San Francisco County Municipal Code Art. 28 Homelessness Gross Receipts Tax Ordinance

Sec. 2801. Short Title. Sec. 2802. Findings and Purposes. Sec. 2803. Definitions. Sec. 2804. Imposition of Tax. Sec. 2804.1. Imposition of Tax. Sec. 2804.2. Homelessness Gross Receipts Tax Applicable to Category 1 Business Activities. Sec. 2804.3. Homelessness Gross Receipts Tax Applicable to Category 2 Business Activities. Sec. 2804.4. Homelessness Gross Receipts Tax Applicable to Category 3 Business Activities. Sec. 2804.5. Homelessness Gross Receipts Tax Applicable to Category 4 Business Activities. Sec. 2804.6. Homelessness Gross Receipts Tax Applicable to Category 5 Business Activities. Sec. 2804.7. Homelessness Gross Receipts Tax Applicable to Category 6 Business Activities. Sec. 2804.8. Homelessness Gross Receipts Tax Applicable to Category 7 Business Activities. Sec. 2804.9. Tax on Administrative Office Business Activities. Sec. 2804.10. Persons or Combined Groups Engaged in Multiple Business Activity Categories. Sec. 2804.11. Persons Deriving No Gross Receipts From Business Activities Outside the City. Sec. 2805. Exemptions and Exclusions. Sec. 2805.1. Credit for Waiving Right to Refund. Sec. 2805.2. Credit for Gifts to the Our City, Our Home Fund. Sec. 2805.3. Exemptions and Exclusions. Sec. 2805.4. Small Business Exemption. Sec. 2806. Combined Returns. Sec. 2807. Tax Collector Authorized to Determine Gross Receipts. Sec. 2808. Construction and Scope of the Homelessness Gross Receipts Tax Ordinance. Sec. 2809. Administration of the Homelessness Gross Receipts Tax Ordinance. Sec. 2810. Deposit of Proceeds; Expenditure of Proceeds. Sec. 2811. Amendment of Ordinance. Sec. 2812. Effect of State and Federal Authorization. Sec. 2813. Severability. Sec. 2814. Savings Clause.

SEC. 2801. SHORT TITLE. This Article 28 shall be known as the “Homelessness Gross Receipts Tax Ordinance,” and the tax it imposes shall be known as the “Homelessness Gross Receipts Tax.” (Added by Proposition C, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2019) SEC. 2802. FINDINGS AND PURPOSES. (a) San Francisco is experiencing a housing crisis of historic proportions that has led to a major humanitarian and public health crisis in large-scale homelessness for which the City has insufficient resources to address. (b) The Homelessness Gross Receipts Tax will fund the “Our City, Our Home Fund.” Consistent with the analysis of the Department of Homelessness and Supportive Housing (“HSH”) it is the intentions of the voters in adopting Article 28 to house at least 4,000 homeless people and expand shelter beds by 1,000 within five years, fund legal assistance and rent subsidies to keep San Franciscans housed, and fund intensive mental health and substance abuse services to move the City’s most severely impaired individuals off the streets. (c) In December, 2017 Donald Trump signed the “Tax Cuts and Jobs Act” into law which reduced the federal corporate tax rate from 35% to 21%, a 14% reduction.

