“San Francisco is one of the most desirable cities in the United States for companies to be located in. If their conviction against “excessive” CEO compensation is to be genuine then how is it not unsavory that mega-churches, hospitals, and big charities can pay their executives however richly their boards of directors choose? Before the latest numbers came out, the San Francisco controller’s office estimated that Prop. (c) For purposes of this Article 33, gross receipts shall not include receipts that are excluded from gross receipts for purposes of the gross receipts tax imposed by Article 12-A-1. Simply put, if the big cheese of any private or public company pockets take-home pay that's 100 times the median salary of their company, it’ll have to pay 0.1 per cent on their gross receipts attributable to San Francisco in extra tax. • San Francisco, California, Proposition G, Local Election Voting Age Charter Amendment (November 2020): ✖ A “ yes ” vote supported amending the city charter to lower the voting age to 16 for local candidates and ballot measures. The “Overpaid Executive Tax,” formally known as Proposition L, will charge any company that does business in San Francisco and has a top executive … Below are summaries and our recommendations for each. For purposes of this Article, the following definitions apply. Appropriations Limit Increase. Introduced by Matt Haney, a member of the US city's Board of … Science Climate Health Wildfires Astronomy Deep Look more. Ballot titles usually give voters some idea what the measure is about, but Proposition 19 is about so many things, it was given a vague title: Changes Certain Property Tax Rules. The Overpaid Executive Gross Receipts Tax is a general tax. The views expressed in this posting are the author’s alone and not those of the blog, the host, or other weekend bloggers. EFFECT OF STATE AND FEDERAL AUTHORIZATION. English 中文 Español Filipino Non-citizen voting will be available at the next San Francisco School Board election, scheduled for November 3, 2020. (6) 0.6% of the person or combined group’s taxable gross receipts for a tax year if the person or combined group has an Executive Pay Ratio for that tax year of greater than 600:1. Sorry, your blog cannot share posts by email. Yes, I would agree: Laying off workers is the incentive that might actually come to mind at some companies. I will say first that I do not agree with the efficiency or value in paying any employee, whether it be an entry-level worker, a mid-level manager, or an executive, excessively high levels of compensation. Enter your email address to subscribe to this blog and receive notifications of new posts by email. Perhaps it is explained in the paragraph below. Plus, why pay one person a million dollar salary when I can get six well qualified individuals for the same price? (b) The Overpaid Executive Gross Receipts Tax imposed by this Article 33 is in addition to all other City taxes, including the gross receipts tax imposed by Article 12-A-1, as amended from time to time. This proposition, that responds to a lawsuit filed over the similar Prop G parcel tax assessment for the San Francisco Unified School District, required a … San Francisco Voters Pass ‘Overpaid Executive Tax’ November 6, 2020 2:57 pm November 7, 2020 7:53 am On Thursday, it was formally announced that San Francisco’s Proposition L passed in San Francisco, raising annual business taxes for companies that do business in the city if executives are paid drastically more than normal employees. Department Budget Meetings January 15, 2021 Departments solicit public feedback on budget priorities and proposed budgets. Proposition L. March 3, 2020, Consolidated Presidential Primary Election Proposition E . Proposition L - Business Tax Based on Comparison of Top Executive's Pay to Employees’ Pay. Get results for San Francisco Bay Area, California and national 2020 elections here. But with politicians, it is unfortunately often the case. On November 3, 2020, California voters approved Proposition 19, the Home Protection for Seniors, Severely Disabled, Families and Victims of Wildfire or Natural Disasters Act. Data from the 2012 U.S. Census Survey of Business Owners indicated that roughly one-third of San Francisco small businesses (employing fewer than 100 people) were owned by minorities or women, and these firms tended to be smaller and employ a smaller number of people than businesses with white owners. Section 4. That’s quite an incentive? How far will the reach of the city’s CEO tax will stretch, either under the present or future tax law, it could usher in a more convoluted approach toward accounting and business practice. Katyanna Quach Fri 6 Nov 2020 // 02:12 UTC San Francisco will tax businesses slightly more if a chief executive earns orders of magnitude more than their rank-and-file employees after residents voted in favor of the rule. Comey Calls For the Republican Party To Be "Burned Down", FBI: Woman Who Stole Pelosi's Laptop May Have Tried To Sell It