San Francisco to revise payroll tax, keep tech startups in city
In an effort to keep startup technology companies from leaving San Francisco, city supervisor Mark Farrell is drafting significant changes to the current payroll tax in order to keep employee stock options from being taxed by 1.5 percent when cashed out, according to the San Francisco Examiner.
The legislation will ensure that the city is "in an economically competitive position as it relates to attracting not only technology but all our companies," said Farrell, as reported by the news source.
The changes, which have yet to be introduced, came about as a result of San Francisco-based companies such as Twitter, Zynga and Yelp expressing concern about the financial consequences of going public on the stock market.
News of the changes comes several days after city lawmakers passed a measure exempting Twitter from a payroll tax on new hires if it moves its headquarters to the Mid-Market area of the city, which is in need of revitalization, according to the Huffington Post. The exemption applies to all businesses that make the move, but Twitter - which is expected to soon expand from a few hundred to a few thousand workers - is the largest.
The legislation will ensure that the city is "in an economically competitive position as it relates to attracting not only technology but all our companies," said Farrell, as reported by the news source.
The changes, which have yet to be introduced, came about as a result of San Francisco-based companies such as Twitter, Zynga and Yelp expressing concern about the financial consequences of going public on the stock market.
News of the changes comes several days after city lawmakers passed a measure exempting Twitter from a payroll tax on new hires if it moves its headquarters to the Mid-Market area of the city, which is in need of revitalization, according to the Huffington Post. The exemption applies to all businesses that make the move, but Twitter - which is expected to soon expand from a few hundred to a few thousand workers - is the largest.
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