“Business Registration Certificate” means a “registration certificate,” as defined in Section 852.2 of Article 12 of the Business and Tax Regulations Code, as may be amended from time to time.
“Business Registration Fee” means the tax imposed under Article 12 of the Business and Tax Regulations Code, as may be amended from time to time.
“City Departments” means the departments and agencies that issue any permit, license, or Business Registration Certificate, including but not limited to the Planning Department, Department of Building Inspection, Fire Department, Department of Public Works, Department of Public Health, Police Department, Entertainment Commission, Office of Cannabis, and Office of the Treasurer and Tax Collector.
“Commercial Use” means any non-residential use, other than a use at a business location operated from a home or other residential location or for a short-term residential rental use, as that term is defined in Section 41A.4 of Chapter 41A of the Administrative Code, as may be amended from time to time.
“Gross Receipts Tax Return” means the return reporting taxes imposed by Article 12-A-1 of the Business and Tax Regulations Code and filed in accordance with Article 6 of that Code.
“License Fees” means all license fees payable to the City, including but not limited to fees payable to the City under Sections 76.1 and 76.2 of this Article 2, relating to the operation of a business at a location that is for Commercial Use, but not including fees for licenses under Chapter 94A of the Administrative Code, as may be amended from time to time.
“Permit Fees” means the fees payable to the City upon application for and issuance of any permit, including but not limited to permits subject to Article 1 of the Business and Tax Regulations Code, for the establishment, modification, and/or operation of a Commercial Use, but not including fees for permits under Chapter 94A of the Administrative Code, as may be amended from time to time.
“Qualified Business” means either a Qualified New Business or a Qualified Business With New Location.
“Qualified Business With New Location” means a person that (1) commences business at a new business location that is for Commercial Use, as reported to the Tax Collector, after commencing business within the City at a different location, and (2) reported $5,000,000 or less in annual San Francisco Gross Receipts or estimated San Francisco Gross Receipts on its most recently filed Gross Receipts Tax Return, application for a Business Registration Certificate, or renewal of a Business Registration Certificate.
“Qualified New Business” means a person that (1) applies for an initial Business Registration Certificate in accordance with Section 856 of Article 12 of the Business and Tax Regulations Code, (2) has $5,000,000 or less in estimated San Francisco Gross Receipts for the calendar year in which the person commences business within the City, and (3) has a registered business location that is for Commercial Use as reported on the person’s application for a Business Registration Certificate or any update to that registration information provided to the Tax Collector. A “Qualified New Business” shall not include a continuing business that applies for a new Business Registration Certificate as a result of a change in its ownership or the form of how the business is held.
“San Francisco Gross Receipts” has the same meaning as used in Section 855 of Article 12 of the Business and Tax Regulations Code, as may be amended from time-to-time.
(b) Waiver for Qualified New Businesses. All Permit Fees, initial License Fees, and the initial Business Registration Fee shall be waived for each Qualified New Business as follows:
(1) Permit Fees and initial License Fees shall be waived, provided the Qualified New Business has filed the application for the permit or initial license on or after July 1, 2023 and during the one-year period beginning on the date the Qualified New Business commenced business within the City, and the Qualified New Business has a Business Registration Certificate at the time it files the application for the permit or initial license. The waiver in this Section 76.3(b)(1) shall not apply to (A) any fees for the renewal of a license or (B) any fees collected by the City on behalf of any federal, state, or other local government agency.
(2) The initial Business Registration Fee shall be waived, provided the Qualified New Business has filed the application for an initial Business Registration Certificate in accordance with Section 856 of Article 12 of the Business and Tax Regulations Code, and that application was filed on or after July 1, 2023. The waiver in this Section 76.3(b)(2) shall not apply to any fees for the renewal of a Business Registration Certificate.
(c) Waiver for Qualified Businesses With New Location. All Permit Fees and initial License Fees shall be waived for each Qualified Business With New Location. The waiver in this Section 76.3(c) shall apply to applications for a permit or initial license filed by the Qualified Business With New Location on or after July 1, 2023, provided the Qualified Business With New Location files the application during the one-year period beginning on the date the Qualified New Business With New Location commenced business at the new business location and has registered the new business location with the Tax Collector no later than the time it files the application for the permit or initial license, and shall apply only to Permit Fees and initial License Fees with respect to that new business location. The waiver in this Section 76.3(c) shall not apply to (1) any fees for the renewal of a license, and (2) any fees collected by the City on behalf of any federal, state, or other local government agency.
(d) Repayment of Waived Fees.
(1) If the Tax Collector determines, based on any information in the Tax Collector’s possession or that may come into the Tax Collector’s possession, that a person claiming a waiver under subsection (b) or (c) of this Section 76.3 was not entitled to that waiver, the Tax Collector shall issue a determination to such person voiding the waiver, and demanding payment of the unpaid Permit Fees, License Fees, and/or Business Registration Fee, plus penalties and interest accruing on such fees under Business and Tax Regulations Code Section 6.17-1.1, calculated based on the original due date of the applicable fee. Such notice shall be issued under the rules in Section 6.11-2(b) and (c) of the Business and Tax Regulations Code.