(d) The San Francisco 2017 Homeless Count & Survey found that over 7,000 people in the City experience homelessness at any one time. According to HSH, as of April, 2018, the City has approximately 2,500 temporary shelter beds for the homeless population and there have been over 1,000 people on the waitlist for shelter each night. The intent of the voters in adopting Article 28 is to eliminate the waiting period for shelter. (e) For years San Franciscans have witnessed individuals with severe mental illnesses wandering City streets. One purpose of this Article 28 is to fund intensive mental health care and substance abuse treatment facilities linked to housing placement to ensure severely mentally ill and drug addicted people are able to exit homelessness. The intent of the voters in adopting Article 28 is to provide care sufficient to move all those San Franciscans with severe behavioral health issues out of homelessness. (f) Multiple studies have shown significant cost savings when cities invest in permanently affordable housing, thus reducing needs usage of hospitals, jails, and inpatient treatment facilities. The intent of voters in adopting Article 28 is to reduce overall costs for the City. (g) According to HSH, one in twenty-five public school students in San Francisco is homeless. This has a devastating effect on their educational outcomes and development. This Article 28 is intended to reduce family homelessness by more than 85%. (h) Approximately half of homeless people became homeless when they were less than 25 years old, according to the San Francisco 2017 Homeless Count & Survey. The intentions of voters in Article 28 is to ensure young homeless people are able to move into stable housing and avoid becoming chronically homeless adults. (i) This crisis of homelessness affects both homeless people and their housed neighbors. San Franciscans should not have to step over homeless people or walk out their doors and see tents on sidewalks, and homeless people should not be forced to live in these conditions. The intent of voters in adopting Article 28 is to significantly decrease the visible presence of homeless people and tent encampments on City streets by eliminating chronic homelessness. (j) HSH recently released a strategic framework describing its five-year goals for reducing street homelessness and ending family homelessness and has instituted a new system to coordinate services. According to HSH, the City needs increased revenue both to achieve these important goals and to address the problem more completely. (k) The Housing First model creates a foundation of stability for formerly homeless individuals by providing permanent supportive housing as a springboard for resolving and treating issues that may have precipitated a person’s first encounter with homelessness, or which may have come as a result of being forced to survive on the street. The intent of voters in adopting Article 28 is to provide the resources to implement a Housing First model. (l) It is the intention of the voters in adopting Article 28 to ensure that (1) homelessness funding for existing and future programs continues at the current base year levels without utilizing monies or resources from the Our City, Our Home Fund, and (2) tax proceeds from the Homelessness Gross Receipts Tax be used to fund the programs set forth in Section 2810. (Added by Proposition C, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2019; amended by Proposition M, 11/5/2024, Eff. 12/20/2024) SEC. 2803. DEFINITIONS. Unless otherwise defined in this Article 28, the terms used in this Article shall have the meanings given to them in Articles 6 and 12-A- 1 of the Business and Tax Regulations Code, as amended from time to time. (Added by Proposition C, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2019) SEC. 2804. IMPOSITION OF TAX. (a) Except as otherwise provided in this Article 28, for the privilege of engaging in business in the City, the City imposes an annual Homelessness Gross Receipts Tax on each person engaged in business in the City that receives or is a member of a combined group that receives, more than $50,000,000 in total taxable gross receipts. (b) If, after applying any rules or elections used to assign receipts to a business activity in Section 953.9 of Article 12-A-1, a person or combined group derives gross receipts from business activities described in only one of Sections 953.1 through 953.7 of Article 12-A-1, inclusive, the Homelessness Gross Receipts Tax shall be calculated by applying to the person or combined group’s taxable gross receipts in excess of $50,000,000 the following percentage that corresponds to the person or combined group’s business activities, as described in Sections 953.1 through 953.7 of Article 12-A-1, inclusive: Business Activity Set Tax Rate Section 953.1 .175% Section 953.2 .500% Section 953.3 .425%

