The “Small Business and Economic Recovery Act” would change how San Francisco taxes businesses. It would raise the exemption threshold for some business taxes, so fewer companies have to pay them.
Right now, most businesses making up to 5 million dollars are exempt from the city’s gross receipts tax. The measure would raise that exemption to 7.5 million dollars.
It would also slightly increase a tax on companies where top executives earn more than 100 times the median worker pay.
Proposition C is backed by business groups and major employers. Supporters say it would provide relief to small businesses, it would make the tax system more predictable, and it would support the city’s economic recovery.
The city controller estimates it could lower revenue by about 30 to 40 million dollars a year.
Opponents say that would worsen the city’s budget deficit. They say that could lead to further cuts in public services.
Opponents are backing a competing measure — Prop D, or the Overpaid CEO Tax — that would impose a large tax increase on companies with extreme pay gaps between top executives and median workers.