(a)
The gross receipts tax rates applicable to the business activities of accommodations; utilities; and arts, entertainment and recreation are:
(1) For tax years beginning on or after January 1, 2018 and ending on or before December 31, 2020:
0.3% (e.g., $3 per $1,000) for gross receipts between $0 and $1,000,000
0.325% (e.g., $3.25 per $1,000) for gross receipts between $1,000,001 and $2,500,000
0.325% (e.g., $3.25 per $1,000) for gross receipts between $2,500,001 and $25,000,000
0.4% (e.g., $4 per $1,000) for gross receipts over $25,000,000
(2) For the business activities of accommodations and arts, entertainment and recreation:
(A) For tax years 2021 and 2022:
0.21% (e.g., $2.10 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.228% (e.g., $2.28 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.228% (e.g., $2.28 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.56% (e.g., $5.60 per $1,000) for taxable gross receipts over $25,000,000
(B) For tax year 2023:
0.315% (e.g., $3.15 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.341% (e.g., $3.41 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.341% (e.g., $3.41 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.56% (e.g., $5.60 per $1,000) for taxable gross receipts over $25,000,000
(C) For tax years beginning on or after January 1, 2024:
0.42% (e.g., $4.20 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.455% (e.g., $4.55 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.455% (e.g., $4.55 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.56% (e.g., $5.60 per $1,000) for taxable gross receipts over $25,000,000
(3) For the business activity of utilities:
(A) For tax year 2021:
0.42% (e.g., $4.20 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.455% (e.g., $4.55 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.455% (e.g., $4.55 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.56% (e.g., $5.60 per $1,000) for taxable gross receipts over $25,000,000
(B) For tax year 2022 and, if the Controller does not certify under Section 953.10 that the 90% gross receipts threshold has been met for tax year 2023, for tax year 2023:
0.435% (e.g., $4.35 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.471% (e.g., $4.71 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.471% (e.g., $4.71 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.58% (e.g., $5.80 per $1,000) for taxable gross receipts over $25,000,000
0.45% (e.g., $4.50 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.488% (e.g., $4.88 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.488% (e.g., $4.88 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.6% (e.g., $6 per $1,000) for taxable gross receipts over $25,000,000
(D) For tax year 2024 if the Controller certifies under Section 953.10 that the 95% gross receipts threshold has been met for tax year 2024, and for tax years beginning on or after January 1, 2025:
0.465% (e.g., $4.65 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.504% (e.g., $5.04 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.504% (e.g., $5.04 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.62% (e.g., $6.20 per $1,000) for taxable gross receipts over $25,000,000
(b) Accommodations includes the activity of providing lodging or short-term accommodations for travelers, vacationers, or others; it includes business activity described in NAICS code 721.
(c) Utilities includes the activities of the generation, transmission and distribution of electric power, the distribution of natural gas, the provision and distribution of steam supply, the treatment and distribution of water supply, and the removal of sewage; it includes business activity described in NAICS code 22; it excludes establishments primarily engaged in waste management services.
(d) Arts, entertainment and recreation include the activity of operating facilities or providing services to meet cultural, entertainment or recreational interests of customers or patrons; it includes business activity described in NAICS code 71.
(e) The amount of gross receipts and from accommodations subject to the gross receipts tax shall be the total amount of gross receipts derived from or related to properties located or used within the City.
(g) The amount of gross receipts from arts, entertainment and recreation subject to the gross receipts tax shall be the total amount determined under Section 956.2.
(h) If the final judicial decision in San Francisco Superior Court Case No. CGC-19-573230 (City and County of San Francisco v. All persons interested in the matter of Proposition C on the November 6, 2018 San Francisco ballot, authorizing an increase in specified business taxes to fund specified homeless services in San Francisco, and all matters and proceedings related thereto) has the effect of invalidating the Homelessness Gross Receipts Tax in Article 28 of the Business and Tax Regulations Code, then for tax years beginning on or after January 1 of the tax year following the date on which such court decision becomes final, the phrase “over $25,000,000” in Sections 953.3(a)(2) and (3), as applicable, shall be replaced with the phrase “between $25,000,000.01 and $50,000,000” and there shall be added to each of the rate tiers in each of those Sections an additional rate tier for taxable gross receipts over $50,000,000 with a rate of 0.425% plus the applicable rate for taxable gross receipts between $25,000,000.01 and $50,000,000. These additional rate tiers shall continue in effect for 20 tax years, after which the rate tiers shall return to what the rate tiers would have been absent the increase in this Section 953.3(h).
(Added by Proposition E, App. 11/6/2012, Oper. 1/1/2014; amended by Proposition F, 11/3/2020, Eff. 12/29/2020, Oper. 1/1/2021)