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In addition to the annual or quarterly license fees required in Sections 90, 93, 94, 97, 118, 141, 143, 236, 237, 238, 239, 240, 242, 243, 244, 245 and 247, there is hereby required the payment of a $5 surcharge to be payable during the calendar year 1973 together with the specified license fee. The surcharge shall be paid at the same time the license fee is paid.
This surcharge shall be for the purpose of making a microfilm record system for all building records and providing for the necessary services, equipment, material and related costs attendant thereto. All surcharge fees collected shall be deposited into the Building Record Fund of the Department of Public Works as established in Section 319.2 of the Building Code.
(Added by Ord. 325-72, App. 11/9/72)
(Amended by Ord. 274-64, App. 10/16/64; repealed by Ord. 238-11, File No. 111101, App. 12/15/2011, Eff. 1/14/2012)
(a) Commencing March 31, 2012, the Unified License Bill provisions in this Section 76.1 shall apply to licenses that are renewable annually and are due and payable in full to the Treasurer and Tax Collector on March 31 of each year for the upcoming license period beginning April 1 (or for the 12-month period commencing with the most recent Renewal Date prior to March 31 for fees under Public Works Code Section 184.83). The Tax Collector shall prorate fees for new licenses issued prior to March 31, or after March 31 to the end of the license period, on a monthly basis. Except as provided in subsection (d), the Tax Collector may not accept partial payments, and may not refund fees paid by a licensee if the licensee ceases operating the business prior to the end of the license period.
(b) Whenever a City ordinance imposes a license fee, it shall be unlawful to do or perform the act or to carry on the business, trade, profession, or calling for which City law requires the license without obtaining and maintaining the required license.
All license fees are payable, when due, to the Office of the Treasurer and Tax Collector, and shall be delinquent if not paid when due. Except as provided in subsection (d), if the license fees are not paid within 30 days after they become due, the license shall expire by operation of law and the licensee must obtain a new license and pay all applicable penalties specified below and fees incurred under the previously expired license; provided, however, that the licensee shall not be subject to the penalties unless the Tax Collector sent notice to the licensee prior to February 28 of the same year, informing the licensee that the permit is about to expire. The notice that the license is about to expire may be a part of the annual billing statement.
If a licensee does not pay the fee within 30 days after it becomes due, but the licensee continues to operate the business, the Tax Collector shall add 10% to the amount of the license fee as a penalty for nonpayment. If the licensee does not pay the fee within 60 days after it becomes due, but the licensee continues to operate the business, the Tax Collector shall add an additional 5% to the amount of the license fee as a penalty for nonpayment, for a total penalty of 15%. If the licensee does not pay the fee within 90 days after it becomes due, but the licensee continues to operate the business, the Tax Collector shall add an additional 10% to the amount of the license fee as a penalty for nonpayment, for a total penalty of 25%. If the licensee has failed for a period of six months or more to pay a license fee, but has continued to operate the business, the Tax Collector shall add an additional 25% to the amount of the license fee as a penalty for nonpayment, for a total penalty of 50%, and shall refer the delinquent licensee to the department charged with administering the permit for administrative action on the permit. These penalties are mandatory and City officers and employees may not waive them in whole or in part. These penalties are in addition to any collection costs that the Tax Collector may collect from the delinquent licensee.
(c) Each department shall maintain on its website an up-to-date schedule of all fees that it collects. The Municipal Code shall include an editor’s statement informing the public that the fees administered pursuant to this Section 76.1 are subject to annual review and adjustment to reflect the City’s cost increases or decreases, which may include adjustments based upon the Consumer Price Index that most accurately tracks increases and decreases in the City’s cost for the function, service, or undertaking that the fee will pay for, and that each department maintains on its website an up-to-date list of the fees charged subject to adjustment. This subsection (c) is not intended to change the processes for adjustment of fees as provided in the Municipal Code.