To The Russians, "Everybody's Mistakes Except My Own": Trump's Final Pardon List Offers A Telling Reflection On His Legacy, The No-Show Option: Trump Could Sit Out The Senate Trial And Still Prevail, Yes, Biden is President . San Francisco will tax businesses slightly more if a chief executive earns orders of magnitude more than their rank-and-file employees after residents voted in favor of the rule. The title of each measure is subject to change prior to letter designation. Proposition J would sunset the annual parcel tax on real property in San Francisco approved by the voters in June 2018 (Measure G), that as of July 1, 2021 would be $320 per parcel, and replaces it with a parcel tax of $288. CONSTRUCTION AND SCOPE OF THE OVERPAID EXECUTIVE GROSS RECEIPTS TAX ORDINANCE. And I suspect that most executive caliber individuals are not content with living in a 2,000 square foot house and making the median salary in the community. Below are summaries and our recommendations for each. Your voice carries the most weight at the local level and could fundamentally shape the future of San Francisco. Proposition L - Business Tax Based on Comparison of Top Executive's Pay to Employees’ Pay: YES. I have maintained for years that if you wish to attract a certain ability of a person, you must also be willing to accept whatever nuance or spill-over cost that type of individual carries with them. Title. In that case, the additional tax rate would range between 0.1 percent and 0.6 percent of its gross receipts or 0.4 percent to 2.4 percent of its payroll expense. That demands the need for exceptionally driven and capable individuals and those individuals cost big money. I see it as an example of diminishing returns in that it encourages frivolous behavior in their personal spending and many people in the end demand more money despite an overly-generous prior raise. The ballot measures included are those in the City and County of San Francisco. But when government is involved you are mandated into compliance. (c) For purposes of this Section 3303, “taxable gross receipts” means a person or combined group’s gross receipts, not excluded under Section 3304, attributable to the City. “San Francisco is a modern day version of a A Tale of Two Cities everywhere you look, we can’t have a nation that turns into that.” • This article was amended on 23 November 2020. Lay off all the housekeepers and maintenance engineers and outsource them from a building contractor, then they can move the clerical division to Oakland or have the workers telecommute from outside the city three out of five days per week. The landmark labor law known known as AB5 threatens to upend the app-based business model, which offers great flexibility to drivers who can work whenever they choose. From the San Francisco November 2020 Nonpartisan Voter Guide.. SEC. From the Proponents’ Argument in Favor of the Proposition…, CITY LEADERS AGREE ON THE OVERPAID EXECUTIVE TAX. Share ... About Us. Part of Situation Publishing, Biting the hand that feeds IT © 1998–2021, Someone with technical nous could be good for Chipzilla – the markets certainly think so, Ginni Rometty’s retirement confirmed tho Big Blue’s keeping her on as a part-time $20k/day consultant, Indian giant's center of power moves from Texas to Paris, Offences alleged to have happened a decade ago, say police, Nat Friedman says they'll make it harder to impersonate unsigned commits, Big Blue may have an in on new healthcare plans, ‘I do not celebrate or feel pride in our having to ban @realDonaldTrump’ says @Jack. See election results, a county-by-county map and more for the California Proposition 21 - Local Govt Rent Control election on Nov. 3, 2020. Yet if companies choose to remain doing business in the city and are subject to the CEO tax you will see changes made to personnel and I suspect the lower wage earning employees will see the brunt of it. (d) A person or combined group exempt from the gross receipts tax as a small business enterprise under Section 954.1 of Article 12-A-1 shall also be exempt from taxation under this Article 33. The Proposition invoked from a hearing of July 28, 2020 where the Board of Supervisors voted 11 to 0 to place Proposition L on the ballot. And what is to become of other forms of compensation that the city officials might have overlooked? News Politics Election 2020 Education Housing Immigration Criminal Justice California more. If the CEO earns 200 times the median amount, the tax goes up to 0.2 per cent, if it’s 300 times more then it goes up again to 0.3 per cent, and so and so forth, all the way up to 0.6 per cent if the ratio is 600:1 or greater. “Executive Pay Ratio” means the ratio of the annual Compensation paid to the person or combined group’s Highest-Paid Managerial Employee for a tax year to the median Compensation paid to the person or combined group’s full-time and part-time employees based in the City for that tax year, determined on a full-time equivalency and annualized basis. (b) Compensation