Proposition M would fundamentally change how the city taxes businesses, to better align with post-pandemic work norms. The city would relyless on taxing a company’s payroll for staff working here, and more on revenue that businesses earn within the city.
Under the measure, some 27-hundred small businesses would no longer be required to pay the gross receipt tax. Only businesses with five million dollars in revenue would have to pay, more than double the current cutoff.
Prop M would reduce taxes significantly for some industries, including an 80-percent taxcut for arts, entertainment and recreation businesses.
Bars and restaurants would see a 45-percent cut and health care services would get a 30-percent cut.
Prop M would increase the rate for the homelessness gross receipts tax, which would apply to more businesses.
The city controller says the measure would lose 40 million dollars in tax revenue a year for the first three years, but would generate 50 million per year after that.
A host of fees would also go away, including one for occupying sidewalks with tables.
Proposition M is supported by The Golden Gate Restaurant Association, which says it would give critical tax relief to small businesses.
The measure is opposed by Larry Marso, a local technology executive who says it would hurt mid-sized businesses.
Proposition M passes with a simple majority. If it passes with more votes than Proposition L, M will nullify L.
This election brief was reported by San Francisco Public Press reporter Audrey Brown.
Read the full analysis for Prop M here.
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