PROP M: Change business tax structures

This measure would change how taxes on businesses are calculated. Instead of taxes based heavily on payroll expenses, they would be determined by sales profit. This change would ease some of the burden on the five biggest employers in the city who are responsible for paying 85% of all business taxes in San Francisco and spread the burden among other big companies, in hopes that the City wouldn’t be too reliant on a handful of companies to bring in revenue. As a result, some businesses would pay more in taxes and some businesses would pay less. If passed, Prop M would make it so that small businesses that make $5 million or less a year in revenue would not have to pay business taxes. This currently applies to businesses that make only $2 million or less a year in revenue. 

If Prop M doesn’t pass, every business’s taxes would go up because of a proposition passed by voters in 2020.