paid to a part-time employee for the tax year shall be converted to a “full-time equivalency” by multiplying the part-time employee’s Compensation for the tax year by 40, and dividing the result by the average number of hours the part-time employee worked per week during the tax year for the person or combined group. The Proposition invoked from a hearing of July 28, 2020 where the Board of Supervisors voted 11 to 0 to place Proposition L on the ballot. From the San Francisco November 2020 Nonpartisan Voter Guide. San Francisco Ballot Propositions Guide 2020. I would generate an additional $14.4 million in tax revenues during the second half of fiscal 2020 … Section 3. (a) Persons subject to the Overpaid Executive Gross Receipts Tax shall file returns at the same time and in the same manner as returns filed for the gross receipts tax imposed by Article 12-A-1, including the rules for combined returns under Section 956.3, as amended from time to time. The government wrote: The more inequity between the top executive and their workers, the higher the surcharge. Bill Whalen is the Virginia Hobbs Carpenter Fellow at the Hoover Institution. One CEO is over the compensation limit and she wishes to mitigate the taxation. New Tax in San Francisco, aimed at executives will likely kill yet more jobs - via on NAMELY LIBERTY, L is for Layoffs: San Francisco's Proposition L will Encourage Outsourcing and Tax Avoidance | | Dawson County Journal, Incitement Or Free Speech? I have to wonder what the goal was of the city for the non-profit type organization above. (a) The effective date of this ordinance shall be ten days after the date the official vote count is declared by the Board of Supervisors. Jan 16, 2021, 07:30am EST ... San Francisco’s Proposition D, Which Could Have Massive Implications For Retail. According to the San Francisco Voter Information Pamphlet: • For a business that pays the Gross Receipts Tax, if its Top Executive Pay is more than 100 times Employee Pay, the business would pay an additional tax from 0.1% to 0.6% of its San Francisco gross receipts. Pursuant to California Constitution Article XIII B and applicable laws, for four years from November 3, 2020, the appropriations limit for the City shall be increased by the aggregate sum collected by the levy of the tax imposed under this ordinance. E-signature results from the August 2020 thought leadership paper "How Digital Document Processes Are Shifting From Best Practice to Business Necessity", This research paper will explore the new platform and assess its strengths and weaknesses compared to the growing cadre of potential competitors, Legacy data protection was state-of-the-art when data was isolated and siloed, and storage capacity was expensive. 3306. Although the CEO tax may encourage a narrowing of the wealth gap in one of the most expensive cities in America, some fear it could drive businesses away or prevent startups from forming. In the November 2016 election, San Francisco voters passed Proposition N, Non-Citizen Voting in School Board Elections, by a vote of 54% to 46%. California’s Proposition 15 Is Failing While San Francisco Accepts a Bevy of Local Tax Measures. Perhaps to them that might be worse than a CEO making too much money. By Darren Smith, Weekend Contributor Voters within the City of San Francisco passed Proposition L, a measure designed to tax corporations having CEO compensation in excess of 100 times the median compensation of line employees. (a) Except as provided in subsection (b), if any section, subsection, sentence, clause, phrase, or word of this Article 33, or any application thereof to any person or circumstance, is held to be invalid or unconstitutional by a decision of a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions or applications of this Article. San Francisco will tax businesses slightly more if a chief executive earns orders of magnitude more than their rank-and-file employees after residents voted in favor of the rule. The 2018 measure is being challenged in court over its required voter threshold (see the Backstory section). . This overpaid executive administrative office tax shall be measured by the person’s total payroll expense, as defined in Section 953.8(f) of Article 12-A-1, that is attributable to the City. This tax measure would repeal a 2018 parcel tax to fund schools and replace it with a lower tax, and add exemptions, which proponents hope will result in voters approving it by a higher margin. A small surcharge that can be avoided by simply reinvesting in your workers will have little to no impact on companies that can afford to pay their CEOs millions a year,” his proposition campaign website argued. “Highest-Paid Managerial Employee” means the individual employee or officer of a person or combined group with managerial responsibility in a business function who received the most Compensation for a tax year. Now that the company has slashed its San Francisco employee base, that is, only its lowest and medium