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(a) An organization that is exempt from income taxation by Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the California Revenue and Taxation Code or Subchapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, as amended, as qualified by Sections 502, 503, 504, and 508 of the Internal Revenue Code of 1986, as amended, shall be exempt from taxation under this Article 28, only so long as those exemptions continue to exist under state or federal law.
(b) For only so long as and to the extent that the City is prohibited from imposing the Homelessness Gross Receipts Tax, any person upon whom the City is prohibited under the Constitution or laws of the State of California or the Constitution or laws of the United States from imposing the Homelessness Gross Receipts Tax shall be exempt from the Homelessness Gross Receipts Tax.
(c) For purposes of this Article 28, gross receipts shall not include receipts that are excluded from gross receipts for purposes of the gross receipts tax imposed by Article 12-A-1, and also shall not include receipts subject to a gross receipts tax on commercial rents imposed as a result of a measure adopted by the voters of San Francisco in the June 5, 2018 election.
(d) This Section 2805 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) Any person or combined group that meets the requirements of subsection (b) for a tax year shall be allowed a non-refundable credit against that person or combined group’s Homelessness Gross Receipts Tax liability for that tax year equal to 10% of the amount specified under Section 2805.1(b)(1).
(b) To qualify for the credit in subsection (a), a person or combined group must, between January 1 of the tax year following the tax year for which the credit is being claimed and the date the person or combined group timely files its original annual tax return, enter into a binding agreement with the City, in substantially the form of the agreement included in Board of Supervisors File No. 190092, in which:
(1) The person, or each person in the combined group that is engaging in business within the City, irrevocably, fully, and unconditionally waives and releases its right to a refund (whether by return of payment, credit, offset, carryforward, or otherwise) of a specified amount of the Homelessness Gross Receipts Taxes reported on the person or combined group’s originally-filed Homelessness Gross Receipts Tax return for the tax year for which the person or combined group is claiming the credit based on either or both of the following:
(A) Any argument that the Homelessness Gross Receipts Tax Ordinance required at least a two-thirds vote of the electorate to pass.
(B) Any lawsuit challenging the Homelessness Gross Receipts Tax Ordinance or any other initiative tax measure in San Francisco or elsewhere in California that invalidates the Homelessness Gross Receipts Tax Ordinance or similar initiative tax measure because it was not passed by at least a two-thirds vote of the electorate.
(2) Notwithstanding Section 6.22-1 of the Business and Tax Regulations Code or any other provision of law that would limit public disclosure, the person or each person in the combined group that is engaging in business within the City waives any right to confidentiality in the aggregate amount of Homelessness Gross Receipts Tax liability subject to waiver under all agreements described in Section 2805.1(b) of all persons and combined groups, regardless of the number of persons or combined groups that enter into such agreements. Nothing in this subsection (b)(2) shall constitute a waiver of the confidentiality of the information in the person or combined group’s Homelessness Gross Receipts Tax return, or the terms of each agreement under Section 2805.1(b), other than the aggregate amount of Homelessness Gross Receipts Tax liability subject to waiver under all agreements described in Section 2805.1(b) of all persons and combined groups.
(3) The person, or each person in the combined group that is engaging in business within the City, agrees to indemnify the City if, subsequent to the person or combined group entering into the agreement, there are additional persons determined to have been engaging in business within the City as a member of the combined group for that tax year and such additional person or persons requests a refund (whether by return of payment, credit, offset, carryforward, or otherwise) of all or any portion of the amount waived under Section 2805.1(b)(1) for the tax year for which the person or combined group is claiming the credit in contravention of Section 2805.1(d).
(c) If a person or combined group enters into an agreement described in subsection (b), but does not claim the credit authorized by this Section 2805.1, the person or combined group shall remain subject to the terms of the agreement.
(d) Any person determined to have been engaging in business within the City as a member of a combined group for a tax year after that combined group entered into an agreement described in subsection (b) for that tax year shall be deemed to have entered into the agreement and shall be subject to the terms of the agreement as if it had executed the agreement itself.
(e) The Tax Collector shall verify that any credit claimed pursuant to this Section 2805.1 is correct.