Section 953.4 .690% Section 953.5 .475% Section 953.6 .600% Section 953.7 .325%

(c) If, after applying any rules or elections used to assign receipts to a business activity in Section 953.9 of Article 12-A-1, a person or combined group derives gross receipts from business activities described in more than one of Sections 953.1 through 953.7 of Article 12- A-1, inclusive, the taxable gross receipts and rate or rates of tax to be applied to that person or combined group shall be determined as follows: (1) The taxable gross receipts shall be determined on an aggregate basis in numbered order of Sections 953.1 through 953.7, inclusive, i.e., the taxable gross receipts for business activities described in Section 953.1 of Article 12-A-1 should be determined first, Section 953.2 of Article 12-A-1 second, and so on; (2) The rates in subsection (b) shall apply to the gross receipts from the corresponding sets of business activities described in Sections 953.1 through 953.7 of Article 12-A-1, inclusive, except that the rate shall be 0% for the first $50,000,000 of the person or combined group’s total taxable gross receipts from all taxable business activities; (3) Whether the 0% rate for the first $50,000,000 of the person or combined group’s total taxable gross receipts from all taxable business activities applies to any set of business activities after the first shall be determined by adding to the taxable gross receipts from that set of business activities all of the taxable gross receipts from all previous sets of business activities; and (4) The Homelessness Gross Receipts Tax for the person or combined group shall be the sum of the liabilities for each set of business activities determined under subsections (c)(1) through (3). (d) Notwithstanding any other subsection of this Section 2804, every person engaging in business within the City as an administrative office, as defined in Section 953.8 of Article 12-A-1, shall pay an annual homelessness administrative office tax measured by its total payroll expense, as defined in Section 953.8(f) of Article 12-A-1, that is attributable to the City. If a person is a member of a combined group, then its tax shall be measured by the total payroll expense of the combined group attributable to the City. Such combined group shall pay only the homelessness administrative office tax, and not the tax imposed under other subsections of this Section 2804, but a person or combined group may be liable for both the administrative office tax imposed by Section 953.8 of Article 12-A-11 and the homelessness administrative office tax imposed by this subsection (d). The homelessness administrative office tax rate for each tax year is 1.5%. Unless specified otherwise, this homelessness administrative office tax shall be considered part of the Homelessness Gross Receipts Tax for all purposes. (e) “Taxable gross receipts” means a person or combined group’s gross receipts, not excluded under Section 2805, attributable to the City. The person or combined group’s gross receipts that are attributable to the City shall be determined in the same manner as in Article 12-A-1, as amended from time to time. (f) This Section 2804 shall apply to tax years ending on or before December 31, 2024. (Added by Proposition C, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2019; amended by Proposition M, 11/5/2024, Eff. 12/20/2024)

(a) Except as otherwise provided under this Article 28, the City imposes and every person engaging in business within the City shall pay an annual homelessness gross receipts tax measured by the person’s gross receipts from all taxable business activities attributable to the City. A person’s liability for the homelessness gross receipts tax shall be calculated according to this Article 28. (b) The homelessness gross receipts tax is a privilege tax imposed upon persons engaging in business within the City for the privilege of engaging in a business or occupation in the City. (c) The tax on Administrative Office Business Activities imposed by Section 2804.9 is intended as a complementary tax to the homelessness gross receipts tax, and shall be considered a homelessness gross receipts tax for purposes of this Article 28. (d) This Section 2804.1 shall apply to tax years beginning on or after January 1, 2025. (Added by Proposition M, 11/5/2024, Eff. 12/20/2024)

CATEGORY 1 BUSINESS ACTIVITIES.

(a) The homelessness gross receipts tax rates applicable to Category 1 Business Activities for tax years beginning on or after January 1, 2025 are: 0% for taxable gross receipts between $0 and $1,000,000 0% for taxable gross receipts between $1,000,000.01 and $2,500,000 0% for taxable gross receipts between $2,500,000.01 and $25,000,000 0.164% for taxable gross receipts between $25,000,000.01 and $50,000,000 0.164% for taxable gross receipts between $50,000,000.01 and $75,000,000 0.164% for taxable gross receipts between $75,000,000.01 and $100,000,000 0.164% for taxable gross receipts between $100,000,000.01 and $150,000,000 0.246% for taxable gross receipts between $150,000,000.01 and $250,000,000 0.328% for taxable gross receipts between $250,000,000.01 and $500,000,000 0.41% for taxable gross receipts between $500,000,000.01 and $1,000,000,000 0.492% for taxable gross receipts over $1,000,000,000 (b) “Category 1 Business Activities” has the same meaning as in Section 953.20(b) of Article 12-A-1 of this Business and Tax Regulations Code. (c) The amount of taxable gross receipts from Category 1 Business Activities subject to the homelessness gross receipts tax shall be three-quarters of the amount determined under Section 956.1 of Article 12-A-1 plus one-quarter of the amount determined under Section 956.2 of Article 12-A-1. (Added by Proposition M, 11/5/2024, Eff. 12/20/2024)

