Friday, July 13, 2012

Business Tax

I assume you have been following this discussion. Let me give you some updates.

The final legislation will be decided at least as of now July31. You all know that the Mayor/ Supervisor Chiu has one proposal on the table that will raise about $13 million. Supervisor Avalos has another proposal that will raise $40 million. Both increase revenues by raising fees .Supervisor Avalos has lower fees for small business and basically gets the additional money from larger companies.

The business communities mantra has been basically to support the change from payroll to gross receipts but it be revenue neutral. There does seem to be support for the $13 million increase if it is for the Housing fund. The real estate industry would support this as long as the money is not collected in the form of the transfer tax. The Mayor and Supervisor Chius proposal does not include a transfer tax.

There are now rumors that the increases that may be put forth as an alternative proposal to Supervisor Avalos proposal could raise revenue as much as $30 million.

My questions to you are:

1. Do you support the Avalos proposal? Assume for the moment that you would see no tax or fee increase with this.

2. Would you support an increase in fees with larger companies picking up about half of the increase?

3. Do you think there should be no tax or fee increase except for maybe the $13 million for the Housing Fund

4. I work with a number of small business leaders. What should we be advocating for?

It is really important that I hear from you.

Scott Hauge
CAL Insurance and Associates, Inc.
2311 Taraval Street
San Francisco, CA 94116
Phone: (415) 680-2109
Fax: (415) 680-2137
License #0A32315

1 comment:

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