Monday, May 14, 2012

update! SF Business Tax

You all know the City is looking at putting on the ballot a gross receipts tax in lieu of the payroll tax. Right know there are between 8000 to 9000 businesses paying the payroll tax and it generates about $400 hundred million dollars. The new tax would be revenue neutral.

It is the desire of the City to increase revenues in part by bringing in more taxes from some of those with payrolls under $250000 who are not paying the payroll tax.

Currently on the table is a proposal to levy a tax on businesses with $100000 or more in gross receipts. In the past I have sent those rates.

The problem with this is that some businesses could see their taxes go up $2000 to $3000. Keep in mind this is not most businesses but some, for example in the construction business, financial services and service stations could see these kind of increases. The key factor here is that some of these businesses have a low percentage of payroll as a percentage of cost to their business . Example a service station doing $1 million dollars of sales is paying the oil companies 85% to 90% of this

What would you think of increasing the registration fee and exempt all businesses under $1 million in gross receipts.

Here is one example

Businesses with under $100000 gross receipts would pay a $150 fee. Same as now if you have payroll and $125 more if you have no payroll

Businesses between $100000 and $250000 would pay a $250 fee. If you currently have employees the actual cost increase is $150 because you are already paying $150

Businesses between $250000 and $500000 would pay a $500 fee. Again if you have employees the actual increase is $350

Businesses between $500000 and $1 million would pay $1000. Net increase $850

Do you have other suggestions.

Would you attend a meeting with Ben Rosenfeld and Ted Egan on this.


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