Board adopts payroll-exclusion for Central Market; 8-3 final vote

The San Francisco Board of Supervisors on Tuesday approved an ordinance creating a payroll expense tax exclusion for businesses located in the Central Market and Tenderloin area.

The ordinance, described by staff as an amendment to the Business and Tax Regulations Code to establish a payroll expense tax exclusion for firms in the Central Market/Tenderloin area, passed final adoption on an 8-3 roll call vote.

Supervisor John Avalos said he would vote against the measure and urged caution about creating narrow tax exceptions. “What I’m afraid of is that we make decisions like this. It erodes people’s confidence in our business tax in general,” Avalos said during debate, adding that exemptions create precedents that could invite more requests. Avalos said he, Supervisor Campos and Supervisor Mirkarimi had been thanked by some constituents for opposing the exemption, but he remained opposed.

President Chiu and a majority of colleagues supported the ordinance in the final roll call. The clerk recorded the final tally as eight ayes and three no votes; the board declared the ordinance finally passed.

Why it matters: The change directly affects how payroll-based taxes are applied to certain businesses in the Central Market and Tenderloin area; supporters argued it would help attract and retain economic activity there, while opponents warned about erosion of the tax base and precedent-setting narrow exemptions.

What’s next: The ordinance was finally passed by the board. The text adopted amends the City’s Business and Tax Regulations Code; the effective date and implementation steps will follow standard administrative processing.

Votes at a glance (item 12): ordinance amending Business and Tax Regulations Code to establish a payroll expense tax exclusion for businesses located in the Central Market/Tenderloin area — final passage, 8 ayes, 3 noes.