Tuesday, February 23, 2010

CALL TO ACTION! Support Payroll Tax Relief For Businesses on February 24, 2010 - Budget and Finance Committee Hearing

BOMA San Francisco Members:

The New Jobs Payroll Tax Exclusion Measure is scheduled to be heard by the San Francisco Budget and Finance Committee on February 24, 2010 at 11:00 a.m. at City Hall, Room 250. BOMA San Francisco building owners, property managers/tenants and vendors should attend the committee hearing to support payroll tax relief for the businesses in San Francisco.

Please click here to view BOMA San Francisco's letter of support.

THE CURRENT PROPOSAL: The New Jobs Payroll Tax Exclusion would cap a businesses' payroll tax liability at 2009 level for two years. This means that any business that creates a job in 2010 or 2011 would not have to pay payroll tax on that hire until 2012. By eliminating the payroll tax on new jobs, the City will remove a disincentive to create a job in this down economy. The city's chief economist said last week that this exemption is one of the most cost-effective ways for the city to spur private sector job-growth.  Click on the link to read the legislation and legislative digest

PROPOSED TAILORING OF THE PROPOSAL:  In order to be eligible for the New Jobs Payroll Tax Exclusion businesses have to show year over year growth in 2010 and 2011. In addition businesses must hire someone who has been previously unemployed for at least 60 days. Businesses that satisfy these two elements will receive a full payroll tax credit in 2011 for those new hires.

  • San Francisco has an unemployment rate of 9.4%, up from 6.5% a year ago.  In other words, there are 41,700 unemployed people in San Francisco.  
  • San Francisco imposes a local business tax on job creation in the form of a payroll tax. The City needs to incentivize job creation by temporarily eliminating the payroll tax on new job growth.  This proposal quite simply reduces the cost of creating a job.
If you can't attend the committee hearing, please take a minute to review the measure and email the San Francisco Board of Supervisors President as well as members of the Budget & Finance Committee to voice your support and ask them to vote in favor of this important measure:

  Board of Supervisors President David Chiu  - david.chiu@sfgov.org
   Budget and Finance Committee Members
      Supervisor John Avalos - john.avalos@sfgov.org
      Supervisor Ross Mirkarimi - ross.mirkarimi@sfgov.org
     Supervisor Sean Elsbernd - sean.elsbernd@sfgov.org

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