Tax reform can and does happen at the ballot box. Indeed, startup companies in San Francisco should soon feel the benefit of the recent passage of the city’s Proposition E.
Proposition E implements a tax on gross receipts, phasing out San Francisco’s prior payroll tax. This will be very beneficial for startup companies that have paid staff but have yet to earn much revenue.
Furthermore, given that business tax trails only property tax for bringing in dollars to the city of San Francisco, by taxing gross receipts instead of payroll, there will likely be more regularity and less fluctuation in terms of dollars flowing into city coffers.
Continue reading “San Francisco Passes Prop E To Benefit Of Startups”