San Francisco's New Tax and Fee Proposals

You might occasionally hear me bitching and moaning about our San Francisco Board of Realtors.  It usually has to do with the fact that the board (and actually every Realtor board and association) should be much more transparent and be ready and willing to provide information to the general public without having to sign up to work with a Realtor.  (Though I can give you a million reasons to work with a real estate agent, and I think you’d be CRAZY not to, I don’t want to force you to do so by withholding information from you.)

And while I do have some issues with some policies, I honestly, I don’t give the Association enough credit at times. 

So this time I am giving them props – they provided a summary of the latest tax and fee proposals that the SF Supes are proposing. 

And now, I’m providing it to you.

New Tax and Fee Proposals—Supervisors’ Answer to Stimulating Local Economy

The San Francisco Board of Supervisors always marches to its own drummer. While everyone in Washington, D.C. and heads of state the world over are talking about the need to cut taxes to stimulate the economy, the Board of Supervisors is talking about conducting a special election to seek voter approval of a host of new tax and fee increase proposals. Their objective is to generate enough new revenue to be able to maintain current government spending levels—all of this while everyone in the private sector is cutting back.

A special election in June is off the table but one is still possible in August.

Here’s a summary of what the board is considering to submit to the voters for their approval at a special election in August or at the regular election in November.

Ordering Submission of Gross Receipts Tax to Voters—Supervisor Avalos

Ordinance amending the Business and Tax Regulations Code to: (1) enact a new Article 12-A-1 (Gross Receipts Tax Ordinance), Sections 951 through 958, to impose a gross receipts tax on persons engaging in business activities in San Francisco; (2) amend Article 12 (Business Registration Ordinance) to conform business registration requirements with the enactment of Article 12-A-1 (Gross Receipts Tax Ordinance); (3) amend Article 6 (Common Administrative Provisions) to conform them with the enactment of Article 12-A-1 (Gross Receipts Tax Ordinance); and (4) amend Article 12-A (Payroll Expense Tax Ordinance) to conform it with the enactment of Article 12-A-1 (Gross Receipts Tax Ordinance). 090133

One-half of one percent (0.50%) Sales Tax Increase for Emergency Health and Human Services and Public Protection—Supervisor Avalos

Ordinance amending the San Francisco Business and Tax Regulations Code to add Article 16-A to provide support for emergency health and human services and public protection to residents of the City and County of San Francisco by imposing a transactions (sales) and use tax at the rate of one-half of one percent (0.50%) for a period of three (3) years, to be administered by the State Board of Equalization in accordance with Parts 1.6 and 1.7 of Division 2 of the California Revenue and Taxation Code. 090133

Ordering Submission of Proposed Payroll Expense Tax Amendment to Voters—Supervisor Chiu

Ordinance amending (1) Section 903.1 to reduce the Payroll Expense Tax rate from 1.5% to 1.0%, for business whose taxable payroll expense exceeds $300,000, but is less than or equal to $400,000, beginning with the 2010 tax year; and (2) Section 905-A to increase the Small Business Tax Exemption to include all taxpayers whose taxable payroll expense is $300,000 or less, beginning with the 2010 tax year. 090135

Ordinance imposing a local assessment on all vehicles in San Francisco that are subject to Department of Motor Vehicle registration

Ordinance amending the San Francisco Business and Tax Regulations Code to add Article 8 imposing a voter-approved local assessment on the privilege of a resident of the City and County to operate upon the public highways in the City and County a vehicle or trailer coach, the registrant of which is subject to tax under Part 5 (commencing with Section 10701) of the California Revenue and Taxation Code, at a rate not to exceed the difference between two percent of the market value of the vehicle or trailer coach and the rate imposed by the State of California pursuant to Section 10751 of the Revenue and Taxation Code, administered by the State Department of Motor Vehicles; acknowledging that state law has not yet been enacted authorizing the imposition of the assessment but approving imposition of such a charge at the specified rate when and if state law authorizes the City to impose it. 090188

Adopting and submitting to the voters an ordinance imposing a local assessment on all vehicles in San Francisco that are subject to Department of Motor Vehicle registration— Supervisors Chiu, Dufty

Ordinance adopting and submitting to the voters the ordinance amending the San Francisco Business and Tax Regulations Code to add Article 8 imposing a voter-approved local assessment on the privilege of a resident of the City and County to operate upon the public highways in the City and County a vehicle or trailer coach, the registrant of which is subject to tax under Part 5 (commencing with Section 10701) of the California Revenue and Taxation Code, at a rate not to exceed the difference between two percent of the market value of the vehicle or trailer coach and the rate imposed by the State of California pursuant to Section 10751 of the Revenue and Taxation Code, administered by the State Department of Motor Vehicles; acknowledging that state law has not yet been enacted authorizing the imposition of the assessment but approving imposition of such a charge at the specified rate when and if state law authorizes the City to impose it. 090136

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