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(a) Except as otherwise provided in this Article 28, for the privilege of engaging in business in the City, the City imposes an annual Homelessness Gross Receipts Tax on each person engaged in business in the City that receives or is a member of a combined group that receives, more than $50,000,000 in total taxable gross receipts.
(b) If, after applying any rules or elections used to assign receipts to a business activity in Section 953.9 of Article 12-A-1, a person or combined group derives gross receipts from business activities described in only one of Sections 953.1 through 953.7 of Article 12-A-1, inclusive, the Homelessness Gross Receipts Tax shall be calculated by applying to the person or combined group’s taxable gross receipts in excess of $50,000,000 the following percentage that corresponds to the person or combined group’s business activities, as described in Sections 953.1 through 953.7 of Article 12-A-1, inclusive:
(c) If, after applying any rules or elections used to assign receipts to a business activity in Section 953.9 of Article 12-A-1, a person or combined group derives gross receipts from business activities described in more than one of Sections 953.1 through 953.7 of Article 12-A-1, inclusive, the taxable gross receipts and rate or rates of tax to be applied to that person or combined group shall be determined as follows:
(1) The taxable gross receipts shall be determined on an aggregate basis in numbered order of Sections 953.1 through 953.7, inclusive, i.e., the taxable gross receipts for business activities described in Section 953.1 of Article 12-A-1 should be determined first, Section 953.2 of Article 12-A-1 second, and so on;
(2) The rates in subsection (b) shall apply to the gross receipts from the corresponding sets of business activities described in Sections 953.1 through 953.7 of Article 12-A-1, inclusive, except that the rate shall be 0% for the first $50,000,000 of the person or combined group’s total taxable gross receipts from all taxable business activities;
(3) Whether the 0% rate for the first $50,000,000 of the person or combined group’s total taxable gross receipts from all taxable business activities applies to any set of business activities after the first shall be determined by adding to the taxable gross receipts from that set of business activities all of the taxable gross receipts from all previous sets of business activities; and
(4) The Homelessness Gross Receipts Tax for the person or combined group shall be the sum of the liabilities for each set of business activities determined under subsections (c)(1) through (3).
(d) Notwithstanding any other subsection of this Section 2804, every person engaging in business within the City as an administrative office, as defined in Section 953.8 of Article 12-A-1, shall pay an annual homelessness administrative office tax measured by its total payroll expense, as defined in Section 953.8(f) of Article 12-A-1, that is attributable to the City. If a person is a member of a combined group, then its tax shall be measured by the total payroll expense of the combined group attributable to the City. Such combined group shall pay only the homelessness administrative office tax, and not the tax imposed under other subsections of this Section 2804, but a person or combined group may be liable for both the administrative office tax imposed by Section 953.8 of Article 12-A-11 and the homelessness administrative office tax imposed by this subsection (d). The homelessness administrative office tax rate for each tax year is 1.5%.
Unless specified otherwise, this homelessness administrative office tax shall be considered part of the Homelessness Gross Receipts Tax for all purposes.
(e) “Taxable gross receipts” means a person or combined group’s gross receipts, not excluded under Section 2805, attributable to the City. The person or combined group’s gross receipts that are attributable to the City shall be determined in the same manner as in Article 12-A-1, as amended from time to time.
(f) This Section 2804 shall apply to tax years ending on or before December 31, 2024.
(Added by Proposition C, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2019; amended by Proposition M, 11/5/2024, Eff. 12/20/2024)
(a) Except as otherwise provided under this Article 28, the City imposes and every person engaging in business within the City shall pay an annual homelessness gross receipts tax measured by the person’s gross receipts from all taxable business activities attributable to the City. A person’s liability for the homelessness gross receipts tax shall be calculated according to this Article 28.
(b) The homelessness gross receipts tax is a privilege tax imposed upon persons engaging in business within the City for the privilege of engaging in a business or occupation in the City.