CATEGORY 2 BUSINESS ACTIVITIES. (a) The homelessness gross receipts tax rates applicable to Category 2 Business Activities for tax years beginning on or after January 1, 2025 are: 0% for taxable gross receipts between $0 and $1,000,000 0% for taxable gross receipts between $1,000,000.01 and $2,500,000 0% for taxable gross receipts between $2,500,000.01 and $25,000,000 0.162% for taxable gross receipts between $25,000,000.01 and $50,000,000 0.284% for taxable gross receipts between $50,000,000.01 and $75,000,000 0.284% for taxable gross receipts between $75,000,000.01 and $100,000,000 0.284% for taxable gross receipts between $100,000,000.01 and $150,000,000 0.284% for taxable gross receipts between $150,000,000.01 and $250,000,000 0.284% for taxable gross receipts between $250,000,000.01 and $500,000,000 0.284% for taxable gross receipts between $500,000,000.01 and $1,000,000,000 0.284% for taxable gross receipts over $1,000,000,000 (b) “Category 2 Business Activities” has the same meaning as in Section 953.21(b) of Article 12-A-1 of this Business and Tax Regulations Code. (c) The amount of taxable gross receipts from Category 2 Business Activities subject to the homelessness gross receipts tax shall be the total amount of gross receipts derived from or related to real properties located within the City. (Added by Proposition M, 11/5/2024, Eff. 12/20/2024)

CATEGORY 3 BUSINESS ACTIVITIES. (a) The homelessness gross receipts tax rates applicable to Category 3 Business Activities for tax years beginning on or after January 1, 2025 are: 0% for taxable gross receipts between $0 and $1,000,000 0% for taxable gross receipts between $1,000,000.01 and $2,500,000 0% for taxable gross receipts between $2,500,000.01 and $25,000,000 0% for taxable gross receipts between $25,000,000.01 and $50,000,000 0.325% for taxable gross receipts between $50,000,000.01 and $75,000,000 0.325% for taxable gross receipts between $75,000,000.01 and $100,000,000 0.325% for taxable gross receipts between $100,000,000.01 and $150,000,000 0.325% for taxable gross receipts between $150,000,000.01 and $250,000,000 0.325% for taxable gross receipts between $250,000,000.01 and $500,000,000 0.325% for taxable gross receipts between $500,000,000.01 and $1,000,000,000 0.325% for taxable gross receipts over $1,000,000,000 (b) “Category 3 Business Activities” has the same meaning as in Section 953.22(b) of Article 12-A-1 of this Business and Tax Regulations Code. (c) The amount of taxable gross receipts from Category 3 Business Activities subject to the homelessness gross receipts tax shall be the total amount of gross receipts derived from or related to real properties located within the City. (Added by Proposition M, 11/5/2024, Eff. 12/20/2024)

CATEGORY 4 BUSINESS ACTIVITIES. (a) The homelessness gross receipts tax rates applicable to Category 4 Business Activities for tax years beginning on or after January 1, 2025 are: 0% for taxable gross receipts between $0 and $1,000,000 0% for taxable gross receipts between $1,000,000.01 and $2,500,000 0% for taxable gross receipts between $2,500,000.01 and $25,000,000 0.246% for taxable gross receipts between $25,000,000.01 and $50,000,000 0.41% for taxable gross receipts between $50,000,000.01 and $75,000,000 0.41% for taxable gross receipts between $75,000,000.01 and $100,000,000 0.574% for taxable gross receipts between $100,000,000.01 and $150,000,000 0.574% for taxable gross receipts between $150,000,000.01 and $250,000,000 0.656% for taxable gross receipts between $250,000,000.01 and $500,000,000 0.656% for taxable gross receipts between $500,000,000.01 and $1,000,000,000 0.738% for taxable gross receipts over $1,000,000,000 (b) “Category 4 Business Activities” has the same meaning as in Section 953.23(b) of Article 12-A-1 of this Business and Tax Regulations Code. (c) The amount of taxable gross receipts from Category 4 Business Activities subject to the homelessness gross receipts tax shall be three-quarters of the amount determined under Section 956.1 of Article 12-A-1 plus one-quarter of the amount determined under Section 956.2 of Article 12-A-1. (Added by Proposition M, 11/5/2024, Eff. 12/20/2024)