(f) The tax credit authorized by this Section 2805.1 shall be effective for tax year 2019 and each subsequent tax year, but shall expire by operation of law and not be available for the tax year and all subsequent tax years from the earlier of:
(1) The tax year in which San Francisco Superior Court Case No. CGC-19-573230 (City and County of San Francisco v. All persons interested in the matter of Proposition C on the November 6, 2018 San Francisco ballot, authorizing an increase in specified business taxes to fund specified homeless services in San Francisco, and all other matters and proceedings relating thereto), is finally resolved; and
(2) Tax year 2024.
No person or combined group may claim the credit authorized by this Section for the tax year in which San Francisco Superior Court Case No. CGC-19-573230 is finally resolved or in any tax year thereafter, or for any tax year commencing on or after January 1, 2024, whichever is earlier.
(g) The Board of Supervisors hereby authorizes the Tax Collector to enter into the agreements described in subsection (b), in substantially the form included in Board of Supervisors File No. 190092, and authorizes the Tax Collector, in consultation with the City Attorney and the Controller, to agree to changes to the agreements that do not materially decrease the benefits to the City or materially increase the obligations to the City.
(Added by Ord. 73-19, File No. 190092, App. 4/26/2019, Eff. 5/27/2019)
(a) Any person that, on or before the expiration of this Section 2805.2, makes an irrevocable gift to the Our City, Our Home Fund (established in Administrative Code Section 10.100-164) shall be allowed a non-refundable credit against the Homelessness Gross Receipts Tax liability of that person or the combined group of which that person is a part.
(b) The credit authorized by this Section 2805.2 shall equal 110% of the amount of the irrevocable gift made under subsection (a).
(c) If the irrevocable gift described in subsection (a) is made between January 1 and the date the person or combined group timely files its original annual tax return, the credit authorized by this Section 2805.2 shall be available for the tax year prior to the calendar year in which the person makes the irrevocable gift. If the irrevocable gift is made at any other time during the tax year, the credit authorized by this Section shall be available for the tax year in which the irrevocable gift is made. The person making the irrevocable gift may carry forward any unused portion of this credit to future tax years up to and including tax year 2025 to be used against the future Homelessness Gross Receipts Tax liability of the person or the combined group of which that person is a part in that future tax year. No part of this credit may be carried forward to tax years commencing on or after January 1, 2026.
(d) The Tax Collector shall verify that any credit claimed pursuant to this Section 2805.2 is correct.
(e) Notwithstanding Administrative Code Section 10.100-305 or any other provision of the Municipal Code restricting the department’s acceptance of gifts, the Office of the Treasurer and Tax Collector is authorized to accept the gifts described in subsection (a) of this Section 2805.2.
(f) This Section 2805.2 shall expire by operation of law and shall not be available for irrevocable gifts made on or after the earlier of:
(1) The date on which San Francisco Superior Court Case No. CGC-19-573230 (City and County of San Francisco v. All persons interested in the matter of Proposition C on the November 6, 2018 San Francisco ballot, authorizing an increase in specified business taxes to fund specified homeless services in San Francisco, and all other matters and proceedings relating thereto) is finally resolved; and
(2) January 1, 2024.
Any irrevocable gift made to the Our City, Our Home Fund on or after the date on which San Francisco Superior Court Case No. CGC-19-573230 is finally resolved, or on or after January 1, 2024, whichever is earlier, shall not entitle the person making the irrevocable gift to the credit described in this Section 2805.2.
(Added by Ord. 73-19, File No. 190092, App. 4/26/2019, Eff. 5/27/2019)
(a) An organization that is exempt from income taxation by Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the California Revenue and Taxation Code or Subchapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, as amended, as qualified by Sections 502, 503, 504, and 508 of the Internal Revenue Code of 1986, as amended, shall be exempt from taxation under this Article 28, only so long as those exemptions continue to exist under state or federal law.
(b) For purposes of this Article 28, gross receipts as defined in Section 952.3 shall not include receipts from business activities if, and only so long as and to the extent that, the City is prohibited from taxing such receipts under the Constitution or laws of the United States or under the Constitution or laws of the State of California.
(c) Rent Controlled Buildings Exclusion. A person subject to the homelessness gross receipts tax may exclude from gross receipts in any tax year 50% of the total amount received from the rental of real property to tenants in occupancy at any location in the City, which is subject to limits on rent increases pursuant to the Residential Rent Stabilization and Arbitration Ordinance, Administrative Code, Chapter 37, Section 37.1 et seq.
