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(a) These additional provisions shall apply to operators under the Tax on Transient Occupancy of Hotel Rooms (hereinafter, "Hotel Tax") (Article 7), the Tax on Occupancy of Parking Space in Parking Stations (hereinafter "Parking Tax") (Article 9), the Utility Users Tax (Article 10), and the Access Line Tax (Article 10B).
(b) Every operator who is required to collect or remit any third-party tax must possess a valid certificate of authority issued by the Tax Collector.
(c) The application for a certificate of authority shall be on a form provided by the Tax Collector and shall set forth the name under which the person transacts or intends to transact business, the location of each of the person's places of business in the City, and such other information as the Tax Collector may require. The application shall be signed by the owner if a sole proprietor, by a member or partner, in the case of an association, or by an executive officer or some person specifically authorized by the corporation to sign the application in the case of a corporation. No person shall operate a business for which a certificate of authority is required under subsection (b) unless and until the Tax Collector has issued that person a certificate of authority. The holder of a certificate of authority must promptly notify the Tax Collector of any changes to the information stated in the certificate of authority application.
(d) Except as provided in subsections (f), (g), (h), (l), and (m) below, the Tax Collector, within 45 days after the application is complete, shall issue a separate certificate of authority to the operator to collect third-party taxes from customers for each location at which the operator is required to collect such taxes. The certificate for the Parking Tax will expire on a date certain set by the Tax Collector, and the certificate for the other taxes subject to this Section 6.6-1 may expire on a date certain set by the Tax Collector. The operator must apply for renewal of the certificate, before it expires, if the operator intends to continue to engage in business in the City. Except as provided in subsections (f), (g), (h), (j), (l), and (m), the Tax Collector may issue successive, one-year renewals of an operator’s certificate for the Parking Tax, and, in the Tax Collector’s sole discretion, may issue successive certificates for periods longer than one year or perpetual certificates for the other taxes subject to this Section. Each certificate shall state the location of the place of business to which it applies and shall be prominently displayed at such location in plain view of all customers. Certificates of authority may not be assigned or transferred. The operator shall immediately surrender to the Tax Collector the certificate for that location upon the operator’s cessation of business at that location or upon the sale or transfer of the business.
(e) The holder of a certificate of authority to collect the Parking Tax shall remain presumptively liable for the collection of Parking Taxes at the location named in the certificate, and for the reporting and remittance of such taxes to the Tax Collector, unless and until the holder of the certificate both:
(1) notifies the Tax Collector in writing that the holder has ceased to conduct a parking business at such location; and
(2) surrenders the certificate for that location to the Tax Collector.
(f) (1) The Tax Collector may refuse to issue the certificate where, within the 45-day period referred to in subsection (d) above, the Tax Collector determines that the operator, or any signatory to the application, or any person holding a 10% or greater legal or beneficial interest in said operator (“10% owner”) is not in compliance with any provision of the Business and Tax Regulations Code, including but not limited to any failure to timely collect, report, pay, or remit any tax imposed by this Code, or where any such person is not in compliance with any provision of Sections 1215 through 1223, inclusive, of Article 17 of the Police Code.
(2) Solely for purposes of determining under this Section 6.6-1 whether any such operator, signatory, or 10% owner is not in compliance with the provisions described in subsection (f)(1), the Tax Collector may disregard any corporation or association owned or controlled, directly or indirectly, by any such operator, signatory, or 10% owner and consider such corporation or association’s operations and liabilities as conducted by or as owned by any one or more of such corporation or association’s officers, directors, partners, members, or owners. For purposes of this Section, (A) the term “owned” means ownership of 50% or more of the outstanding ownership interests in such corporation or association, and (B) the term “controlled” includes any kind of control, whether direct or indirect, whether legally enforceable, and however exercisable or exercised over such corporation or association. A presumption of control arises if the operator, signatory, or 10% owner is (or was) an officer, director, partner, or member of such corporation or association.
