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San Francisco, Proposition C

Should San Francisco increase the tax exemption for certain businesses and also temporarily raise tax rates for larger companies?

This measure would decrease taxes on small to midsized 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. Passes with majority vote. 

Proposition C and Proposition D are competing measures. If both pass, the proposition that receives the most votes goes into effect.

Yes Argument

Proposition C eases the tax burden on more small businesses while ensuring that larger companies contribute to city revenues at a rate that voters previously authorized. Local shops and restaurants earning $6 million in sales operate on slim margins, and increasing the tax exemption would enable more small businesses to flourish.

No Argument

Proposition C arbitrarily raises the “zero-tax” threshold for the gross receipts tax while continuing to levy higher tax rates on larger businesses, disincentivizing growth and economic recovery. 

Key Supporters

This list represents notable organizations and individuals who have taken a position on the ballot measure or candidate, or who are funding campaigns in support or opposition. This list is not exhaustive, and may be updated.

In Support

  • Bay Area Council
  • Golden Gate Restaurant Association 
  • GrowSF
  • Hotel Council of San Francisco
  • San Francisco Chamber of Commerce

In Opposition

  • Daniel Lurie, mayor, San Francisco
  • Nicholas Parker, owner, Mercury Cafe
  • People’s Budget Coalition
  • San Francisco Tenants Union
  • SEIU 1021
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