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The credits and exemptions set forth in Articles 6, 7, 8, 9, 10, 10B, 11, 12, 12-A-1, 12-C, 21, 28, 29, 29A
, 30, 32, and 33, in laws applicable to fees administered pursuant to Article 6, and in laws applicable to assessments levied pursuant to the Property and Business Improvement District Law of 1994 (California Streets and Highways Code sections 36600 et seq.) or Article 15 of this Code, are provided on the assumption that the City has the power to offer such credits and exemptions. If a credit or exemption is invalidated by a court of competent jurisdiction, the taxpayer must pay any additional amount that the taxpayer would have owed but for such invalid credit or exemption. Amounts owed as a result of the invalidation of a credit or exemption that are paid within three years after the decision of the court becomes final shall not be subject to interest or penalties.
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Publisher's Note: This section has been AMENDED by new legislation (Ord. 51-24
, approved 3/22/2024, effective 4/22/2024, retro. 1/1/2024). The text of the amendment will be incorporated under the new section number when the amending legislation is operative.
(a) Returns Generally. Except as otherwise provided in this Business and Tax Regulations Code, on or before the due date, or in the event of cessation of business within 15 days of such cessation, each taxpayer shall file a return for the subject period on a form provided by the Tax Collector, regardless of whether there is a tax liability owing. A taxpayer who has not received a return form from the Tax Collector is responsible for obtaining such form and filing a return, and the failure of the Tax Collector to furnish the taxpayer with a return shall not relieve the taxpayer of any payment or filing obligation. Returns shall show the amount of tax paid, collected, or otherwise due for the subject period and such other information as the Tax Collector may require. Each taxpayer shall transmit the return, together with the remittance of the tax due, to the Tax Collector at the Tax Collector’s Office on or before the due date specified in this Section 6.9-1. Filing a return that the Tax Collector determines to be incomplete in any material respect may be deemed failure to file a return in violation of this Section 6.9-1(a).
(b) Special Rules for Third-Party Taxes and the Stadium Operator Admission Tax.
(1) Returns shall show the amount of tax required to be collected for the subject period, separately, for each location at which the operator conducts business, and such other information as the Tax Collector requires. The Tax Collector may require returns to show the total number of transactions upon which tax was required to be collected and the amount of tax due on each such transaction, and for each location at which the operator conducts business. The Tax Collector may inspect, examine, and copy records for each such location separately, and may issue deficiency and jeopardy determinations pursuant to this Article 6 for each such location separately, or in combination with one or more other locations at which the operator conducts business.
(2) When a return is filed without full remittance of the amount reported to be due, the amount remaining unpaid, together with any nonpayment penalties, is immediately due and payable and may be collected by the Tax Collector forthwith.
(c) Gross Receipts Tax, Early Care and Education Commercial Rents Tax, Homelessness Gross Receipts Tax, Cannabis Business Tax, and Overpaid Executive Gross Receipts Tax.
(1) Annual Due Date. Except for any extensions granted under Section 6.9-4 or as otherwise provided in this Business and Tax Regulations Code, returns and payments of the Gross Receipts Tax (Article 12-A-1) (including the tax on administrative office business activities imposed under Section 953.8 of Article 12-A-1), the Early Care and Education Commercial Rents Tax (Article 21), the Homelessness Gross Receipts Tax (Article 28) (including the homelessness administrative office tax imposed under Section 2804(d) of Article 28), the Cannabis Business Tax (Article 30), and the Overpaid Executive Gross Receipts Tax (Article 33) (including the overpaid executive administrative office tax imposed under Section 3303(d) of Article 33) are due and payable, and shall be delinquent if not submitted and paid to the Tax Collector, on or before the last day of February of the succeeding year.
(2) Small Business Exemption. A person or combined group that qualifies for the small business exemption in Section 954.1 of Article 12-A-1
shall be exempt from filing a Gross Receipts Tax return, an Early Care and Education Commercial Rents Tax return, and, except for a person or combined group subject to the overpaid executive administrative office tax imposed under Section 3303(d) of Article 33, an Overpaid Executive Gross Receipts Tax return. Notwithstanding the preceding sentence, any person taking the Payroll Expense Tax Exclusion Credit in Section 960 of Article 12-A-1
must file a Gross Receipts Tax return, and any person taking the credit for child care facilities in Section 2106.1 of Article 21 must file an Early Care and Education Commercial Rents Tax return, regardless of whether such person qualifies for the small business exemption from the Gross Receipts Tax.
