Payroll tax could make San Francisco businesses reconsider their locations
In February, San Francisco lawmakers introduced a bill that would create a payroll tax exemption zone in two areas of the city. That decision has a number of businesses reconsidering their locations in the city and whether San Francisco is the right choice for them, according to MarketWatch.
The current proposal will allow companies within the mid-Market and Tenderloin areas of the city to avoid payroll taxes altogether. The bill comes after the federal government approved a one-year reduction in the national payroll tax.
Payroll taxes are a contentious point for local businesses because San Francisco is the only city in California that mandates such a tax, according to the San Francisco Examiner. The current rate stands at 1.5 percent.
According to the San Francisco Chronicle, Twitter has voiced its desire to move its office outside of the city if it is not exempted from payroll taxes. Twitter chief financial officer Ali Rowghani told MarketWatch that, if waived, his company would consider signing a renewal term that would keep the social media giant in San Francisco for up to 10 years.
The current proposal will allow companies within the mid-Market and Tenderloin areas of the city to avoid payroll taxes altogether. The bill comes after the federal government approved a one-year reduction in the national payroll tax.
Payroll taxes are a contentious point for local businesses because San Francisco is the only city in California that mandates such a tax, according to the San Francisco Examiner. The current rate stands at 1.5 percent.
According to the San Francisco Chronicle, Twitter has voiced its desire to move its office outside of the city if it is not exempted from payroll taxes. Twitter chief financial officer Ali Rowghani told MarketWatch that, if waived, his company would consider signing a renewal term that would keep the social media giant in San Francisco for up to 10 years.
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