On Tuesday, July 31 the Board of Supervisors voted to place Mayor Lee’s Gross Receipts tax proposal on the November ballot. The measure would gradually phase out the current business tax 1.5% of a business’s taxable payroll expenses and replaces over a five year period with a graduated gross receipts tax.

In combination, with the change away from a payroll tax, the law raises the business licensee based on the amount the amount a business received in gross receipts. The more the business received in gross receipts, the higher the business license fee. The fee increase would raise an estimated $28.5 million annually, $13 million of which would go towards affordable housing and the rest would be focused on infrastructure and economic development activities.

The Golden Gate Restaurant Association Board of Directors has unanimously endorsed the move towards a gross receipts tax and strongly encourages the Board of Supervisors to support the proposal.

Click here to see the proposed rate structure and fees.