(2) Except in the case of fraud, or in the case of an intent to evade the Business and Tax Regulations Code or rules and regulations issued or promulgated by the Tax Collector, in all of which cases there is no statute of limitations, every Tax Collector determination under this Section 76.3(d) shall be served within three years after the date that the person claimed the waiver under subsection (b) or (c) of this Section 76.3. The person may agree in writing to extend this three-year period for service of a notice of a determination.
(3) All Tax Collector determinations under this Section 76.3
(d) shall be final and are immediately due and payable to the Office of the Treasurer and Tax Collector. Any person that wishes to challenge a Tax Collector determination under this Section 76.3
(d) must pay the Permit Fees, License Fees, Business Registration Fees, penalties, and interest due, and file a claim for refund with the Controller under California Government Code Sections 900 et seq.
(e) Revocation of Fee Waiver.
(1) If a Qualified Business has more than $15,000,000 in San Francisco Gross Receipts in the calendar year of, or in any tax year during the three full-year tax years following, the date the Qualified Business commenced business within San Francisco or opened a new business location for Commercial Use, as applicable, any waiver under subsection (b) or (c) of this Section 76.3 shall be revoked retroactively for that Qualified Business.
(2) The Tax Collector shall issue a determination that the Qualified Business exceeded the $15,000,000 threshold in Section 76.3(e)(1), which determination may be based on the Qualified Business’s Gross Receipts Tax Return or any other information in the Tax Collector’s possession or that may come into the Tax Collector’s possession. Such notice shall be issued under Section 6.11-2(b) and (c) of the Business and Tax Regulations Code.
(3) Except in the case of fraud, or in the case of an intent to evade the Business and Tax Regulations Code or rules and regulations issued or promulgated by the Tax Collector, or in the case of failure to file a Gross Receipts Tax Return for the tax year in which the Qualified Business exceeded the $15,000,000 threshold, in all of which cases there is no statute of limitations, every Tax Collector determination under this Section 76.3(e) shall be served within three years after the date that a Gross Receipts Tax Return was due for the tax year in which the Qualified Business exceeded the $15,000,000 threshold or three years after that return was filed for that period, whichever is later. The Qualified Business may agree in writing to extend this three-year period for service of a notice of determination.
(4) A Qualified Business may petition the Tax Collector for a redetermination of the determination issued under this Section 76.3(e) under Business and Tax Regulations Code Sections 6.13-1 through 6.13-6. The full amount of any Permit Fees, License Fees, and/or Business Registration Fee waived under subsection (b) or (c) of this Section 76.3 and revoked under this Section 76.3(e) shall be due and payable without interest by the Qualified Business to the Office of the Treasurer and Tax Collector upon the later of the expiration of the period for filing a petition for redetermination under Section 6.13-1 and the date the Tax Collector’s decision on a timely filed petition for redetermination becomes final under Section 6.13-4.
(5) A Qualified Business that fails to pay the Permit Fees, License Fees, and/or Business Registration Fee due and payable by the due date under Section 76.3(e)(4) shall be treated as delinquent and subject to the penalties and interest in Business and Tax Regulations Code Section 6.17-1.1, calculated commencing on the payment due date under this Section 76.3(e)(4).
(g) Refunds. Any fee waived under subsection (b) or (c) of this Section 76.3
that has been collected by the City shall be refunded, without interest, upon request of the payer of the fee. Any refund request under this Section 76.3
(g) must be filed in writing with the Tax Collector within one year of payment of the fee.
(h) Effect of Fee Waiver.
(1) Notwithstanding Article 1 and Article 2 of the Business and Tax Regulations Code, the failure of a person to pay any Permit Fees and/or License Fees waived under subsection (b) or (c) of this Section 76.3 shall not preclude the person from continuing to do or perform the act or carry on the business, trade, profession, or calling for which City law requires the permit or license.
(2) The waiver of a person’s Business Registration Fee under subsection (b) of this Section 76.3 shall not relieve a person from the registration and other applicable requirements under Articles 6 and 12 of the Business and Tax Regulations Code, except for the payment of that person’s waived Business Registration Fee. If a person satisfies the registration and other applicable requirements under Articles 6 and 12 of the Business and Tax Regulations Code, except for the payment of any waived Business Registration Fee, such person shall be treated for all purposes as if they had paid the Business Registration Fee.
(i) Information Collection and Reporting. The Tax Collector shall collect information on the number of Qualified Businesses by supervisorial district that received a waiver of one or more fees under subsections (b) and (c) of this Section 76.3, the business activity codes under the North American Industry Classification System of those Qualified Businesses by supervisorial district, and the fees and total amounts waived in the aggregate. Commencing with a report filed no later than April 15, 2024, covering the period July 1, 2023 through December 31, 2023, the Tax Collector shall submit annually a report to the Board of Supervisors for the prior calendar year no later than April 15 following that calendar year.
(j) The waiver of fees provided by this Section 76.3 shall expire by operation of law at the end of the day on June 30, 2025. No Permit Fees, initial License Fees, or Business Registration Fees shall be waived for applications for permits, licenses, or Business Registration Certificates filed on or after July 1, 2025. As of December 31, 2026, the City Attorney is authorized to cause this Section 76.3 to be removed from the Business and Tax Regulations Code.