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Treasurer José Cisneros Announces Major Progress in Business Tax Reform Implementation as Board of Supervisors Passes Key Ordinance
03/19/2025
[ Article originally appeared in https://sftreasurer.org ]
Treasurer José Cisneros announced that the Board of Supervisors passed a key ordinance, ushering in the creation of two programs to improve tax compliance and collection as part of the implementation of Proposition M (2024). “Businesses were clear that they needed a more transparent and predictable tax system — and we listened,” said Treasurer José Cisneros. “Taxes may not be fun to pay, but by quickly implementing Proposition M, we are making it easier for businesses to comply with the law.” The passage of the ordinance, allowing the Office of the Treasurer and Tax Collector to waive taxes, penalties, and interest under a Voluntary Disclosure Program and to collect fees from taxpayers to implement an Advance Written Determination Program, marks an important step in the implementation of Proposition M (2024), a voter-approved measure restructuring San Francisco’s business tax system. In addition, the Office of the Treasurer & Tax Collector released draft regulations to assist taxpayers in the interpretation of Proposition M. “San Francisco is on the path to a strong economic revival, and we are making it clear that the city is open for business,” said Mayor Daniel Lurie. “Proposition M simplifies our tax system and is an important step to encourage growth and investment in our city. With this ordinance, along with efforts like PermitSF, City Hall is fostering an environment where businesses of all sizes can thrive and contribute to the vibrant economy that benefits all our neighborhoods.” The passage of Proposition M followed years of collaboration among San Francisco leaders, including the Office of the Treasurer & Tax Collector and Controller, who engaged extensively with the business community to understand their challenges and priorities. The Office also studied best practices from other jurisdictions to develop a more efficient and transparent tax system. “Over two years ago, I requested a comprehensive study of our business tax system to ensure it was working for San Francisco’s economy,” said Board President Rafael Mandelman. “With the implementation of Proposition M, we are seeing that effort come to fruition, ensuring that businesses have the clarity they need to plan for the future while strengthening the City’s economic stability.” In late 2024, the Office of the Treasurer & Tax Collector worked with policymakers to approve legislation to eliminate annual license fees for small businesses, making it easier to operate, grow, and open a small business in San Francisco. The measure waived 49 annual license fees, providing $10 million annually in relief to San Francisco small business owners. “The voters laid out clear priorities for the city in Proposition M, requiring that we make the tax system more equitable, support our small businesses, and provide greater certainty to taxpayers in advance of their tax payments,” said Sarah Dennis Phillips, Executive Director, Office of Economic and Workforce Development. “The Treasurer’s swift implementation of fee waivers, timely release of sourcing regulations, and the launch of the Voluntary Disclosure Agreement and Advance Written Determination programs all show that San Francisco is open for business and that it is a new day for companies who want to invest and grow in San Francisco.” About the Ordinance The newly approved ordinance supports two essential programs designed to improve tax certainty and compliance, with applications available this Spring:
More on Proposition M
Learn more about Proposition M and view an implementation timeline: sftreasurer.org/PropM. Back To News |
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