News
New business tax will bring $300 million for San Fran homeless services
Next Post

Press {{ keys }} + D to make this page bookmarked.

Close

New business tax will bring $300 million for San Fran homeless services

2:50 am   November 8, 2018
78
mercurynews.com/PrtSc

A plan – known as Prop C – to tackle San Francisco’s homeless crisis, that turned into a national “Battle of the Big Tech Titans” passed with 60% of votes and brought an end to what had become one of the Bay Area’s biggest battles in the November elections.

The debate over this proposition divided city leaders and even sparked social media showdowns between some of the most prominent tech CEO’s, including Salesforces’s Marc Benioff, Twitter’s Jack Dorsey, and Zynga’s Mark Pincus.

“Prop C will raise an additional $250 million to $300 million in corporate taxes annually—the largest tax increase in city history—for a fund dedicated to solving the homeless crisis in San Francisco,” Forbes reports.

The new plan will impose a tax on the gross receipts of companies with more than $50 million in annual revenue(around 400 companies) and use that money to expand homeless services. It will help collect $300 million a year, nearly doubling what the city now spends on homeless services.

About 3.1% of all companies headquartered in San Francisco will be taxed at rates of 0.175% to 0.69% on gross receipts. Businesses with more than $1 billion in gross receipts would pay another 1.4% in payroll expense taxes; the tax applies only to business generated in San Francisco. 

The approval of the plan has been very timely as the United Nations found that the Bay Area’s “cruel and inhuman” conditions for homeless residents violate a number of human rights, according to a report.

The United Nations Special Rapporteur Leilani Farha revealed her findings before the UN General Assembly, after previously reporting that homeless residents in San Francisco and Oakland had been denied “access to water, sanitation and health services, and other basic necessities.”

Author: USA Really