BOMA San Francisco Members:
We're well on our way to defeating two big Commercial Rent Tax measures on the June 5 ballot. We need your immediate help to get us over the finish line; June 5 is just over 3 weeks from now.
Here are links to the campaign website, Facebook page and videos that are airing strategically on cable. There are also mail pieces/window signs and a social media/internet strategy component.
Time is of the essence! We respectfully request an immediate donation from our building members. Considering the potential asset value drop, should either Prop C or D pass, this investment is minimal!
Please click here to contribute directly to The Committee for an Affordable San Francisco, No on C and D.
Other Threats on the Horizon
While Propositions C and D on the June ballot both unfairly target commercial landlords with the largest proposed tax increase in San Francisco history, other threats loom as well. Measures being considered by elected officials and others include parcel taxes, additional taxes on commercial rents, sales taxes, business revenue taxes, utility taxes, and more.
Questions? Contact John Bozeman at email@example.com.
Summary of the Two Proposed Gross Receipts Tax (GRT) Measures Targeting Commercial Real Estate
Current law requires commercial building owners to pay a blend of a payroll tax and .3% on gross receipts from leases to the City and County of San Francisco. That money goes into the City's general fund. The two new gross receipts tax measures on the June 5, 2018 ballot would impose additional taxes on commercial rent. These additional taxes would be dedicated to fund specific programs, plus unspecified general fund use. The two commercial rent taxes on the ballot are:
1. 3.5% additional GRT on leases of commercial space; 1% on warehouse space (Proposition C)
- Estimated to raise $146 million annually
- 85% funds early child care and education, 15% is for general use
- Tax would not apply to gross receipts from leases that have the following uses: industrial, arts, or non-formula retail, non-profit and small businesses
- Requires 50% + 1 voter approval to pass
- Estimated to raise $70 million annually
- Funds low/middle income housing and homeless services
- Tax would not apply to gross receipts from leases that have the following uses: PDR, retail and services, entertainment, arts and recreation, non-profit and small businesses
- Requires 67% voter approval to pass