BOMA San Francisco Members:
The Mayor, Board of Supervisors and the business community have reached an accord on reshaping the current business tax program for the City and County of San Francisco. The current format is based on payroll. The new tax model will be based on gross receipts. BOMA San Francisco members and staff have been deeply involved in the discussions and have advocated for a fair tax rate for the commercial real estate industry.
- An updated annual business licensing fee schedule that will be effective beginning in 2013.
- Funds allocated to an affordable housing trust fund;
- This new model of gross receipt taxation is less any real estate or parking taxes paid by the property. BOMA is neither supportive or opposed to this tax measure.
The current payroll tax is 1.5% on payrolls that exceed $250,000 annually. The proposed gross receipts tax rate for real estate is .285% on the first $5 million in revenues, and .30% on revenues above $5 million. The gross receipts tax applies only to revenues collected on properties located in the City and County of San Francisco. The rate for real estate revenues above $25 million will increase to .325% in 2020. The new annual business licensing fees will climb from $25 - $500/year to $90 - $35,000 annually.
The rates proposed for the business licensing fees (with the exception of retail and wholesale, which have a slightly lower rate) are as follows: