Except as otherwise provided under this Article, the City imposes and every person engaging in business within the City shall pay an annual gross receipts tax measured by the person’s gross receipts from all taxable business activities attributable to the City. A person’s liability for the gross receipts tax shall be calculated according to Sections 953.1 through 953.7.
The gross receipts tax is a privilege tax imposed upon persons engaging in business within the City for the privilege of engaging in a business or occupation in the City. The gross receipts tax is imposed for general governmental purposes. Proceeds from the tax shall be deposited in the City’s general fund and may be expended for any purposes of the City.
The voters intend by adopting this measure to authorize application of the gross receipts tax in the broadest manner consistent with the provisions of this Article and the requirements of the California Constitution, the United States Constitution, and any other applicable provision of federal and state law.
The gross receipts tax imposed under this Article is in addition to the payroll expense tax imposed under Article 12-A. Persons not otherwise exempt from the gross receipts tax or payroll expense tax shall pay both taxes. Persons exempt from either the gross receipts tax or payroll expense tax, but not both, shall pay the tax from which they are not exempt.
Except for subsection (d) of this Section, the tax on Administrative Office Business Activities imposed by Section 953.8 is intended as a complementary tax to the gross receipts tax, and shall be considered a gross receipts tax for purposes of this Article.
For a five year period beginning in 2015, the Treasurer, Controller, and Chief Economist shall jointly prepare an annual report to the Mayor and Board of Supervisors on the implementation of the measure. The report shall include projections of collections of the gross receipts tax, compare these projections to those anticipated in preparation of the measure, and outline impacts of the measure on San Francisco’s economy and business community. The report may recommend policy, administrative, or technical changes for the consideration of the Mayor and Board of Supervisors that further the goals established in the measure.
(Added by Proposition E, App. 11/6/2012, Oper. 1/1/2014)