(3) Estimated Tax Payments. Except as provided in Section 6.9-1(c)(3)(D) with respect to estimated tax payments of the Gross Receipts Tax, every person or combined group liable for payment of the Gross Receipts Tax (Article 12-A-1) (including the tax on administrative office business activities imposed under Section 953.8 of Article 12-A-1), the Early Care and Education Commercial Rents Tax (Article 21), the Homelessness Gross Receipts Tax (Article 28) (including the homelessness administrative office tax imposed under Section 2804(d) of Article 28), the Cannabis Business Tax (Article 30), or the Overpaid Executive Gross Receipts Tax (Article 33) (including the overpaid executive administrative office tax imposed under Section 3303(d) of Article 33) shall make three estimated tax payments, in addition to the annual payments in Section 6.9-1(c)(1), as follows:
(A) Due Dates. The first, second, and third estimated tax payments for a tax year shall be due and payable, and shall be delinquent if not paid on or before, April 30, July 31, and October 31, respectively, of that tax year. Estimated tax payments shall be a credit against the person or combined group’s total annual liability, as applicable, for the Gross Receipts Tax (including the tax on administrative office business activities imposed under Section 953.8 of Article 12-A-1), Early Care and Education Commercial Rents Tax, Homelessness Gross Receipts Tax (including the homelessness administrative office tax imposed under Section 2804(d) of Article 28), Cannabis Business Tax, or Overpaid Executive Gross Receipts Tax (including the overpaid executive administrative office tax imposed under Section 3303(d) of Article 33), for the tax year in which such estimated tax payments are due.
(B) Gross Receipts Tax Estimated Tax Payments. A person or combined group’s estimated tax payments of Gross Receipts Tax, including the tax on administrative office business activities imposed under Section 953.8 of Article 12-A-1, shall each equal the lesser of:
(i) 25% of the Gross Receipts Tax liability (including any liability for the tax on administrative office business activities imposed under Section 953.8 of Article 12-A-1) shown on the person or combined group’s return for the tax year (or, if no return is filed, 25% of the person or combined group’s actual Gross Receipts Tax liability for the tax year); or
(ii) 25% of the Gross Receipts Tax liability (including any liability for the tax on administrative office business activities imposed under Section 953.8 of Article 12-A-1) as determined by applying the applicable Gross Receipts Tax rates and small business exemption in Section 954.1 of Article 12-A-1 for the current tax year to the taxable gross receipts shown on the person or combined group’s return for the preceding tax year (or, if subject to the tax on administrative office business activities imposed under Section 953.8 of Article 12-A-1 for the preceding tax year, by applying the applicable administrative office tax rate for the current tax year to the total payroll expense attributable to the City shown on the person or combined group’s return for the preceding tax year). If the person or combined group did not file a return for the preceding tax year, the person or combined group shall owe no estimated tax payments of Gross Receipts Taxes (or estimated tax payments of the tax on administrative office business activities imposed under Section 953.8 of Article 12-A-1) for the current tax year. For purposes of this Section 6.9-1(c)(3)(B)(ii), “taxable gross receipts” means a person or combined group’s gross receipts, not excluded under Section 954 of Article 12-A-1, attributable to the City.
(C) Estimated Tax Payments for Early Care and Education Commercial Rents Tax, Homelessness Gross Receipts Tax, Cannabis Business Tax, and Overpaid Executive Gross Receipts Tax. A person or combined group’s estimated tax payments of the Early Care and Education Commercial Rents Tax, Homelessness Gross Receipts Tax (including the homelessness administrative office tax imposed under Section 2804(d) of Article 28), Cannabis Business Tax, and Overpaid Executive Gross Receipts Tax (including the overpaid executive administrative office tax imposed under Section 3303(d) of Article 33), shall each equal the lesser of:
(i) 25% of the applicable tax liability shown on the person or combined group’s return for the tax year (or, if no return is filed, 25% of the person or combined group’s actual tax liability for the tax year); or
(ii) 25% of the applicable tax liability shown on the person or combined group’s return for the preceding tax year. If the person or combined group did not file a return for the preceding tax year, the person or combined group shall be deemed to have filed a return showing no liability for purposes of this Section 6.9-1(c)(3)(C)(ii), and no estimated tax payments of that tax shall be due for the current tax year.
