Budget committee pauses implementation ordinance for new early care and education commercial rent tax to consider admin amendments

Supervisor Jane Kim asked the Budget and Finance Committee to adopt an ordinance that would give the tax collector authority and procedures to collect the voter‑approved Early Care and Education commercial rent tax. Kim said the voter‑approved measure—1% for warehouse space and 3.5% for other commercial space—will generate “over $4,140,000,000 a year” to expand child‑care subsidies, take about 2,500 low‑income families off the subsidized child‑care waiting list, provide subsidies for middle‑income families and raise wages for early‑childhood educators.

Kim told the committee the amendments she circulated are “largely administrative,” and she cited specific page references in the ordinance text addressing returns, payments and extensions of time for filing. She said the changes would allow the tax collector discretion to extend filing periods and would clarify how revenue will be collected; Amanda Fried from the Treasurer & Tax Collector’s office was present to answer technical questions.

A public commenter argued the city treats large technology companies preferentially and urged the committee to use those companies’ unpaid payroll taxes to fund other priorities; the commenter’s comments were recorded during the public‑comment period but did not reference the administrative ordinance’s text.

Because the sponsor introduced amendments, the committee approved a motion to amend and continued the item for one week to allow committee members and staff to review the changes. No substantive vote on the ordinance’s final adoption occurred at this meeting; the committee will revisit the item on the next scheduled agenda.