§ 954.

EXEMPTIONS AND EXCLUSIONS

a.

Except as provided in subsection (b) of this Section, an organization that is exempt from income taxation by Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code or Subchapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, as amended, as qualified by Sections 502, 503, 504 and 508 of the Internal Revenue Code of 1986, as amended, shall be exempt from taxation under this Article, only so long as those exemptions continue to exist under state or federal law.

b.

An organization otherwise exempt from income taxation under subsection (a) that is directly engaged within the City in an unrelated trade or business within the meaning of Section 513(a) of the Internal Revenue Code of 1986, as amended, and has, from its own operations, unrelated business taxable income within the meaning of Section 512(a)(1) of the Internal Revenue Code of 1986, as amended, shall pay the gross receipts tax on its gross receipts from its unrelated trade or business activities that are attributable to the City. If it is impracticable, unreasonable or improper to allocate such organization’s gross receipts as aforesaid either because of the particular nature of the organization’s unrelated trade or business or for any other reason, then the amount of gross receipts reasonably attributable to the organization’s unrelated trade or business in the City shall be determined on the basis of all of the relevant facts and circumstances of the particular case, in accordance with any rulings or regulations issued or promulgated by the Tax Collector for this purpose.

c.

Gross receipts as defined in Section 952.3 shall not include receipts from business activities if, and only so long as and to the extent that, the City is prohibited from taxing such receipts under the Constitution or laws of the United States or under the Constitution or laws of the State of California.

d.

Rent Controlled Buildings Exclusion. A person subject to the tax may exclude from gross receipts in any tax year 50 percent of the total amount received from the rental of real property to tenants in occupancy at any location in the City, which is subject to limits on rent increases pursuant to the Residential Rent Stabilization and Arbitration Ordinance, San Francisco Administrative Code, Chapter 37, Section 37.1 et seq.

e.

Exclusion of Certain Sales of Real Property. Gross receipts as defined in Section 952.3 shall not include receipts from any sales of real property with respect to which the Real Property Transfer Tax imposed by Article 12-C has been paid to the City.

f.

For only so long as and to the extent that the City is prohibited from imposing the tax under this Article, the following persons shall be exempt from the gross receipts tax:

1.

Banks and financial corporations exempt from local taxation under Article XIII, Section 27 of the California Constitution and Revenue and Taxation Code Section 23182;

2.

Insurance companies exempt from local taxation under Article XIII, Section 28 of the California Constitution;

3.

Persons engaging in business as a for-hire motor carrier of property under Revenue and Taxation Code Section 7233;

4.

Persons engaging in intercity transportation as a household goods carrier under Public Utilities Code Section 5327;

5.

Charter-party carriers operating limousines that are neither domiciled nor maintain a business office within the City under Public Utilities Code Section 5371.4; and

6.

Any person upon whom the City is prohibited under the Constitution or laws of the State of California from imposing the gross receipts tax.

g.

To the extent that any taxpayer has paid a substantially similar tax to any other taxing jurisdiction on any gross receipts attributed to the City and taxed under this Article, the tax paid to such taxing jurisdiction shall be credited against the tax due under this Article; in no event shall this credit reduce the taxpayer’s liability to less than zero.

History

(Added by Proposition E, App. 11/6/2012, Oper. 1/1/2014)

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