(D) Lessor of Residential Real Estate Exemption. Notwithstanding any other provision in this Section 6.9-1(c)(3), a lessor of residential real estate, as defined in Section 954.1 of Article 12-A-1, shall not be required to make estimated tax payments under this Section 6.9-1(c)(3), but shall pay its full Gross Receipts Tax liability, Homelessness Gross Receipts Tax liability, and Overpaid Executive Gross Receipts Tax liability on or before the last day of February of the succeeding year, if the lessor’s gross receipts within the City shown on the lessor’s return for either the current tax year or the preceding tax year did not exceed the threshold in Section 954.1(b) of Article 12-A-1.
(d) Transient Occupancy Tax, Tourism Improvement District Assessment, Moscone Expansion District Assessment, and Parking Tax.
(1) Monthly Due Date. Except for any extensions granted under Section 6.9-4 or as otherwise provided in this Business and Tax Regulations Code, returns and payments of the Transient Occupancy Tax (Article 7), Tourism Improvement District Assessment (referenced in subsection (d)(2)), Moscone Expansion District Assessment (referenced in subsection (d)(3)), and Parking Tax (Article 9) shall be filed monthly and are due and payable, and shall be delinquent if not submitted and paid to the Tax Collector, for each month, on or before the last day of the following month.
(2) For purposes of this subsection (d), “Tourism Improvement District” and “Tourism Improvement District Assessment” mean the business-based improvement district and the assessment imposed under the district management plan, respectively, approved by the Board of Supervisors in Resolution No. 381-22 (File No. 220784), as such district and plan may be modified from time to time.
(3) For purposes of this subsection (d), “Moscone Expansion District” and “Moscone Expansion District Assessment” mean the business-based improvement district and the assessment imposed under the district management plan, respectively, approved by the Board of Supervisors in Resolution No. 427-13 (File No. 131128), as such district and plan may be modified from time to time.
(4) Deemed Small Operators of Parking Stations. For tax periods beginning on or after January 1, 2024, a “Deemed Small Operator” is a parking station operator that has gross revenues from Rent that do not exceed $40,000 annually attributed to rent from parking operations. Any valet parking operator required to hold a permit under Police Code Section 1216 shall not be a “Deemed Small Operator.” Notwithstanding any other provision of this Code, a Deemed Small Operator shall be relieved of certain obligations, specified in subsection (A) below, provided it meets all of the requirements of subsection (B) below, and is not disqualified for such relief under subsection (C) below.
(A) A Deemed Small Operator shall be relieved of the following obligations:
(ii) To make monthly tax remittances pursuant to Section 6.9-1(d)(1), provided that its gross revenues from rent do not exceed $40,000 annually. At any time that the gross revenues from rent exceed $40,000 annually, the operator must report and file monthly tax returns as required by Section 6.9-1(d)(1) beginning with the following month.
(B) To be eligible for relief under this Section 6.9-1(d)(4), a Deemed Small Operator must meet all of the following requirements:
(i) Register for relief using the form prescribed by the Tax Collector for that purpose, and provide the information required by the Tax Collector. The operator shall demonstrate to the satisfaction of the Tax Collector that it meets all of the requirements of this Section 6.9-1(d)(4).
(ii) Maintain documents and records of all parking transactions in a manner acceptable to the Tax Collector. Such documents and records must objectively substantiate any relief claimed under this Section 6.9-1(d)(4) and be provided to the Tax Collector upon request.
(iii) Timely file with the Tax Collector annually a Parking Tax return, regardless of the amount of tax liability shown on the return. All returns shall be filed on or before January 31 of each year.
(C) Any operator that makes a material misrepresentation in a return, fails to amend a return within seven days of a material change, or fails to comply in a timely manner with a rule or regulation promulgated by the Tax Collector shall, in addition to any other liability that may be imposed under the provisions of this Article 6, be ineligible to claim relief under this Section 6.9-1(d)(4).
(5) Short-Term Rental Hosts.