(c) The tax on Administrative Office Business Activities imposed by Section 2804.9 is intended as a complementary tax to the homelessness gross receipts tax, and shall be considered a homelessness gross receipts tax for purposes of this Article 28.
(d) This Section 2804.1 shall apply to tax years beginning on or after January 1, 2025.
(Added by Proposition M, 11/5/2024, Eff. 12/20/2024)
(a) The homelessness gross receipts tax rates applicable to Category 1 Business Activities for tax years beginning on or after January 1, 2025 are:
0% for taxable gross receipts between $0 and $1,000,000
0% for taxable gross receipts between $1,000,000.01 and $2,500,000
0% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.164% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.164% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.164% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.164% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.246% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.328% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.41% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
0.492% for taxable gross receipts over $1,000,000,000
(b) “Category 1 Business Activities” has the same meaning as in Section 953.20(b) of Article 12-A-1 of this Business and Tax Regulations Code.
(c) The amount of taxable gross receipts from Category 1 Business Activities subject to the homelessness gross receipts tax shall be three-quarters of the amount determined under Section 956.1 of Article 12-A-1 plus one-quarter of the amount determined under Section 956.2 of Article 12-A-1.
(Added by Proposition M, 11/5/2024, Eff. 12/20/2024)
(a) The homelessness gross receipts tax rates applicable to Category 2 Business Activities for tax years beginning on or after January 1, 2025 are:
0% for taxable gross receipts between $0 and $1,000,000
0% for taxable gross receipts between $1,000,000.01 and $2,500,000
0% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.162% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.284% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.284% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.284% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.284% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.284% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.284% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
0.284% for taxable gross receipts over $1,000,000,000
(b) “Category 2 Business Activities” has the same meaning as in Section 953.21(b) of Article 12-A-1 of this Business and Tax Regulations Code.
(c) The amount of taxable gross receipts from Category 2 Business Activities subject to the homelessness gross receipts tax shall be the total amount of gross receipts derived from or related to real properties located within the City.
(Added by Proposition M, 11/5/2024, Eff. 12/20/2024)
(a) The homelessness gross receipts tax rates applicable to Category 3 Business Activities for tax years beginning on or after January 1, 2025 are:
0% for taxable gross receipts between $0 and $1,000,000
0% for taxable gross receipts between $1,000,000.01 and $2,500,000
0% for taxable gross receipts between $2,500,000.01 and $25,000,000
0% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.325% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.325% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.325% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.325% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.325% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.325% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
0.325% for taxable gross receipts over $1,000,000,000
(b) “Category 3 Business Activities” has the same meaning as in Section 953.22(b) of Article 12-A-1 of this Business and Tax Regulations Code.
(c) The amount of taxable gross receipts from Category 3 Business Activities subject to the homelessness gross receipts tax shall be the total amount of gross receipts derived from or related to real properties located within the City.
(Added by Proposition M, 11/5/2024, Eff. 12/20/2024)
(a) The homelessness gross receipts tax rates applicable to Category 4 Business Activities for tax years beginning on or after January 1, 2025 are:
0% for taxable gross receipts between $0 and $1,000,000
0% for taxable gross receipts between $1,000,000.01 and $2,500,000
0% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.246% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.41% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.41% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.574% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.574% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.656% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.656% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
0.738% for taxable gross receipts over $1,000,000,000
(b) “Category 4 Business Activities” has the same meaning as in Section 953.23(b) of Article 12-A-1 of this Business and Tax Regulations Code.
(c) The amount of taxable gross receipts from Category 4 Business Activities subject to the homelessness gross receipts tax shall be three-quarters of the amount determined under Section 956.1 of Article 12-A-1 plus one-quarter of the amount determined under Section 956.2 of Article 12-A-1.