(d) Notwithstanding subsections (a) and (b) of this Section 76.1, the Tax Collector, in the Tax Collector’s sole discretion, may enter into an installment payment plan on or before April 30, 2023, for a delinquent licensee to pay any delinquent license fees and penalties collected by the Tax Collector under this Section 76.1 on behalf of the Department of Public Health, or its successor department, that were originally due before March 31, 2023. The Tax Collector may not enter into an installment payment plan with a delinquent licensee that is delinquent on license fees collected by the Tax Collector under this Section 76.1 on behalf of any City department or agency other than the Department of Public Health, or its successor department.
(1) Any installment payment plan under this subsection (d) shall have a term of no longer than 24 months, and shall require the payment of all delinquent license fees collected by the Tax Collector under this Section 76.1 on behalf of the Department of Public Health, plus all penalties accrued on such delinquent license fees through the date the installment payment plan is executed by both the Tax Collector and the delinquent licensee.
(2) If a delinquent licensee enters into an installment payment plan under this subsection (d):
(A) The delinquent licensee’s Department of Public Health licenses subject to expiration for non-payment under subsection (a) shall be tentatively reinstated for the duration of the installment payment plan and the delinquent licensee shall not be treated as delinquent by the City as a result of that non-payment as long as the delinquent licensee remains current on its payments under the installment payment plan, is not delinquent on any tax liabilities owed to the Tax Collector under the Business and Tax Regulations Code, and is not delinquent on any license fees collected by the Tax Collector under this Section 76.1 that are not included in the installment payment plan; and
(B) Any penalties under subsection (b) on the delinquent license fees that had not yet accrued under subsection (d)(1) shall not be imposed.
(3) Once the delinquent licensee has made all payments under the installment payment plan, the tentatively reinstated license or licenses, as applicable, shall be fully reinstated.
(4) The Tax Collector may terminate the installment payment plan if the delinquent licensee fails to make a timely payment under the installment payment plan, or if during the term of the installment payment plan the delinquent licensee becomes delinquent on any tax liabilities owed to the Tax Collector under the Business and Tax Regulations Code or becomes delinquent on any license fees collected by the Tax Collector under this Section 76.1 that are not included in the installment payment plan. Upon the Tax Collector’s termination of the installment payment plan:
(A) Any penalties under subsection (b) on the delinquent license fees that had not yet accrued under subsection (d)(1) shall accrue immediately based on the original due date of license fees;
(B) The tentatively reinstated license or licenses, as applicable, shall expire immediately by operation of law and the delinquent licensee must obtain a new license or licenses, as applicable, and pay to the Tax Collector immediately all payments remaining under the installment payment plan plus the additional penalties accrued under subsection (d)(4)(A); and
(C) The Tax Collector shall refer the delinquent licensee to the Department of Public Health for administrative action on the permit.
(e) If any subsection, sentence, clause, phrase, or word of this Section 76.1, or any application thereof to any person or circumstance, is held to be invalid or unconstitutional by a decision of a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions or applications of this Section. The Board of Supervisors hereby declares that it would have enacted this Section and each and every subsection, sentence, clause, phrase, and word not declared invalid or unconstitutional without regard to whether any other portion of this Section or application thereof would be subsequently declared invalid or unconstitutional.
(a) The Unified License Bill provisions in this Section 76.1-1 shall apply to licenses that are renewable annually and are due and payable in full to the Treasurer and Tax Collector on March 31 of each year for the upcoming license period beginning on April 1 (or for the 12-month period commencing with the most recent Renewal Date prior to March 31 for fees under Public Works Code Section 184.83). The Tax Collector shall prorate fees for new licenses issued prior to March 31, or after March 31 to the end of the license period, on a monthly basis. The Tax Collector may not accept partial payments, and may not refund fees paid by a licensee if the licensee ceases operating the business prior to the end of the license period.
(b) Whenever a City ordinance imposes a license fee, it shall be unlawful to do or perform the act or to carry on the business, trade, profession, or calling for which City law requires the license without obtaining and maintaining the required license.