(d) Exclusion of Certain Sales of Real Property. For purposes of this Article 28, gross receipts as defined in Section 952.3
shall not include receipts from any sales of real property with respect to which the Real Property Transfer Tax imposed by Article 12-C has been paid to the City.
(e) For only so long as and to the extent that the City is prohibited from imposing the tax under this Article 28, the following persons shall be exempt from the homelessness gross receipts tax:
(1) Banks and financial corporations exempt from local taxation under Article XIII, Section 27 of the California Constitution and Revenue and Taxation Code Section 23182;
(2) Insurance companies exempt from local taxation under Article XIII, Section 28 of the California Constitution;
(3) Persons engaging in business as a for-hire motor carrier of property under Revenue and Taxation Code Section 7233;
(4) Persons engaging in intercity transportation as a household goods carrier under Public Utilities Code Section 5327;
(5) Charter-party carriers operating limousines that are neither domiciled nor maintain a business office within the City under Public Utilities Code Section 5371.4; and
(6) Any person upon whom the City is prohibited under the Constitution or laws of the State of California from imposing the homelessness gross receipts tax.
(f) For purposes of this Article 28, gross receipts shall not include receipts subject to the Early Care and Education Commercial Rents Tax under Article 21 of this Business and Tax Regulations Code.
(g) This Section 2805.3 shall apply to tax years beginning on or after January 1, 2025.
(Added by Proposition M, 11/5/2024, Eff. 12/20/2024)
(a) Notwithstanding any other provision of this Article 28, a person or combined group exempt from payment of the gross receipts tax under Section 954.1 of Article 12-A-1, as amended from time to time, shall also be exempt from payment of the homelessness gross receipts tax.
(b) This Section 2805.4 shall apply to tax years beginning on or after January 1, 2025.
(Added by Proposition M, 11/5/2024, Eff. 12/20/2024)
(a) Persons subject to the Homelessness Gross Receipts Tax shall file returns at the same time and in the same manner as returns filed for the gross receipts tax imposed by Article 12-A-1, including the rules for combined returns under Section 956.3, as amended from time to time.
(b) If a person is subject to the Homelessness Gross Receipts Tax but is not required to file a gross receipts tax return under Article 12-A-1, such person or combined group’s Homelessness Gross Receipts Tax return shall be filed at the same time and in the same manner as if such person or combined group were required to file a gross receipts tax return under Article 12-A-1.
(c) For purposes of this Article 28, a lessor of residential real estate is treated as a separate person with respect to each individual building in which it leases residential real estate units, notwithstanding Section 6.2-15 of Article 6, as amended from time to time, or subsection (a) of this Section 2806. This subsection (c) applies only to leasing residential real estate units within a building, and not to any business activity related to other space, either within the same building or other buildings, which is not residential real estate. The Tax Collector is authorized to determine what constitutes a separate building and the number of units in a building.
(Added by Proposition C, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2019)
(a) For tax years ending on or before December 31, 2024, the Tax Collector may, in his or her reasonable discretion, independently establish a person or combined group’s gross receipts within the City and establish or reallocate gross receipts among related entities so as to fairly reflect the gross receipts within the City of all persons and combined groups.
(b) For tax years beginning on or after January 1, 2025, the Tax Collector shall have the same authority with respect to the homelessness gross receipts tax as the Tax Collector has with respect to the gross receipts tax under Section 957 of Article 12-A-1 of this Business and Tax Regulations Code.
(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) This Article 28 is intended to authorize application of the Homelessness Gross Receipts Tax in the broadest manner consistent with its provisions and with the California Constitution, the United States Constitution, and any other applicable provision of federal or state law.
(b) The Homelessness Gross Receipts Tax imposed by this Article 28 is in addition to all other City taxes, including the gross receipts tax imposed by Article 12-A-1, as amended from time to time. Accordingly, by way of example and not limitation, persons subject to both the Homelessness Gross Receipts Tax and the gross receipts tax shall pay both taxes. Persons exempt from either the gross receipts tax or the Homelessness Gross Receipts Tax, but not both, shall pay the tax from which they are not exempt.
(Added by Proposition C, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2019)
Except as otherwise provided under this Article 28, the Homelessness Gross Receipts Tax Ordinance shall be administered pursuant to Article 6 of the Business and Tax Regulations Code, as amended from time to time, including all penalties and other charges imposed by that Article.
(Added by Proposition C, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2019)
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