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Supervisors advance discussion of stock-option payroll tax exclusion but continue items for amendment and study
Summary
The subcommittee heard competing proposals to exclude pre‑IPO stock compensation from payroll taxes for a limited period and to cap post‑IPO tax liability; the Comptroller's Office estimated a broad pre‑IPO exclusion would cost under $1 million annually and recommended capping rather than a full exemption. Substantive amendments (including extending the exclusion period to six years, broadening eligibility beyond tech, and adding reporting requirements) were adopted for further consideration and items were continued to the call of the chair.
The Budget and Finance Subcommittee took up two related ordinances proposing payroll tax relief tied to stock‑based compensation. Supervisors discussed competing and complementary approaches: one bill sought a time‑limited exclusion for pre‑IPO stock compensation to reduce a large, one‑time payroll tax spike when employees exercise options after an IPO; another focused on post‑IPO treatment for more mature companies.
Ted Egan of the Comptroller’s Office…
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