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Committee advances ordinance to waive 2020–21 business registration and license fees for COVID‑impacted small businesses
Summary
The Budget & Finance Committee on Feb. 17 advanced an ordinance that would waive certain 2020–21 business registration and license fees and refund fees already paid for restaurants and for businesses under $25 million in gross receipts that derived at least half their revenue from activities ordered closed during the pandemic; it now goes to the full Board with a positive recommendation.
The San Francisco Board of Supervisors Budget and Finance Committee on Feb. 17 voted to send to the full Board an ordinance that would waive business registration and annual license fees for fiscal year 2020–21 for restaurants and for businesses with $25 million or less in gross receipts that derived 50% or more of revenue from activities the city ordered closed during the COVID‑19 pandemic. The ordinance would also refund any waived amounts already paid.
Sponsor Supervisor Stephanie told the committee the policy responds to repeated pleas from small business owners and is a matter of fairness. “It waives the business license fee and the registration fee for fiscal year 2020 and 2020‑21,” Supervisor Stephanie said, framing the measure as relief for owners who had been forced to stop operating by public health orders.
The committee reviewed the Budget and Legislative Analyst’s fiscal estimate; the BLA reported an initial estimate of a $16–$18 million revenue reduction based on U.S. Census data but said previously approved waivers and data limitations reduce that figure to an estimated $13–$15 million in foregone revenue. “We estimated the $16 to $18,000,000 reduction based on U.S. Census data,” the BLA explained on the record, and cautioned that tax‑collector data and prior waivers affect the final number.
City staff from the Treasurer’s Office described how the program would work operationally. The Treasurer’s representative said new questions have been added to business registration and tax renewal forms so businesses can identify whether they qualify (using 2019 gross receipts and whether a business activity was shut down) and that, once qualified, the payment portal will reflect a $0 liability for the affected fees. Staff acknowledged the 50% threshold in the ordinance is technically challenging for some filers and outlined outreach plans—email, letters and community partners—to get the word out.
Dozens of small business owners and merchants’ associations called into the meeting during public comment and urged approval. Callers described steep revenue losses, barriers to accessing grant programs, and difficulties with language and technology that could impede applications. Several callers asked that refunds be processed for owners who already paid fees.
The committee approved nonsubstantive amendments (technical date updates and a refund application deadline) and voted by roll call to forward the ordinance as amended to the full Board with a positive recommendation.
Next steps: The ordinance is scheduled to appear on the Board of Supervisors agenda; the committee record notes items acted upon that day are expected to be before the full Board on Feb. 23 unless otherwise stated.
