This ordinance amends tax regulations to exempt low-income housing partnerships from gross receipts tax and business registration fees starting in 2026, and it also exempts the City and certain property holders from the commercial vacancy tax with retroactive effects. Additionally, it mandates refunds for commercial vacancy taxes already paid by those exempted parties.
Ordinance amending the Business and Tax Regulations Code to exclude from gross receipts tax the gross receipts of low-income housing partnerships received from the lease of residential real estate beginning with the 2026 tax year; suspend the business registration certificate and fee requirements for those partnerships beginning with the registration year commencing April 1, 2026; exempt the City from the commercial vacancy tax retroactive to January 1, 2025; and exempt persons holding property to be used for City-sponsored affordable housing projects from the commercial vacancy tax retroactive to January 1, 2022, and refund commercial vacancy taxes paid by exempt persons.
How it got here
This legislation originated from a need to support low-income housing partnerships by amending the Business and Tax Regulations Code.
Mayor Lurie introduced an ordinance to amend the Business and Tax Regulations Code to provide tax exclusions and exemptions for low-income housing partnerships.
The Budget and Finance Committee received the proposed legislation for review and consideration.
The Tenderloin Neighborhood Development Corporation expressed support for the legislation, highlighting its potential to reduce financial barriers for affordable housing development.
The Budget and Finance Committee recommended the ordinance for passage.
The Board of Supervisors passed the ordinance on first reading.
The Board of Supervisors finally passed the ordinance, which included tax exemptions and suspensions for low-income housing partnerships.
Mayor Lurie approved the ordinance, finalizing its enactment.
Reconstructed from attached documents & the official record