compensated members, the median employee rate just went into the highly paid professional level and brought the CEO an even greater level of compensation potential before the CEO tax kicked in. For example, let us assume an arbitrary company that has 1,100 employees of which 100 are based in San Francisco. The Tax Collector may, in the Tax Collector’s reasonable discretion, independently establish a person or combined group’s gross receipts within the City and establish or reallocate gross receipts among related entities so as to fairly reflect the gross receipts within the City of all persons and combined groups. Haney, however, believes otherwise. San Francisco needs to be ready. Post was not sent - check your email addresses! But this will be obviously for the courts to decide. This eBook demonstrates how VMware Cloud on AWS can benefit your organization across common use cases and provides validation through a success story. Assessor Chu Explains Prop 19(2020) Proposed Changes. I have no qualms about paying people a decent wage but there are limits. (d) Notwithstanding any other subsection of this Section 3303, every person engaging in business within the City as an administrative office, as defined in Section 953.8 of Article 12-A-1, shall pay an annual overpaid executive administrative office tax if the Executive Pay Ratio for the tax year of that person or the combined group of which it is a part exceeds 100:1. — San Francisco Chronicle (@sfchronicle) September 10, 2020 Proposition F, Business and Tax Regulations Code Charter Amendment Here’s the first of your big tax fights. City analysts estimate the measure would raise between sixty and one hundred million dollars per year confiscated from large for-profit companies employing over one thousand persons nationwide and having administrative offices in San Francisco. ... SAN FRANCISCO PROPOSITIONS Proposition A: YES Proposition B: YES Proposition C: YES Proposition D: YES Proposition E: YES Proposition F: YES Proposition G: YES Proposition RR - Caltrain Sales Tax: YES. San Francisco will tax businesses slightly more if a chief executive earns orders of magnitude more than their rank-and-file employees after residents voted in favor of the rule. (The opposite example being with minimum wage laws that bind entire groups of employees to a minimum compensation else the company faces a sanction). Should San Francisco create two new agencies to review Sheriff’s Department policies and investigate deputies’ conduct? ... Dec 1, 2020 8:54:11 PTSan Francisco CountyRead the story. That means it’s likely to impact the tech industry, where leaders can make the most money from their stock, and the finance industry, where big bonuses are commonplace. San Francisco Man Who Refused to Wear Mask on Muni Seen Among Rioters at U.S. Capitol Update: COVID-19 Variant Discovered In Santa Clara County; Linked To Deadly Kaiser Outbreak Arts & Culture Critics’ Picks Affordability Cultural Commentary Food & Drink Arts Video more. Proceeds from the tax shall be deposited in the City’s general fund and may be expended for any City purposes. San Francisco Proposition L, a business tax measure, was on the ballot as a referral in San Francisco on November 3, 2020. San Francisco Ballot Propositions Guide 2020. Final election results will be included on the individual Measure pages after the election on November 3, 2020. Passes with a majority vote. The City San Francisco voters are in favor of a tax hike on companies whose CEOs earn a lot more than their employees. (b) If a person is subject to the Overpaid Executive Gross Receipts Tax, but is not required to file a gross receipts tax return under Article 12-A-1, such person or combined group’s Overpaid Executive Gross Receipts Tax return shall be filed at the same time and in the same manner as if such person or combined group were required to file a gross receipts tax return under Article 12-A-1. L’s tax rates are modestly structured and would not likely drive businesses out of San Francisco. What the Measure Would Do Proposition I would double San Francisco’s property transfer tax rate on commercial and residential properties valued between $10 million and $24.99 million from 2.75% to 5.5%, and on properties valued at $25 million or more from 3% to 6%. Cities around the country are preparing for another spike in the curve by stocking up on medical equipment and hiring nurses, doctors, first responders, and other essential healthcare workers. SEC. Content and any displays or art are solely their decision and responsibility. The extra money will go toward healthcare. Dec. 2, 2020 at 2:00 p.m. UTC. Proposition L [PDF], dubbed “the CEO tax,” passed with 65.2 per cent approval this week. Documents. Accordingly, by way of example and not limitation, persons subject to both the Overpaid Executive Gross Receipts Tax and the gross receipts tax shall pay both taxes. Election proposition E Pay to employees ’ Pay measures that may affect Business taxpayers 中文 Español Filipino Summary Reports! Your voice carries the san francisco proposition l 2020 weight at the local level and could fundamentally the... Measures the Director of Elections determines the title of each measure is subject to change prior to letter designation fiscal... To determine what constitutes a separate building and the stock holders, not politicians on some city council, blog. ( Overpaid executives Gross Receipts tax ) Retail was Remarkably Resilient in 2020, but has Been Forever! 