(g) iIf 1
if any person subject to this Section 6.6-1 violates any provision of the Business and Tax Regulations Code, or a rule or regulation promulgated by the Tax Collector, including but not limited to any failure to timely collect, report, pay, or remit any tax imposed by this Code, failure to maintain accurate registration information, failure to sign any return or pay any tax when due, failure to timely respond to any request for information, order for records, or subpoena, or failure to comply with the requirements of Article 22 of the Business and Tax Regulations Code or any provision of Sections 1215 through 1223, inclusive, of Article 17 of the Police Code, the Tax Collector may, after serving the person with written notice of the Tax Collector’s determination in the manner provided in Section 6.11-2 and an opportunity to be heard pursuant to the notice and review provisions of Section 6.13-1 et seq., refuse to issue that person a new certificate of authority or may revoke or suspend that person’s certificate of authority. The Tax Collector may refuse to issue that person a new certificate of authority or to withdraw the suspension of an existing certificate until the person, signatory to the application for the certificate revoked or suspended, signatory to the application for a new certificate or withdrawal of the suspension, and all 10% owners have complied with the provisions of the Business and Tax Regulations Code and corrected the original violation to the satisfaction of the Tax Collector. For any person applying for or holding a certificate of authority to collect Parking Taxes, the Tax Collector shall promptly notify the Chief of Police in writing that it has revoked a person’s certificate of authority, refused to issue a new certificate of authority, suspended an existing certificate of authority, or determined that the person is not in compliance with the Business and Tax Regulations Code. The Tax Collector shall in writing request that the Chief of Police refuse to issue a commercial parking permit to the person or suspend or revoke the person’s existing commercial parking permit and immediately close the business, pursuant to Sec. 1215.3(b) of the Police Code.
(h) (1) Before any certificate of authority shall be issued to any applicant to engage in the business of renting parking space in a parking station in this City the applicant shall file with the Tax Collector a bond naming the City as exclusive beneficiary at all times the applicant engages in such business. The applicant shall maintain the bond in the following amounts for as long as the business continues:
Annual gross receipts for parking station | Bond amount |
Annual gross receipts for parking station | Bond amount |
Less than $100,000.00 | $20,000 |
$100,000.00 to $250,000.00 | $50,000 |
$250,000.01 to $500,000.00 | $100,000 |
$500,000.01 to $750,000.00 | $150,000 |
$750,000.01 to $1,000,000.00 | $200,000 |
$1,000,000.01 to $1,250,000.00 | $250,000 |
$1,250,000.01 to $1,500,000.00 |
$300,000 |
$1,500,000.01 to $1,750,000.00 |
$350,000 |
$1,750,000.01 to $2,000,000.00 |
$400,000 |
$2,000,000.01 to $2,250,000.00 |
$450,000 |
$2,250,000.01 to $2,500,000.00 |
$500,000 |
$2,500,000.01 to $2,750,000.00 |
$550,000 |
$2,750,000.01 to $3,000,000.00 |
$600,000 |
$3,000,000.01 to $3,250,000.00 |
$650,000 |
$3,250,000.01 to $3,500,000.00 |
$700,000 |
$3,500,000.01 to $3,750,000.00 |
$750,000 |
$3,750,000.01 to $4,000,000.00 |
$800,000 |
$4,000,000.01 and greater |
$800,000 |
(2) This bond requirement does not apply to an applicant that is a governmental entity.
(3) The Tax Collector may, in his or her discretion, independently establish the annual gross receipts for a parking station and set the bond amount pursuant to the schedule above, based on that determination. If, at the end of any calendar year, the gross receipts for a parking station have increased such that a larger bond amount would be required under the above schedule, the operator shall obtain a new bond in the increased amount by the following April 1. If at the end of any calendar year the gross receipts for the parking station have decreased, the operator may apply to the Tax Collector for a reduction of the bond amount.