(Added by Proposition M, 11/5/2024, Eff. 12/20/2024)
(a) The homelessness gross receipts tax rates applicable to Category 5 Business Activities for tax years beginning on or after January 1, 2025 are:
0% for taxable gross receipts between $0 and $1,000,000
0% for taxable gross receipts between $1,000,000.01 and $2,500,000
0% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.574% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.656% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.656% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.656% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.738% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.82% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.82% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
0.82% for taxable gross receipts over $1,000,000,000
(b) “Category 5 Business Activities” has the same meaning as in Section 953.24(b) of Article 12-A-1 of this Business and Tax Regulations Code.
(c) The amount of taxable gross receipts from Category 5 Business Activities subject to the homelessness gross receipts tax shall be three-quarters of the amount determined under Section 956.1 of Article 12-A-1 plus one-quarter of the amount determined under Section 956.2 of Article 12-A-1.
(Added by Proposition M, 11/5/2024, Eff. 12/20/2024)
(a) The homelessness gross receipts tax rates applicable to Category 6 Business Activities for tax years beginning on or after January 1, 2025 are:
0% for taxable gross receipts between $0 and $1,000,000
0% for taxable gross receipts between $1,000,000.01 and $2,500,000
0% for taxable gross receipts between $2,500,000.01 and $25,000,000
1.148% for taxable gross receipts between $25,000,000.01 and $50,000,000
1.476% for taxable gross receipts between $50,000,000.01 and $75,000,000
1.476% for taxable gross receipts between $75,000,000.01 and $100,000,000
1.64% for taxable gross receipts between $100,000,000.01 and $150,000,000
1.64% for taxable gross receipts between $150,000,000.01 and $250,000,000
1.64% for taxable gross receipts between $250,000,000.01 and $500,000,000
1.64% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
1.64% for taxable gross receipts over $1,000,000,000
(b) “Category 6 Business Activities” has the same meaning as in Section 953.25(b) of Article 12-A-1 of this Business and Tax Regulations Code.
(c) The amount of taxable gross receipts from Category 6 Business Activities subject to the homelessness gross receipts tax shall be three-quarters of the amount determined under Section 956.1 of Article 12-A-1 plus one-quarter of the amount determined under Section 956.2 of Article 12-A-1.
(Added by Proposition M, 11/5/2024, Eff. 12/20/2024)
(a) The homelessness gross receipts tax rates applicable to Category 7 Business Activities for tax years beginning on or after January 1, 2025 are:
0% for taxable gross receipts between $0 and $1,000,000
0% for taxable gross receipts between $1,000,000.01 and $2,500,000
0% for taxable gross receipts between $2,500,000.01 and $25,000,000
0.328% for taxable gross receipts between $25,000,000.01 and $50,000,000
0.492% for taxable gross receipts between $50,000,000.01 and $75,000,000
0.492% for taxable gross receipts between $75,000,000.01 and $100,000,000
0.656% for taxable gross receipts between $100,000,000.01 and $150,000,000
0.656% for taxable gross receipts between $150,000,000.01 and $250,000,000
0.738% for taxable gross receipts between $250,000,000.01 and $500,000,000
0.738% for taxable gross receipts between $500,000,000.01 and $1,000,000,000
0.82% for taxable gross receipts over $1,000,000,000
(b) “Category 7 Business Activities” has the same meaning as in Section 953.26(b) of Article 12-A-1 of this Business and Tax Regulations Code.
(c) Except as otherwise provided in subsection (d), the amount of taxable gross receipts from Category 7 Business Activities subject to the homelessness gross receipts tax shall be the total amount of gross receipts derived from or related to real properties located within the City.
(d) The amount of taxable gross receipts determined under subsection (c) shall be reduced by any amounts that were included in a person or combined group’s gross receipts under subsection (c) and that the person or combined group paid to a subcontractor for work related to the real properties located with the City during the tax year. There shall be no deduction for any other costs, including without limitation costs for materials, fees, equipment, or other services. To claim such a deduction, a person must maintain an itemized schedule of payments to subcontractors.
(Added by Proposition M, 11/5/2024, Eff. 12/20/2024)
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