BOMA | Building Owners and Managers Association of San Francisco
Advocate: An Update on Legislative, Regulatory, and Political Issues Affecting Commercial Real Estate
May 31, 2018
VOTE NO on Propositions C and D - Huge Tax Increases on Tenants
Window Signs Are Available at the BOMA San Francisco Office!

We're well on our way to defeating two big Commercial Rent Tax measures on the June 5 ballot. We need your immediate help to get us over the finish line; June 5 is 5 days from now.

Campaign Media

Here are links to the campaign website, Facebook page and videos that are airing strategically on cable. There are also mail pieces/window signs and a social media/internet strategy component.

Website: http://www.votenosftaxes.com/

Facebook: https://www.facebook.com/Votenosftaxes/

YouTube: https://www.youtube.com/channel/UCaEdMlphv6Nyz4uQM4swdxg

Our Ask

Time is of the essence! We respectfully request an immediate donation from our building members. Considering the potential asset value drop, should either Prop C or D pass, this investment is minimal! 

Vendor firms: Please donate what you can, considering this major threat to your clients. Prop C will add a new gross receipts tax of 3.5% and Prop D will add a new gross receipts tax of 1.7%. Both measures are effectively another blank check for elected officials to spend on pet projects without regard for massive projected future budget deficits. We must defeat these measures soundly.

Please click here to contribute directly to The Committee for an Affordable San Francisco, No on C and D.

Other Threats on the Horizon

While Propositions C and D on the June ballot both unfairly target commercial landlords with the largest proposed tax increase in San Francisco history, other threats loom as well. Measures being considered by elected officials and others include parcel taxes, additional taxes on commercial rents, sales taxes, business revenue taxes, utility taxes, and more.

Questions? Contact John Bozeman at johnb@boma.com.

Summary of the Two Proposed Gross Receipts Tax (GRT) Measures Targeting Commercial Real Estate

Current law requires commercial building owners to pay a blend of a payroll tax and .3% on gross receipts from leases to the City and County of San Francisco. That money goes into the City's general fund. The two new gross receipts tax measures on the June 5, 2018 ballot would impose additional taxes on commercial rent. These additional taxes would be dedicated to fund specific programs, plus unspecified general fund use. The two commercial rent taxes on the ballot are:

1. 3.5% additional GRT on leases of commercial space; 1% on warehouse space (Proposition C)

  • Estimated to raise $146 million annually
  • 85% funds early child care and education, 15% is for general use
  • Tax would not apply to gross receipts from leases that have the following uses: industrial, arts, or non-formula retail, non-profit and small businesses
  • Requires 50% + 1 voter approval to pass

2. 1.7% additional GRT on leases of commercial space (Proposition D)

  • Estimated to raise $70 million annually
  • Funds low/middle income housing and homeless services
  • Tax would not apply to gross receipts from leases that have the following uses: PDR, retail and services, entertainment, arts and recreation, non-profit and small businesses
  • Requires 67% voter approval to pass
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In This Issue
BOMA SF-PAC Voter Guide for the June 5, 2018 Election
•  Please Use This Helpful Voting Guide
VOTE NO on Propositions C and D - Huge Tax Increases on Tenants
•  Window Signs Are Available at the BOMA San Francisco Office!
UPDATE: Volunteer to Support London Breed for Mayor
•  Election Day and This Weekend - Get Involved!
Benchmarking and Reporting Requirements Webinar - AB 802
•  Applies to Commercial Buildings Over 50,000 Square Feet
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ADVOCACY EVENTS
•  Energy & Environment Committee 
June 5, 2018
11:30 a.m. to 1:00 p.m.
Ferry Building, Port Commission Hearing Room, San Francisco, CA
Please click here for more information.
•  Government Affairs Policy Advisory Committee (GAPAC) Meeting
June 6, 2018
12:00 p.m. to 1:00 p.m.
235 Montgomery Street (Russ Building), 7th Floor, San Francisco, CA
Please click here for more information.
• 
Emergency Preparedness Committee (EPC)
June 12, 2018
12:00 p.m. to 1:00 p.m.
225 Bush Street, Suite 1810
Please click here for more information.
• 
Codes and Regulations Committee 
June 27, 2018
12:00 p.m. to 1:00 p.m.
201 California Street, 2nd Floor Conference Room, San Francisco, CA
Please click here for more information.
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