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.”

jsabatini@sfexaminer.com

Election 2020san francisco news

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

Just Posted

San Francisco plans to reopen the Upper Great Highway, which had been closed for recreational use during the COVID pandemic. (Kevin N. Hume/S.F. Examiner)
Nearly 4,000 San Francisco residents reached for a recent survey favor closing the Upper Great Highway indefinitely (Kevin N. Hume/S.F. Examiner)
San Francisco plans to reopen the Upper Great Highway, which had been closed for recreational use during the COVID pandemic. (Kevin N. Hume/S.F. Examiner)
Great Highway to reopen on weekdays, sparking renewed debate

The Upper Great Highway will soon reopen to vehicles for the first… Continue reading

Second grader Genesis Ulloa leads students in an after-school community hub in a game at the Mission YMCA on Friday, May 7, 2021. (Kevin N. Hume/S.F. Examiner)
SF parents face school year with hope, trepidation and concern

‘Honestly, I don’t know how I’m going to deal with it’

Health care workers in the intensive care unit at Providence Saint John’s Health Center in Santa Monica, with Alejandro Balderas, a 44-year-old patient who later died. Even in California, a state with a coronavirus vaccination rate well above average, the number of people hospitalized with COVID-19 has nearly doubled in the past two weeks, according to a New York Times database. (Isadora Kosofsky/The New York Times)
Why COVID took off in California, again

‘The good news is: The vaccines are working’

Most Read