(A) For tax periods beginning on or after January 1, 2024, a Short-Term Rental Host (as defined in subsection (d)(5)(C)) shall timely file a Transient Occupancy Tax return and Tourism Improvement District Assessment return with the Tax Collector and remit Transient Occupancy Taxes and Tourism Improvement District Assessments annually in lieu of the monthly returns and remittances required under Section 6.9-1(d)(1), regardless of the amount of tax liability shown on the returns. All returns shall be filed and payments remitted on or before January 31 of each year. A Short-Term Rental Host shall not be required to obtain a certificate of authority from the Tax Collector under Section 6.6-1.
(B) Notwithstanding subsection (d)(5)(A), a Qualified Website Company (as defined in subsection (d)(5)(D)) shall collect and remit all Transient Occupancy Taxes and Tourism Improvement District Assessments, and file monthly Transient Occupancy Tax returns and Tourism Improvement District Assessment returns in the form required by the Tax Collector, on behalf of all Short-Term Rental Hosts that rent out their residences through the Qualified Website Company’s platform. Short-Term Rental Hosts that do business only through one or more Qualified Website Companies shall be relieved of their annual filing obligations under subsection (d)(5)(A). Short-Term Rental Hosts that do business both through one or more Qualified Website Companies and otherwise must file annual returns under subsection (d)(5)(A) for the portion of their tax and assessment liability not reported by a Qualified Website Company.
(C) For purposes of this subsection (d)(5), a “Short-Term Rental Host” is a person who rents out any portion of their residence, the rents from which are subject to the Transient Occupancy Tax (Article 7).
(D) For purposes of this subsection (d)(5), a “Qualified Website Company” is a person that agrees to act as the agent of all Short-Term Rental Hosts that rent their residences through the person’s platform for purposes of collecting and remitting the Transient Occupancy Tax and filing Transient Occupancy Tax returns. To qualify as a Qualified Website Company the person must meet both of the following requirements, and may not begin collecting, remitting, and reporting as a Qualified Website Company until the Tax Collector has confirmed that these requirements have been met:
(i) Apply for and receive a certificate of authority under Section 6.6-1; and
(ii) Submit a declaration to the Tax Collector, in the form required by the Tax Collector, that attests that the person has complied with the requirements of this subsection (d)(5)(D) and will comply with the requirements of subsection (d)(5)(B) either retroactively to January 1, 2024, or from any later date specified in the declaration, but in no case no later than the first day of the second month following the month in which the person submits the declaration.
(e) Utility Users Tax and Access Line Tax; Monthly Due Date. Except for any extensions granted under Section 6.9-4 or as otherwise provided in this Business and Tax Regulations Code, returns and payments of the Utility Users Tax (Article 10) and the Access Line Tax (Article 10B) shall be filed monthly and are due and payable, and shall be delinquent if not submitted and paid to the Tax Collector, for each month, on or before the last day of the following month.
(f) Stadium Operator Admission Tax; Due Dates. Except for any extensions granted under Section 6.9-4 or as otherwise provided in this Business and Tax Regulations Code, returns and payments of the Stadium Operator Admission Tax (Article 11) shall be filed as provided in Section 804 of Article 11, and are due and payable, and shall be delinquent if not submitted and paid to the Tax Collector, by the date provided in Section 804.
(g) Business Registration Certificate; Annual Due Date. Except for any extensions granted under Section 6.9-4 or as otherwise provided in this Business and Tax Regulations Code, returns and payments of the Business Registration Fee (Article 12) shall be filed annually and are due and payable, and shall be delinquent if not submitted and paid to the Tax Collector, on or before the last day of May preceding the registration year commencing July 1 of that year.
(h) Sugary Drinks Distributor Tax; Quarterly Due Date. Except for any extensions granted under Section 6.9-4 or as otherwise provided in this Business and Tax Regulations Code, returns and payments of the Sugary Drinks Distributor Tax (Article 8) shall be filed quarterly and are due and payable, and shall be delinquent if not submitted and paid to the Tax Collector, for each calendar quarter, on or before the last day of the month immediately following each calendar quarter.
(i) Traffic Congestion Mitigation Tax; Monthly Due Date. Except for any extensions granted under Section 6.9-4 or as otherwise provided in this Business and Tax Regulations Code, returns and payments of the Traffic Congestion Mitigation Tax (Article 32) shall be filed monthly and are due and payable, and shall be delinquent if not submitted and paid to the Tax Collector, for each month, on or before the last day of the following month.
