrate team legend Willie Mays' 90th birthday before taking on the San Diego Padres at Oracle Park on May 7, 2021 in San Francisco, California. (Photography by Chris Victorio | Special to the S.F. Examiner).
Willie Mays returns to the ballpark for a special birthday bash

Giants celebrate No. 24’s 90th in an intimate party for a few thousand friends

Legislation introduced by Assemblymember Phil Ting has expanded the range of people who can request a gun violence restraining order against someone. (Kevin N. Hume/S.F. Examiner)
Use of gun violence restraining orders continues to rise

For the fourth year in a row, the number of gun violence… Continue reading

The Port of San Francisco, which controls much of the The City’s waterfront, faces potential layoffs due to a financial crisis caused by the pandemic. 
Steven Ho/
Special to S.F. Examiner
In a financial ‘crisis,’ SF Port officials lobby for stimulus funding

Looking to right their financial ship, Port of San Francisco officials are… Continue reading

Police Chief Bill Scott on Wednesday said a rebranding and reoganization of the former Gang Task Force amounts to “more than just the name change.” (Kevin N. Hume/S.F. Examiner)
Faced with surge in shootings, Chief Scott reenvisions SFPD’s Gang Task Force

New Community Violence Reduction Team adds officers with community-policing experience

Most Read