(i) Upon application by the operator, the Tax Collector may, in the Tax Collector’s discretion, set the bond amount for a parking station at the following levels, provided the operator meets the following qualifications: (1) the operator has maintained a valid certificate of authority, including a bond for all locations, for the three years immediately preceding the date of the application; (2) the Tax Collector has not issued a deficiency determination against the operator for any business location for the three years immediately preceding the date of the application; and, further, (3) the Tax Collector determines that the reduced bond amount is in the best interest of the City. The reduced bond amount is applicable during the calendar year that it is approved. The Tax Collector may, in the Tax Collector’s discretion, approve renewal of the bond at the lower amount from year to year. If, after approving an application for a reduced bond amount, the Tax Collector issues a deficiency determination against the operator for any business location, or the operator fails to obtain a Certificate of Authority for any business location, the approval may be rescinded and the higher bond amount provided under subsection (h) may be required.
Annual gross receipts for qualified parking station | Bond amount |
Annual gross receipts for qualified parking station | Bond amount |
Less than $100,000.00 | $10,000 |
$100,000.00 to $250,000.00 | $25,000 |
$250,000.01 to $500,000.00 | $50,000 |
$500,000.01 to $750,000.00 | $75,000 |
$750,000.01 to $1,000,000.00 | $100,000 |
$1,000,000.01 to $1,250,000.00 | $125,000 |
$1,250,000.01 to $1,500,000.00 |
$150,000 |
$1,500,000.01 to $1,750,000.00 |
$175,000 |
$1,750,000.01 to $2,000,000.00 |
$200,000 |
$2,000,000.01 to $2,250,000.00 |
$225,000 |
$2,250,000.01 to $2,500,000.00 |
$250,000 |
$2,500,000.01 to $2,750,000.00 |
$275,000 |
$2,750,000.01 to $3,000,000.00 |
$300,000 |
$3,000,000.01 to $3,250,000.00 |
$325,000 |
$3,250,000.01 to $3,500,000.00 |
$350,000 |
$3,500,000.01 to $3,750,000.00 |
$375,000 |
$3,750,000.01 to $4,000,000.00 |
$400,000 |
$4,000,000.01 and greater |
$400,000 |
(j) Such bond shall be executed by the applicant as principal, and by a corporation or association which is licensed by the Insurance Commissioner of this State to transact the business of fidelity and surety insurance, as surety. The applicant shall keep the bond in full force and effect for the duration of the certificate of authority and all renewals thereof issued to such applicant. If the bond provides that the term thereof shall be continuous until cancelled, the applicant shall provide the Tax Collector with certification from the surety of the renewal or continuation of the bond:
(1) when applying for renewal of an existing certificate of authority;
(2) when requesting the withdrawal of a suspension of an existing certificate of authority;
(3) when applying for a reduced bond amount pursuant to subsection (i); or
(4) upon written request of the Tax Collector.
(k) The bond shall contain conditions that require the applicant to comply fully with all the provisions of the Business and Tax Regulations Code concerning the collection of third-party taxes from occupants of parking stations and the remittance of such taxes to the Tax Collector. The bond shall be payable to the City in the amount of all unpaid Parking Taxes on amounts of taxable rents collected by the applicant, together with all administrative collection costs, interest, penalties, and other costs and charges applicable thereto; provided, however, that the aggregate liability of the surety for any and all claims which may arise under such bond shall in no event exceed the face amount of such bond regardless of the amount due and owing to the City. The City may bring an action upon the bond for the recovery of any unpaid Parking Taxes, administrative collection costs, interest, penalties, and other costs and charges at any time prior to the expiration of the period of limitations applicable to the collection of such unpaid taxes by the Tax Collector.
