The Way It Is Now:

• The City collects taxes on gross receipts from many businesses in San Francisco (Gross Receipts Tax). For most businesses, the Gross Receipts Tax rate is between 0.053% and 1.008% of San Francisco gross receipts, with some rates scheduled to increase in coming years.
• The City imposes a per-ride tax on certain transportation businesses that provide prearranged rides that originate in San Francisco. This tax applies to transportation network companies, which connect drivers to passengers, and businesses providing rides in some types of autonomous vehicles. Transportation network companies do not include taxi or limousine services. The rates for that tax are between 1.5% and 3.25% of the fares attributable to passenger rides within San Francisco.
• Autonomous vehicles can operate without a human driver and some can transport passengers.
• The San Francisco Municipal Transportation Agency operates a public transportation system (Muni) of buses, light rail vehicles, streetcars and cable cars.
• State law limits the total revenue that the City may spend each year. The voters may approve increases to this spending limit for up to four years.

The Proposal:

Proposition ___ would:

• Create a new gross receipts tax on transportation network companies and autonomous vehicle businesses, in addition to existing taxes. This new tax would be on passenger transportation service gross receipts in San Francisco above $500,000. The tax rates would be:
  • 1% on taxable gross receipts between $500,000.01 and $1,000,000 (one million dollars);
  • 2.5% on taxable gross receipts between $1,000,000.01 and $2,500,000 (two-and-a-half million dollars);
  • 3.5% on taxable gross receipts between $2,500,000.01 and $25,000,000 (twenty-five million dollars); and
  • 4.5% on taxable gross receipts over $25,000,000 (twenty-five million dollars).
• Use the funds collected from the new tax to:
  • Preserve, maintain or increase Muni public transportation services;
  • Improve or preserve Muni service to public schools, libraries and parks by increasing service frequency, expanding and adding new routes; and
  • Maintain or expand discount fare or fare-free programs by Muni for people with disabilities, seniors, youth, students and low-income passengers.
• Keep the tax in place unless the voters repeal it through a future ballot measure.
• Give the Board of Supervisors authority to amend the tax by a two-thirds vote, so long as it does not undermine the intent of the tax.
• Increase the City's spending limit for four years.

If Proposition ___ [Changes to Business Taxes] passes with more votes than Proposition ___ [this measure], then Proposition __ [this measure] would have no legal effect.

If Proposition ___ [this measure] passes with more votes than Proposition ___ [Changes to Business Taxes], both propositions would have legal effect.

What Your Vote Means:

• A "YES" Vote: You want to create a new gross receipts tax on transportation network companies and autonomous vehicle businesses that provide passenger service for compensation and use the funds the City collects from the tax to support Muni transportation services and fare discount programs.
• A "NO" Vote: You do not want to make these changes.

1. A new gross receipts tax is proposed for transportation network companies (TNCs) and autonomous vehicle businesses in San Francisco, potentially generating approximately $25 million annually starting in tax year 2025.

2. The tax would be graduated, ranging from 1% to 4.5% based on taxable gross receipts, with companies earning $500,000 or less being exempt.

3. Revenue from this tax would support Muni transportation services and fare discount programs, with up to 2% allowed for tax administration.

4. The tax would remain in effect until repealed by voters, and the Board of Supervisors could amend it with a two-thirds majority vote if the amendment furthers the tax's purpose.

5. The initiative would also raise the City's spending limit for four years by the amount of new tax revenue generated by this measure.