San Francisco business tax measures Props. C and D trail early

Prop C is a competing measure that was drawn up as a way to try and defeat Prop D. It proposes reducing tax rates for small and medium-sized businesses by increasing the exemption ceiling for the Gross Receipts Tax. Voters have voiced stronger opposition to Prop C than Prop D, with around 64% voting against Prop C.

Because Propositions D and C are competing measures, the one with the most votes will go into effect in the event that both are passed by voters. But so far, both measures have a long way to go in order to pass.

The city currently collects a Top Executive Pay Tax from businesses when their highest-paid employee earns more than 100 times the median salary paid to their San Francisco employees. That tax rate increases based on how much the top executive’s pay exceeds that of its San Francisco employees.

Prop D would alter the Top Executive Pay Tax by calculating the rate to include the median income of all employees, not just those in San Francisco. The measure also proposes to add more gross receipts taxes and administrative taxes on businesses that are subject to the Top Executive Pay Tax.

Some opponents of Prop D have backed Prop C, a competing measure to reduce tax rates for small and medium-sized businesses by increasing the exemption ceiling for the Gross Receipts Tax.