For our reporter Rachel Dornhelm’s live tweets from the Board of Supervisors, click here.
Update 3:13 p.m. KQED’s Rachel Dornhelm has tweeted that the legislation passed 8 to 3, with only Supervisors Avalos, Mirkarimi, and Campos voting no.
[Business and Tax Regulations Code – Payroll Expense Tax Exclusion in Central Market Street and Tenderloin Area] 1101558. Sponsors: Mayor; Kim, Chiu, Farrell, Cohen, Wiener and Chu
Ordinance amending Article 12-A of the Business and Tax Regulations Code by adding Section 906.3 to establish a payroll expense tax exclusion for businesses located in the Central Market Street and Tenderloin Area and requiring persons with an annual payroll expense of over $1,000,000 to enter into a Community Benefits Agreement with the Office of Economic and Welfare Development. (Fiscal Impact; Economic Impact.)
Question: Shall this Ordinance be PASSED ON FIRST READING?
(The legislation) would allow exempt companies from paying the payroll tax on new hires for six years; they also would get a pass on paying the tax on compensation tied to stock options…
A chief sticking point to be resolved is the geographic boundary. At least part of the Tenderloin area now included in the legislation may be eliminated, with Mid-Market remaining the main focus.
Whatever the boundary winds up being, it is going to include the headquarters of Twitter, which was looking to leave the city before Mayor Ed Lee proposed the tax break, which has a dual goal of revitalizing the semi-decrepit mid-Market area. (For a history of the area, check out the web site Up From the Deep.)