(l) When there is a deficiency determination or jeopardy determination against an operator for third-party taxes, the Tax Collector shall issue the deficiency determination or jeopardy determination against the operator and the operator's surety. The liability of the surety shall not exceed the face value of the bond(s) in effect during the period for which the deficiency is assessed. The Tax Collector shall provide notice of such deficiency determination or jeopardy determination to the operator and the bond surety. Either an operator or a surety or both may file a petition for redetermination. An operator's petition for redetermination shall be construed by the Tax Collector as a petition on behalf of both the operator and the surety. The surety may request a hearing before the Tax Collector pursuant to Section 6.13-2. The taxpayer and surety hearings may be consolidated at the discretion of the Tax Collector. Upon the finality of such determination or decision on petition for redetermination, the operator and the surety shall be liable to the Tax Collector in the amount of the determination or decision on petition for redetermination. The surety's liability shall not exceed the face value of the bond(s) in effect during the period for which the deficiency is assessed. The surety shall be subject to the same requirements as the operator with regard to payment of the tax liability and exhaustion of administrative remedies prior to seeking judicial relief. The Tax Collector may exercise all remedies against the surety that are available to the Tax Collector as to an operator or any other person determined to be liable for a tax.
(m) Before any certificate of authority shall be issued to any applicant to engage in the business of renting parking space in a parking station in this City, the applicant shall comply with Article 22. The applicant shall reimburse the Tax Collector's costs to inspect the parking station to confirm it complies with Article 22.
(Added by Ord. 18-98, App. 1/16/98; amended by Ord. 8-01, File No. 002018, App. 1/26/2001; Ord. 61-01, File No. 002197, App. 4/20/2001; Ord. 177-01, File No. 010826, App. 8/17/2001; Ord. 26-04, File No. 031990, App. 2/19/2004; Ord. 291-10, File No. 101099, App. 11/18/2010; Ord. 5-13
, File No. 121064, App. 1/24/2013, Eff. 2/23/2013; Ord. 206-13
, File No. 130784, App. 10/11/2013, Eff. 11/10/2013; Ord. 271-13, File No. 131031, App. 11/27/2013, Eff. 12/27/2013, Oper. 1/1/2014; Ord. 152-21, File No. 210828, App. 9/29/2021, Eff. 10/30/2021)
CODIFICATION NOTE
(a) (1) Every operator receiving payment of charges from a customer shall collect the amount of the third-party tax from the customer. All amounts of third-party tax so collected shall be considered to be a special fund in trust for the City. For purposes of this Section 6.7-1, a person who otherwise qualifies as an operator under Section 6.2-13 shall not, by reason of the fact that the person is exempt from the tax, be exempted from the other obligations of an operator, including without limitation the obligation to collect and remit to the City all third-party taxes collected from non-exempt customers. An exemption from a third-party tax is enjoyed by the customer, not by the operator responsible for collecting and remitting such taxes. The operator may not exclude from taxation charges claimed to be exempt unless the operator has records of each transaction, which demonstrate:
(A) the basis for the claim of exemption, and
(B) that an amount was not in fact collected from the exempt customer as a tax.
(2) Where a customer is not the end user of a good or service subject to such tax, the customer shall be deemed an operator. The existence of such deemed operator shall not relieve any other operator of obligations under the Business and Tax Regulations Code, including without limitation the obligation to collect and remit the tax to the City. The liability of such deemed operator and any other operator for the tax, including applicable interest and penalties accrued through the date of payment, shall be joint and several; provided, the City shall be limited to only one satisfaction thereof.
(b) Third-party taxes shall be collected, to the extent practicable, at the same time as and along with the collection of charges made in accordance with the regular billing practice of the operator. If the amount paid by a customer is less than the full amount of the charges and tax which has accrued for the billing period, a proportionate share of both the charges and the tax shall be deemed to have been paid.
(c) Where a customer receives more than one billing, one or more being for different periods than another, the duty to collect shall arise separately for each billing period. In all cases of transactions upon credit or deferred payment, the payment of tax to the Tax Collector may be deferred in accordance therewith, and the operator shall be liable therefor at the time and to the extent that such credits are paid or deferred payments are made in accordance with the rate of tax owing on the amount thereof.
