Updates on City’s Proposed Transportation Sustainability Fee
In our last newsletter, we discussed San Francisco’s proposed city-wide Transportation Sustainability Fee (TSF). Since then, we attended a hearing at the Small Business Commission where SFTMA (the Municipal Transportation Agency) presented the proposal and clarified many outstanding questions. The new TSF divides use into 3 categories- residential, non-residential, and PDR (production, distribution, and repair). Each use has a different fee, and the non-residential rate is the highest at $18.04 a square foot. The fee is triggered when there is a change of use between the 3 categories, only when the resulting use is a higher rate than the previous one. That means if a restaurant goes into a previously residential or PDR space, they will have to pay the fee. However, if a restaurant were to go into an old clothing store, no fee would apply. Additionally, there is an exemption for any space under 5000 square feet (800 square feet for formula retail). The fee does apply to all new construction over 800 square feet. The fee will also apply on any additions that push a space over 5000 square feet. The Small Business Commission asked that SFMTA look into where the small business exemption of 5000 square feet originated and if it is sufficient in protecting small businesses. We will keep you updated as this legislation moves forward.