Arthur J. Villasanta – Fourth Estate Contributor
San Francisco, CA, United States (4E) – The lot of homeless persons in San Francisco, California stands to improve, perhaps substantially, with the city’s voters approving the “San Francisco, California, Proposition C, Gross Receipts Tax for Homelessness Services” during the midterms on Nov. 6.
Proposition C provides that businesses in the city with over $50 million in gross receipts be taxed 0.175 to 0.69 percent to fund housing and homelessness services. The tax on big businesse is expected to bring in from $250 million and $300 million annually.
It will double the city’s spending on homelessness services. Ciity officials said the tax revenue will be allocated to mental health services, homelessness prevention, shelter beds and affordable housing.
Proposition C passed on Tuesday with 125,000 Yes votes or 59.9% of those voting. The No votes came to 83,823, or 440.1% of total votes cast.
The city explained that Proposition C is a business tax measure to fund homelessness services. It was on the ballot for San Francisco voters in San Francisco County. A yes vote was a vote in favor of authorizing the city and county of San Francisco to fund housing and homelessness services by taxing certain businesses at the following rates:
* 0.175 percent to 0.69 percent on gross receipts for businesses with over $50 million in gross annual receipts, or
* 1.5 percent of payroll expenses for certain businesses with over $1 billion in gross annual receipts and administrative offices in San Francisco.
Prior to the election, maximum business tax rates on gross receipts in San Francisco ranged from 0.16 percent to 0.65 percent. Proposition C was designed to increase these rates by an additional tax of between 0.175 percent and 0.69 percent, based on business activity type as outlined in the San Francisco Business and Tax Regulations Code.
Industries affected by the new tax and their additional tax rates:
* Retail/Wholesale Tade, Certain Services  (Section 953.1) — 0.175%
* Biotechnology, Clean Teachnology, Food Services, Information, Manufacturing, Transportation/Warehousing (Section 953.2 — 0.500%
* Accomodations, Utilities, Arts/Entertainment/Recreation (Section 953.3) — 0.425%
* Administrative/Support Services, Private Education/Health Services, Miscellaneous (Section 953.4) — 0.690%
* Construction (Section 953.5) — 0.475%
* Financial Services, Insurance, Professional/Scientific/Technical Services (Section 953.6) — 0.600%
* Estate/Rental/Leasing Services (Section 953.7) — 0.325%
* Administrative office tax rate
Certain businesses classified under Section 953.8 with administrative offices in San Francisco, at least $1 billion in gross receipts, and at least 1,000 employees nationwide would be required to pay an annual homelessness administrative office tax (rather than a gross receipts tax) at a rate of 1.5 percent of payroll expenses.
Article – All Rights Reserved.
Provided by FeedSyndicate