Proposition M Makes Sweeping Changes To San Francisco Gross Receipts Tax

Key Takeaways:

• San Francisco voters approved Proposition M, significantly altering the city's business taxes.

• Amends the gross receipts tax by modifying the apportionment formula, raising the tax rate range and increasing the exemption threshold.

• Reduces the exemption threshold for businesses subject to the homelessness gross receipts tax.

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On November 5, 2024, the voters of San Francisco passed Proposition M with 70% support. This law, which significantly alters the city's business taxes, went into effect on January 1, 2025.

Proposition M changes San Francisco's annual business tax, which includes:

• Gross Receipts Tax

• Homelessness Gross Receipts Tax