San Francisco to Phase Out Payroll Tax

SAN FRANCISCO—San Francisco voters Nov. 6 approved a labor- and business-backed measure to phase out the city’s payroll tax starting in 2014 and phase in a gross receipts tax.

Proposition E was approved 70.56 percent to 29.44 percent. San Francisco now joins more than 30 other California cities, including Los Angeles and Oakland, in levying gross receipts taxes on local businesses. Retail, wholesale, and certain services including repair and maintenance services would be taxed at 0.10 percent for receipts of $1,000,001 to $2.5 million; 0.135 percent for receipts between $2,500,001 and $25 million; and 0.16 percent for gross receipts over ...