Tax Alert: San Francisco Gross Receipts Tax

In November 2012 San Francisco voters elected to implement a new gross receipts tax (“GRT”).  This tax is intended to encourage hiring in San Francisco by shifting from a payroll-based tax to a gross receipts-based tax.  The San Francisco Controller estimates that the GRT will increase revenue by $28.5 million per year and broaden the number of businesses subject to the tax from 7,500 to 33,000 businesses.  Industries with relatively low payroll and high gross receipts allocable to San Francisco will be affected most by the GRT.

Click here to read the full alert.