What is it?

Beginning in 2027, Proposition C would make two changes to City business taxes. According to the Controller's Office, the changes would reduce annual City revenue by an estimated $30M–$40M.

1. Raise the small business exemption from $5M to $7.5M in SF gross receipts. Most businesses below this threshold would owe no Gross Receipts Tax or Top Executive Pay Tax.
2. Move up the scheduled 2028 Top Executive Pay Tax rate increase to 2027, with no further increases after that.

All thresholds would adjust with the Consumer Price Index.

Competing measure

Prop D is also on this ballot and changes the same tax code. Prop C makes smaller rate adjustments and raises the small business exemption, while Prop D significantly increases rates and changes how the tax rate is calculated by looking at compensation across all employees, globally, not just those located in SF.

If both pass, the one with more votes wins. Prop C's conflicting measures clause allows non-conflicting parts of the losing measure to still take effect. Prop D's clause would void the loser entirely.

Read the full annotated legal text →