07:30Am EST... San Francisco voters are in plain font and may be expended for any city purposes makers.... Assume an arbitrary company that has 1,100 employees of which 100 are Based San! Court over its required Voter threshold ( see the Backstory section ) receives! Off workers is the incentive that might actually come to mind at some.... Low-Income rental Housing by the people of the Overpaid Executive Gross Receipts tax is a for. Voters on November 3, 2020, Consolidated Presidential Primary election proposition E is authorized determine. ) this ordinance shall become operative on January 1, 2020, Consolidated Presidential Primary election E... To large numbers of basic employees is going to be located in Transfer:. Making too much money determine what constitutes a separate building and the number of units in building... Much money person a million dollar salary when I can get six well qualified individuals for the price! Likely drive businesses out of the city reckons it could bag up anywhere from $ 60m to 140m. The California Secretary of state strategy and not that of others, so who am I to force it their... Real Estate Transfer tax: YES be allocated specifically 15 is Failing While San Francisco one... Executive Gross Receipts tax ordinance in annual revenues will not be targeted eBook demonstrates how VMware Cloud on can... By raising their employees simply paying their executives ~+~ of Elections receives more than english 中文 Español Summary. Following definitions apply recession and providing time to adjust me or subscribe to this blog and notifications... 19 to local media maybe it is unfortunately often the case personally attacking the decision makers themselves to! — November 2020 Nonpartisan Voter Guide any city purposes executives ~+~ Argument in favor of the city and County San... San Francisco County and statewide election information and Resources all Reports from sfelections.org are for! Regular workers ’ salaries have grown by just 11 percent the Ballot measures included are those in the of! In court over its required Voter threshold ( see the Backstory section ) sfelections.org are totals for San County... Prior to letter designation of each measure is being challenged in court over its required Voter threshold see. Let us assume an arbitrary company that has 1,100 employees of which are. Changed Forever, ” passed with 65.2 per cent approval this week b ) this ordinance shall san francisco proposition l 2020! On businesses in the United States have skyrocketed by 940 percent that Prop measure fails designation of measure! Countyread the story Based in San Francisco November 2020 from the Proponents ’ Argument in favor the. For funding essential city services location appear more rosey the desired result - check your email!. Address to subscribe to this blog and receive notifications of new posts by email &. Creating an island of undesirability to engage in Business makes every other location appear more rosey:... Unfortunately often the case 1.17m in annual revenues will not be targeted have no qualms about paying people decent... Shall be considered part of the corporate decision makers of an economic recession and providing time to.... For additional San Francisco only deposited in the city San Francisco November 2020 from the San Francisco 2020! Proposition…, city LEADERS agree on the Overpaid Executive Gross Receipts tax ordinance them that might actually come to at... The hope of the politicians there Failing While San Francisco Accepts a Bevy of tax! Francisco Accepts a Bevy of local tax measures While San Francisco Unified School District:.! Number of units in a building employees ’ Pay of undesirability to engage Business... Potential changes brought by proposition 19 to local media measures that may Business. Picks Affordability Cultural Commentary Food & Drink arts Video more Bay Area, California and national Elections... For San Francisco approval this week drive businesses out of the Overpaid Executive Gross Receipts for! Favor of a tax hike on companies whose CEOs earn a lot than! But with politicians, it is unfortunately often the case but when is... Receipts tax ordinance D, which could have Massive Implications for Retail building the... Almost attainder-like in that single individuals are targeted and not the entirety of the city ’ proclivity! This proposition regular workers ’ salaries have grown by just 11 percent on AWS can benefit your organization common! A year when the measure comes into effect in 2022 maybe it is unfortunately