(c) All license fees are payable, when due, to the Office of the Treasurer and Tax Collector, and shall be delinquent if not paid when due. If the license fees are not paid when due, the license shall expire by operation of law and the licensee must obtain a new license and pay all applicable penalties and interest specified below and fees incurred under the previously expired license; provided, however, that the licensee shall not be subject to the penalties and interest unless the Tax Collector sent notice to the licensee prior to February 28 of the same year, informing the licensee that the permit is about to expire. The notice that the license is about to expire may be a part of the annual billing statement.
(d) Any licensee that fails to pay the fee but continues to operate the business, shall pay a penalty of 5% of the license fee, if the failure is for not more than one month after the license fee was due and unpaid, plus an additional 5% for each following month or fraction of a month during which such failure continues, up to 25% in the aggregate, until the date of payment. If the licensee has failed for a period of six months or more to pay a license fee, but has continued to operate the business, the Tax Collector shall refer the delinquent licensee to the department charged with administering the permit for administrative action on the permit. The penalties in this subsection (d) are in addition to any collection costs that the Tax Collector may collect from the delinquent licensee. The department charged with administering the license may waive these penalties in whole or in part if the licensee’s failure to pay the fee is due to reasonable cause.
(e) Any licensee who fails to pay a license fee shall also pay interest on the unpaid fee at the rate of 1% per month, or fraction of a month, from the date the fee was due and unpaid through the date the licensee pays in full the delinquent fee, penalties, and interest. The department charged with administering the license may waive this interest in whole or in part if the licensee’s failure to pay the fee is due to reasonable cause.
(f) Each department shall maintain on its website an up-to-date schedule of all fees that it collects. The Municipal Code shall include an editor’s statement informing the public that the fees administered pursuant to this Section 76.1-1 are subject to annual review and adjustment to reflect the City’s cost increases or decreases, which may include adjustments based upon the Consumer Price Index that most accurately tracks increases and decreases in the City’s cost for the function, service, or undertaking that the fee will pay for, and that each department maintains on its website an up-to-date list of the fees charged subject to adjustment. This subsection (f) is not intended to change the processes for adjustment of fees as provided in the Municipal Code.
(g) If any subsection, sentence, clause, phrase, or word of this Section 76.1-1, or any application thereof to any person or circumstance, is held to be invalid or unconstitutional by a decision of a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions or applications of this Section. The Board of Supervisors hereby declares that it would have enacted this Section and each and every subsection, sentence, clause, phrase, and word not declared invalid or unconstitutional without regard to whether any other portion of this Section or application thereof would be subsequently declared invalid or unconstitutional.
(h) This Section 76.1-1 shall apply to license periods beginning on or after April 1, 2026, except that for fees under Public Works Code Section 184.83 this Section shall apply to fees for Renewal Dates for which fees are due on or after March 31, 2026. All references in the Municipal Code to Section 76.1 shall be to Section 76.1-1 for license periods beginning on or after April 1, 2026 (except that for fees under Public Works Code Section 184.83 references to Section 76.1 shall be to Section 76.1-1 for fees for Renewal Dates for which fees are due on or after March 31, 2026).
(Added by Ord. 279-24, File No. 240926, App. 12/19/2024, Eff. 1/19/2025, Oper. 2/1/2025)
“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 Section 76.1 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.
(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.
(Added by Ord. 179-23, File No. 230664, App. 7/28/2023, Eff. 8/28/2023, Retro. 7/1/2023; amended by Ord. 72-24, File No. 240126, App. 4/12/2024, Eff. 5/13/2024; Proposition M, 11/5/2024, Eff. 12/20/2024; Ord. 279-24, File No. 240926, App. 12/19/2024, Eff. 1/19/2025, Oper. 2/1/2025)
(Added by Ord. 25-07, File No. 061526, App. 2/9/2007; repealed by Ord. 56-15
, File No. 120967, App. 5/8/2015, Eff. 6/7/2015)
No license granted or issued under any of the provisions of any ordinance shall be in any manner assignable or transferable, or authorize any person other than is therein mentioned or named to do business or authorize any other business than is therein mentioned or named to be done or transacted, at any place other than is therein mentioned or named.
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