San Francisco Propositions C and D Trailing

But critics said it threatened to drive away big companies, whose tax revenue is critical to the city’s economic recovery in the wake of the coronavirus pandemic.

Proposition C was created to defeat the Overpaid CEO Act by offering an alternative. Rather than increasing taxes on large corporations, Proposition C would decrease taxes on small to mid-sized businesses by raising the threshold for a tax exemption from businesses with $5 million in gross receipts to $7.5 million.

This proposal would also increase the scheduled Top Executive Pay Tax rate for the year 2027 but freeze any increase in the following years.

Supporters of Proposition C, which included the Bay Area Council, GrowSF and the city’s Chamber of Commerce, said their measure would ease tax burdens on smaller businesses. They also pointed out that Proposition D would undo portions of Proposition M, which voters passed in November 2024. That measure lowered some taxes on large businesses after the pandemic, when several left San Francisco, to encourage more big corporations to stay in place or come to the city.

The initial returns marked a victory for Mayor Daniel Lurie, who came out against both measures, saying they were designed to confuse voters.

In other races, early returns showed San Franciscans overwhelmingly backing Proposition A, which would issue a $535 million bond to upgrade earthquake safety and emergency response facilities across the city.

Proposition B, which would change term limits in San Francisco so that no one may serve more than two four-year terms on the Board of Supervisors or as mayor, had about 56% backing in early returns, with 44% opposing.

Current law limits individuals to two consecutive terms, allowing them to run again after leaving office for four years.

Those supporting the measure said it would make elections more competitive, incentivize new ideas and promote different leaders from the community by requiring elected officials to step aside after eight years in office. The measure had widespread support on the current Board of Supervisors, with endorsements from Supervisors Bilal Mahmood, Alan Wong, Matt Dorsey, Jackie Fielder and Myrna Melgar.

But critics of the idea stressed that experience matters, especially when it comes to government and politics. They also said elections already offer the opportunity for new candidates to run and voters have the power to reject an incumbent.

Opponents included current Supervisors Rafael Mandelman and Chyanne Chen, as well as former San Francisco Mayor Willie Brown and former Gov. Jerry Brown.

The issue of whether elected officials should face term limits has percolated in Democratic circles since the death of Sen. Dianne Feinstein. An effort to explore term limits failed to make its way through the California Democratic Party earlier this year.