(d) Any third-party tax imposed upon customers shall be deemed a debt owed by the customer to the City. Any such tax required to be collected from customers which has not been remitted to the Tax Collector shall be deemed a debt owed to the City by the person required to collect and remit such tax to the City.
(e) The Tax Collector shall have the power to adopt rules and regulations prescribing methods and schedules for the collection and payment of third-party taxes and such methods and schedules shall provide that the fractional part of 1 cent shall be disregarded unless it amounts to one-half of 1 cent or more, in which case the amount (determined without regard to the fractional part of 1 cent) shall be increased by 1 cent.
(f) The Tax Collector may, in the exercise of his or her discretion, require an operator under this Section to maintain trust accounts for deposit of third-party taxes collected from customers. The Tax Collector may direct an operator regarding how such trust accounts shall be created and maintained, and may prescribe the terms of such accounts. An operator's refusal to comply with the Tax Collector's direction regarding a trust account shall be grounds for revocation of a certificate of authority and/or of any license or permit to do business in San Francisco.
(g) When third-party taxes are not paid when due, or when there is any deficiency determination or jeopardy determination against an operator for third-party taxes, the Tax Collector may collect said liabilities, including interest and penalties accrued through the date of payment, from any person or persons the Tax Collector determines was responsible for performing the acts of collecting, accounting for, and remitting third-party taxes to the City and failed to do so, or who had the power to control the financial decision-making process by which the operator allocates funds to creditors in preference to the operator's obligation to remit third-party taxes to the City. When the person or persons responsible for the acts of collecting, accounting for, and remitting third-party taxes to the City cannot otherwise be determined, the Tax Collector may presume the President, Chief Executive Officer, and/or Chief Financial Officer of a corporation or any managing partner or member of an association to be a person responsible for performing such acts. The Tax Collector is authorized to name all such persons potentially responsible for performing such acts in a notice of deficiency determination or jeopardy determination and, in such case, the Tax Collector shall identify the person or persons responsible for such acts in the final decision. The final decision shall be based on the information available to the Tax Collector or based on the above presumption. The liability of such persons shall be joint and several with each other and with the operator, and shall be established in the manner provided for under this Article for other determinations.
(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; Ord. 152-21, File No. 210828, App. 9/29/2021, Eff. 10/30/2021)
(Added by Ord. 18-98, App. 1/16/98; amended by Ord. 91-99, File No. 990301, App. 4/30/99; Ord. 26-04, File No. 031990, App. 2/19/2004; Ord. 291-10, File No. 101099, App. 11/18/2010; repealed by Ord. 152-21, File No. 210828, App. 9/29/2021, Eff. 10/30/2021)
(1) The City, except for the Vacancy Tax (Article 29);
(2) The State of California, or any county, municipal corporation, district, or other political subdivision of the State, except where any constitutional or statutory immunity from taxation is waived or is not applicable;
(3) The United States, or any of its agencies or subdivisions, except where any constitutional or statutory immunity from taxation is waived or is not applicable; or
(4) Any person exempted from the particular tax by the Constitution or statutes of the United States or the Constitution or statutes of the State of California.
(b) The foregoing exemption from taxation does not relieve an exempt party from its duty to collect, report, and remit third-party taxes.
(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; Ord. 206-13
, File No. 130784, App. 10/11/2013, Eff. 11/10/2013; 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; 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)
The credits, exemptions, and differences in tax treatment 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 of this Business and Tax Regulations Code, in laws applicable to fees administered pursuant to this 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 authorize such credits, exemptions, and differences in tax treatment. If a credit, exemption, or difference in tax treatment 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, exemption, or difference in tax treatment. Amounts owed as a result of the invalidation of a credit, exemption, or difference in tax treatment that are paid within three years after the decision of the court becomes final shall not be subject to interest or penalties.
