sf.citi member companies,
I hope you are doing well this afternoon.
I’m writing to you today to provide an update on expected amendments for the Board of Supervisors’ GRT legislation ahead of this afternoon’s Budget and Finance Committee meeting.
Amendments to BOS GRT Proposal
We expect that the following amendments will be proposed and adopted during today’s Budget and Finance Committee meeting, and we have included both a slide deck from the Controller’s office outlining the amendments as well as the latest draft version of the legislation below.
Amendments:
- Both Big C (homelessness) and Little C (child care) taxes are to be extended to 20 years, as opposed to 10 years as previously written.
- A 10% increase for Information sector rate effective Jan 2022, as opposed to 2021 as previously written.
- Additional rate increases phased in for Information sector to 15% in 2023 and 20% in 2024, but each could be deferred a year if City revenue targets fail to meet or exceed 2019 revenues, as opposed to no economic triggers in as previously written.
Current unchanged portions of BOS GRT Proposal:
- Information rate raised to same as Financial/Professional Services rate Jan 2021
- The Payroll tax will remain eliminated, and gross receipts tax rates will increase ~40% to cover revenue neutral to the city
Lastly, we will be joining a conversation on Monday (7/20) with the SF Chamber, Jobs, and other trade associations to discuss amendments and receive the broader business community’s feedback. We will keep you updated as we learn more.
Please send over any feedback from your team as it is available. Thank you for your continued membership.
Jen
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