The ordinance waives certain first-year fees for small businesses starting in San Francisco between November 1, 2021, and October 31, 2022, if they meet specific revenue criteria and are not formula retail. It also includes provisions for refunding any fees that were previously paid.
Ordinance waiving certain first-year permit, license, and business registration fees for businesses that either (1) commence engaging in business within the City from November 1, 2021, through October 31, 2022, have estimated first-year San Francisco gross receipts of $2,000,000 or less, have a registered business location that is for ground floor commercial use and not formula retail use, and have gross receipts in the next three tax years of $10,000,000 or less, or (2) open a new business location for ground floor commercial use and not formula retail use, reported San Francisco gross receipts of $2,000,000 or less on its most recent return, and have gross receipts in the next three tax years of $10,000,000 or less; and refunding any waived fees paid to the City.
How it got here
The legislation originated from the need to support small businesses in San Francisco during the economic recovery from the COVID-19 pandemic.
The analyst issued a report estimating that between 52% and 63% of small local businesses had not been able to pay rent in full, highlighting the economic challenges faced by small businesses due to the pandemic.
Voters approved a package of commercial permit streamlining changes aimed at supporting small businesses and addressing vacancies in commercial corridors.
The commission held a public hearing and recommended the Board of Supervisors approve the ordinance to waive fees for new small businesses, emphasizing its potential to aid economic recovery.
The committee amended the ordinance to expand the types of businesses eligible for fee waivers and to include existing businesses opening new locations.
The Board of Supervisors conducted the first reading of the ordinance, which waives certain fees for new small businesses commencing operations in the city.
The ordinance was finally passed by the Board of Supervisors, solidifying the fee waivers for new small businesses.
The Mayor approved the ordinance, allowing the fee waivers to take effect.
The fee waiver program officially began, targeting businesses that commenced operations within the specified timeframe.
Reconstructed from attached documents & the official record
The ordinance extends a program that waives certain first-year fees for businesses until June 30, 2023, and increases the eligibility criteria, allowing businesses with gross receipts up to $5 million to qualify. It also broadens the types of businesses covered, removes the ground floor location requirement, and updates procedures for fee waivers and challenges.