(j) Vacancy Tax.
(1) Annual Due Date. Except as otherwise provided in this Business and Tax Regulations Code, returns and payments of the Vacancy Tax (Article 29) shall be filed annually and are due and payable, and shall be delinquent if not submitted and paid to the Tax Collector, on or before the last day of February of the succeeding year.
(2) Additional Filing Requirements. In addition to the filing requirements in Section 6.9-1(j)(1), anyone that is an owner, lessee, or sublessee of Taxable Commercial Space, as that term is defined in Article 29 of the Business and Tax Regulations Code, at any time during a calendar year shall file a Vacancy Tax return, in the form and manner prescribed by the Tax Collector, on or before the last day of February of the succeeding year.
(3) Notwithstanding Section 6.22-1 of this Article 6, the Tax Collector may make public the following information regarding each Taxable Commercial Space, as that term is defined in Section 2903 of Article 29, whether obtained from the returns filed under Sections 6.9-1(j)(1) or (2) or otherwise:
(A) The name of the person or persons required to file a return for any tax year with respect to the Taxable Commercial Space, and whether each such person filed a return;
(B) The name of the person or persons required to pay the Vacancy Tax for any tax year with respect to the Taxable Commercial Space;
(C) The address and block and lot number of the Taxable Commercial Space;
(D) Whether the Taxable Commer- cial Space was kept Vacant during a tax year for purposes of Article 29 of the Business and Tax Regulations Code; and
(E) The rate of the Vacancy Tax applicable to the Taxable Commercial Space for a tax year.
(k) Empty Homes Tax.
(1) Annual Due Date. Except as otherwise provided in this Business and Tax Regulations Code, returns and payments of the Empty Homes Tax (Article 29A) shall be filed annually and are due and payable, and shall be delinquent if not submitted and paid to the Tax Collector, on or before the last day of April of the succeeding year, or in the event the Residential Unit is sold or transferred within 45 days after such sale or transfer.
(2) Additional Filing Requirements. In addition to the filing requirements in subsection (k)(1), each person that owns a Residential Unit at any time during a tax year shall file a return for that tax year, unless that person is exempt from the Empty Homes Tax with respect to that Residential Unit under any one of sub- sections (a) through (d) of Section 2955 of Article 29A of this Code or is covered under the Homeowners’ Exemption Period for that Residential Unit for the entire year. The return shall be filed by the last day of April of the succeeding year, or in the event the Residential Unit is sold or transferred within 45 days after such sale or transfer. For purposes of this subsection (k)(2), the terms “Homeowners’ Exemption Period” and “Residential Unit” have the same meaning as those terms are defined in Section 2952 of Article 29A of this Code.
(Added by Ord. 18-98, App. 1/16/98; amended by Ord. 26-04, File No. 031990, App. 2/19/2004; Ord. 291-10, File No. 101099, App. 11/18/2010; Proposition E, App. 11/6/2012, Oper. 1/1/2014; Ord. 206-13, File No. 130784, App. 10/11/2013, Eff. 11/10/2013, Oper. 1/1/2014; Ord. 26-17, File No. 161264, App. 2/10/2017, Eff. 3/12/2017; Ord. 12-18, File No. 171155, App. 2/1/2018, Eff. 3/4/2018; Ord. 235-18, File No. 180753, App. 10/12/2018, Eff. 11/12/2018, Oper. 1/1/2019; Ord. 69-19, File No. 181110, App. 4/19/2019, Eff. 5/20/2019, Retro. 1/1/2019; Ord. 277-19, App. 11/27/2019, Eff. 12/28/2019, Oper. 1/1/2020; Ord. 207-20, File No. 200759, App. 10/9/2020, Eff. 11/9/2020; Ord. 88-21, File No. 210161, App. 7/2/2021, Eff. 8/2/2021; repealed by Ord. 152-21, File No. 210828, App. 9/29/2021, Eff. 10/30/2021; Ord. 224-23, File No. 230898, App. 11/3/2023, Eff. 12/4/2023)
Editor’s note:
The amendments made to this section by Ordinance 26-17 shall apply to all tax periods commencing on or after January 1, 2017, with prior law governing all tax periods commencing prior to January 1, 2017.
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