Save Small Business.
Protect Local Jobs.

San Francisco’s small businesses are the backbone of our neighborhoods and a major source of local jobs.

But rising costs, declining foot traffic, and uncertainty about future taxes are making it harder for them to survive and grow. San Francisco’s economic recovery has just begun. But we all have to work hard to keep it on track.

The Small Business and Economic Recovery Act is a voter-driven solution that delivers immediate, targeted tax relief to small businesses. It will mean fewer empty storefronts in our neighborhoods and more jobs for San Franciscans.

Expands Small Business Tax Exemptions

The San Francisco small business sector was devastated by the pandemic and crime. It still needs help to fully recover. Our plan gives businesses more room to stabilize and grow by:

Raising the gross-receipts threshold for the small business tax exemption to $7.5 million, consistent with recent legislative definitions from the Board of Supervisors.
Allowing thousands more neighborhood restaurants, retail stores, coffee shops, and groceries to qualify for full exemption from the Gross Receipts Tax.
Ensuring our small businesses aren’t hit with sudden tax increases.

Measured, Responsible Contributions From Our Most Successful Companies

Asks the city’s most successful companies to contribute more to city services in a targeted and predictable way.
Accelerates and locks in already approved future rates without raising taxes beyond what voters have already authorized.
Allows the city to further support small businesses and neighborhood corridors without undermining core services or San Francisco’s economic competitiveness.

Why This Matters
for Small Businesses

Small businesses operate on small budgets. Every dollar spent on taxes is a dollar not spent on:

Hiring workers
Raising wages
Keeping prices affordable
Reopening vacant storefronts

The Small Business and Economic Recovery Act gives small businesses:

Relief when our economic recovery is still fragile
Fairness by asking our larger business to contribute to offset support for small businesses

That means thousands more local restaurants, grocers, coffee shops, retailers, and neighborhood employers will pay no gross receipts tax, freeing up money to hire, grow, and stay in San Francisco

A Balanced,
Pro‑Jobs Approach

This measure was carefully designed to:

Support economic recovery
Protect local jobs and retail establishments serving our neighborhoods like pharmacies and grocery stores
Avoid new taxes on small businesses

It’s a responsible, voter‑driven alternative to proposals that would raise costs or derail our economic recovery.

Frequently
Asked Questions

What is the Protect Local Jobs Act?

The Protect Local Jobs Act is a local ballot measure that helps San Francisco’s economy recover by cutting taxes for small businesses while accelerating scheduled tax increases on some of San Francisco’s largest businesses. It’s designed to reduce costs for small businesses and their customers and decrease ground floor vacancies in our neighborhood corridors, all while keeping San Francisco competitive on the global stage.

Does this measure raise taxes on small businesses?

No, this measure expands the Small Business Tax Exemption, allowing many more local businesses to pay zero gross receipts tax.

Which businesses qualify for the expanded exemption?

Businesses with up to $7.5 million in gross receipts starting in 2027. This expansion means thousands more neighborhood businesses will be fully exempt from the City’s gross receipts tax.

Who pays more under this measure?

We are asking our most successful companies to pay slightly more, faster, to make sure that our small businesses that need it the most get relief.

Didn’t voters already approve the overpaid executive tax?

Yes. This measure honors and preserves the structure voters already approved, while making modest adjustments to ensure the tax remains effective and provides relief to small businesses moving forward. Other proposals provide no relief to small businesses, would drive out retail like pharmacies and grocery stores, and undermine San Francisco’s competitiveness.

Does this measure affect employee wages or benefits?

No. The tax applies to businesses, not individual workers, and is based on company-level executive pay ratios. It does not reduce worker pay or benefits.

Why is this measure needed now?

San Francisco is still facing:

High commercial vacancies
Reduced downtown activity
Strong competition from nearby cities with lower and simpler business taxes

This measure helps keep jobs in San Francisco, supports local businesses, and prevents rising business costs from being passed on to consumers.

Does this measure make San Francisco less business-friendly?

No, it actually makes San Francisco more competitive by:

Reducing taxes for small businesses.
Providing stability and predictability in the tax code
Asking our largest and most successful companies to pay slightly more to help small businesses.

When would this measure take effect?

If approved by voters, the measure would take effect as soon as legally possible after the election is certified, with the expanded small business exemption beginning in tax year 2027.

What’s the bottom line?

The Protect Local Jobs Act is a balanced, common-sense approach:

Small businesses get real tax relief
Overpaid executives pay their fair share
San Francisco protects jobs and economic recovery

Save Small Business.Protect Local Jobs.