§ 906E.

CREDIT OF SURPLUS BUSINESS TAX REVENUE

a.

General Rule. Any business, as defined in Section 902.2 of Part III of the Municipal Code, that does not qualify as a “small business enterprise” under the provisions of Section 905-A (Small Business Exemption), shall be allowed a credit against the payroll expense tax for any taxable year ending within a fiscal year of the City and County of San Francisco immediately following a fiscal year in which the City and County of San Francisco has surplus Business Tax revenue; provided, however, that in no event shall the tax credit allowable pursuant to this Section reduce a taxpayer’s liability for such tax to an amount less than zero. For each fiscal year, the Controller shall determine whether the City and County of San Francisco has surplus Business Tax revenue. The Controller’s determination whether the City and County of San Francisco has surplus Business Tax revenue shall be made on or before the first business day of September following the close of such fiscal year; provided, however, that for purposes of the 1997/1998 fiscal year, the Controller may make his or her determination on or before December 31, 1998. The Controller shall notify the Tax Collector of his or her determination.

b.

Amount of Credit. For purposes of this Section, the amount of the tax credit for any taxable year shall be $500; provided, however, that in no event shall the tax credit allowable pursuant to this Section reduce a taxpayer’s liability for such tax to an amount less than zero.

c.

Definitions. The following definitions shall apply to the terms used in this Section.

1.

For any fiscal year of the City and County of San Francisco, the City and County of San Francisco shall be deemed to have “surplus Business Tax revenue” if and only if the actual Business Tax revenue for such fiscal year exceeds the anticipated Business Tax revenue for such fiscal year.

2.

For any fiscal year of the City and County of San Francisco, the “actual Business Tax revenue” means the aggregate amount of tax revenue collected pursuant to Article 12-A (Payroll Expense Tax Ordinance) and Article 12-B (Business Tax Ordinance) of Part III of the San Francisco Municipal Code, less the amount of such revenue for such year allocable solely to tax rate increases in such year.

3.

For any fiscal year of the City and County of San Francisco, the “anticipated Business Tax revenue” is an amount equal to the product of (i) the actual Business Tax revenue for the fiscal year immediately preceding such fiscal year, multiplied by (ii) 107.5 percent.

d.

Effective Date. The tax credit provided by this Section shall be allowable in taxable years ending after 1997 and shall expire by operation of law on December 31, 2018. The City Attorney shall cause it to be removed from future editions of the Business and Tax Regulations Code after that date.

History

(Added by Ord. 391-98, App. 12/24/98; amended by Proposition E, App. 11/6/2012, Oper. 1/1/2014)

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