(Added 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; Proposition M, 11/5/2024, Eff. 12/20/2024)
(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 30 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) or Section 2804.9 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(g) 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, a Homelessness Gross Receipts Tax return, and 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, regardless of whether such person qualifies for the small business exemption from the Gross Receipts Tax. A person or combined group that qualifies for the small business exemption in Section 2106 of Article 21 shall be exempt from filing an Early Care and Education Commercial Rents Tax return, except that 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 Early Care and Education Commercial Rents Tax. This subsection (c)(2) shall not apply to persons or combined groups subject to taxes on administrative office business activities in Section 953.8 of Article 12-A-1, Sections 2804(d) or 2804.9 of Article 28, or Section 3303(g) of Article 33.
(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) or Section 2804.9 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(g) 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) or Section 2804.9 of Article 28), Cannabis Business Tax, or Overpaid Executive Gross Receipts Tax (including the overpaid executive administrative office tax imposed under Section 3303(g) 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) 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 and timely requested an extension under Section 6.9-4 of this Article 6 to file that return, the person or combined group’s Gross Receipts Tax liability (including any liability for the tax on administrative office business activities) for the preceding tax year for purposes of this subsection (c)(3)(B)(ii) shall be deemed to be the amount of any payment required under Section 6.9-4 as a condition of such extension. If the person or combined group did not file a return for the preceding tax year and did not request an extension under Section 6.9-4 to file that return, 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 subsection (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) or Section 2804.9 of Article 28), Cannabis Business Tax, and Overpaid Executive Gross Receipts Tax (including the overpaid executive administrative office tax imposed under Section 3303(g) 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 and timely requested an extension under Section 6.9-4 of this Article 6 to file that return, the person or combined group’s applicable tax liability for the preceding tax year for purposes of this subsection (c)(3)(C)(ii) shall be deemed to be the amount of any payment required under Section 6.9-4 as a condition of such extension. If the person or combined group did not file a return for the preceding tax year and did not request an extension under Section 6.9-4 to file that return, the person or combined group shall be deemed to have filed a return showing no liability for purposes of this subsection (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, or the extended deadline in Section 6.9-4, 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.
(1) For registration years ending on or before June 30, 2025 and the 2025-2026 registration year, 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.
(2) For registration years beginning on or after April 1, 2026, 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 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 preceding the registration year commencing April 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 Commercial 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. 152-21, File No. 210828, App. 9/29/2021, Eff. 10/30/2021; amended by Ord. 160-22, File No. 220540, App. 7/21/2022, Eff. 8/21/2022; Ord. 188-22, File No. 220756, App. 8/4/2022, Eff. 9/4/2022; Ord. 51-24, File No. 240036, App. 3/22/2024, Eff. 4/22/2024, Retro. 1/1/2024; Proposition M, 11/5/2024, Eff. 12/20/2024)
(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.
(Added by Ord. 18-98, App. 1/16/98; amended by Ord. 9-01, File No. 002019, App. 1/26/2001; 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. 222-14
, File No. 140798, App. 11/7/2014, Eff. 12/7/2014; Ord. 10-18, File No. 171133, 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. 277-19, App. 11/27/2019, Eff. 12/28/2019, Oper. 1/1/2020; 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)
(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. 271-13, File No. 131031, App. 11/27/2013, Eff. 12/27/2013, Oper. 1/1/2014; Ord. 222-14
, File No. 140798, App. 11/7/2014, Eff. 12/7/2014; Ord. 152-15
, File No. 150625, App. 8/6/2015, Eff. 9/5/2015; Ord. 26-17, File No. 161264, App. 2/10/2017, Eff. 3/12/2017; Ord. 10-18, File No. 171133, 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; Proposition F, 11/3/2020, Eff. 12/29/2020, Oper. 1/1/2021; 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)
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