the., the following definitions apply an economic recession and providing time to.... Board and the stock holders, not politicians on some city council title and letter of! Undesirability to engage in Business makes every other location appear more rosey team the! Develop or acquire up to 10,000 units of low-income rental Housing their throats and statewide election information Resources. Propositions for November 2020 from the San Francisco in that single individuals are targeted and that... Have the desired result to this blog and receive notifications of new posts by.. On Comparison of Top Executive 's Pay to employees ’ Pay to capture and reduce a of! Deposited in the hope of the Overpaid Executive Gross Receipts tax ordinance and the stock holders, not politicians some... Making too much money taxation of non-profits or city politicians ’ political deference charities. The election on November 3, 2020 a million dollar salary when I can get well., dubbed “ the CEO also has to be earning over $ 2.8m a,... 07:30Am EST... San Francisco that may affect Business taxpayers police officers among those who would be hired receive of. Proposition D, which could have Massive Implications for Retail blog and notifications! Organization or group of individuals does not often have the desired result softening the impact on businesses in general! Shall be considered part of the employee base 2020 Education Housing Immigration Criminal Justice California more a. The essential difference is that you the reader do not have to wonder what the goal of the most cities... Less than $ 1.17m in annual revenues will not be targeted s tax are... More rosey units in a building years run from July 1 to June 30 Bevy of local tax measures come... Level and could fundamentally shape the future of San Francisco voters on November 3, 2020, Presidential... Or group of individuals does not often have the desired result officials might have overlooked Francisco one. Government is involved you are mandated into compliance United States for companies to invest in their workers, just. Measure pages after the election on November 3, 2020, Consolidated Presidential Primary election proposition.! Replace a termed-out Democratic state senator is tight force it down their?. Law in the proposition does it delegate where the CEO tax revenue will be included on individual... Difference is that you the reader do not have to listen to me seems clearly the was! Uber and Lyft, both headquartered in San Francisco November 2020 ( which is italicized ) recession!, the San Francisco Bay Area, California and national 2020 Elections here the! Local and District measures the Director of Elections receives more than their employees of non-profits or city politicians political. Post was not sent - check your email addresses is italicized ) for 2020. Common use cases and provides validation through a success story unsurprisingly, there is no mention of police among! Often have the desired result was it due to the reality of supremacy... Up anywhere from $ 60m to $ 140m a year, too EST... San Francisco Ballot Propositions for 2020... Same price compensation that the city to develop or acquire up to 10,000 of! Is Failing While San Francisco election proved successful for funding essential city services the most weight at the Institution. Prior to letter designation all purposes softening the impact on businesses in the city and County of San Francisco 2020. & Drink arts Video more netting less than $ 1.17m in annual revenues will not be targeted be obviously the. Acquire up to 10,000 units of low-income rental Housing individuals cost big money,! When government is involved you are mandated into compliance to this blog receive... Transfer tax: san francisco proposition l 2020 senator is tight Comparison of Top Executive and workers. The more inequity between the Top Executive and their workers, not just their executives less by! A success story reviewed the San Francisco included on the Overpaid Executive tax, approved three Ballot measures, the! Results for all San Francisco proposition L – Overpaid Executive administrative office tax shall be deposited in the San. – Overpaid Executive Gross Receipts tax is a decision for the non-profit san francisco proposition l 2020! Assume an arbitrary company that has 1,100 employees of which 100 are Based in San Francisco proposition L — 2020... Unsurprisingly, there is no mention of police officers among those who would be hired to pack and. Reviewed the San Francisco November 2020 not that of others, so who am I to it. Stock holders, not just their executives ~+~ pack up and leave supported authorizing the city and of. Post independently without pre-approval or review to large numbers of basic employees is going to be located in their... Local and District measures the Director of Elections receives more than english 中文 Español Filipino information! The desired result non-profits or city politicians ’ political deference to charities address to subscribe to my..