CATEGORY 5 BUSINESS ACTIVITIES. (a) The homelessness gross receipts tax rates applicable to Category 5 Business Activities for tax years beginning on or after January 1, 2025 are: 0% for taxable gross receipts between $0 and $1,000,000 0% for taxable gross receipts between $1,000,000.01 and $2,500,000 0% for taxable gross receipts between $2,500,000.01 and $25,000,000 0.574% for taxable gross receipts between $25,000,000.01 and $50,000,000 0.656% for taxable gross receipts between $50,000,000.01 and $75,000,000 0.656% for taxable gross receipts between $75,000,000.01 and $100,000,000 0.656% for taxable gross receipts between $100,000,000.01 and $150,000,000 0.738% for taxable gross receipts between $150,000,000.01 and $250,000,000 0.82% for taxable gross receipts between $250,000,000.01 and $500,000,000 0.82% for taxable gross receipts between $500,000,000.01 and $1,000,000,000 0.82% for taxable gross receipts over $1,000,000,000 (b) “Category 5 Business Activities” has the same meaning as in Section 953.24(b) of Article 12-A-1 of this Business and Tax Regulations Code. (c) The amount of taxable gross receipts from Category 5 Business Activities subject to the homelessness gross receipts tax shall be three-quarters of the amount determined under Section 956.1 of Article 12-A-1 plus one-quarter of the amount determined under Section 956.2 of Article 12-A-1. (Added by Proposition M, 11/5/2024, Eff. 12/20/2024)

CATEGORY 6 BUSINESS ACTIVITIES. (a) The homelessness gross receipts tax rates applicable to Category 6 Business Activities for tax years beginning on or after January 1, 2025 are: 0% for taxable gross receipts between $0 and $1,000,000 0% for taxable gross receipts between $1,000,000.01 and $2,500,000 0% for taxable gross receipts between $2,500,000.01 and $25,000,000 1.148% for taxable gross receipts between $25,000,000.01 and $50,000,000 1.476% for taxable gross receipts between $50,000,000.01 and $75,000,000 1.476% for taxable gross receipts between $75,000,000.01 and $100,000,000 1.64% for taxable gross receipts between $100,000,000.01 and $150,000,000 1.64% for taxable gross receipts between $150,000,000.01 and $250,000,000 1.64% for taxable gross receipts between $250,000,000.01 and $500,000,000 1.64% for taxable gross receipts between $500,000,000.01 and $1,000,000,000 1.64% for taxable gross receipts over $1,000,000,000 (b) “Category 6 Business Activities” has the same meaning as in Section 953.25(b) of Article 12-A-1 of this Business and Tax Regulations Code. (c) The amount of taxable gross receipts from Category 6 Business Activities subject to the homelessness gross receipts tax shall be three-quarters of the amount determined under Section 956.1 of Article 12-A-1 plus one-quarter of the amount determined under Section 956.2 of Article 12-A-1. (Added by Proposition M, 11/5/2024, Eff. 12/20/2024)

CATEGORY 7 BUSINESS ACTIVITIES. (a) The homelessness gross receipts tax rates applicable to Category 7 Business Activities for tax years beginning on or after January 1, 2025 are: 0% for taxable gross receipts between $0 and $1,000,000 0% for taxable gross receipts between $1,000,000.01 and $2,500,000 0% for taxable gross receipts between $2,500,000.01 and $25,000,000 0.328% for taxable gross receipts between $25,000,000.01 and $50,000,000 0.492% for taxable gross receipts between $50,000,000.01 and $75,000,000 0.492% for taxable gross receipts between $75,000,000.01 and $100,000,000 0.656% for taxable gross receipts between $100,000,000.01 and $150,000,000 0.656% for taxable gross receipts between $150,000,000.01 and $250,000,000 0.738% for taxable gross receipts between $250,000,000.01 and $500,000,000 0.738% for taxable gross receipts between $500,000,000.01 and $1,000,000,000 0.82% for taxable gross receipts over $1,000,000,000 (b) “Category 7 Business Activities” has the same meaning as in Section 953.26(b) of Article 12-A-1 of this Business and Tax Regulations Code. (c) Except as otherwise provided in subsection (d), the amount of taxable gross receipts from Category 7 Business Activities subject to the homelessness gross receipts tax shall be the total amount of gross receipts derived from or related to real properties located within the City. (d) The amount of taxable gross receipts determined under subsection (c) shall be reduced by any amounts that were included in a person or combined group’s gross receipts under subsection (c) and that the person or combined group paid to a subcontractor for work related to the real properties located with the City during the tax year. There shall be no deduction for any other costs, including without limitation costs for materials, fees, equipment, or other services. To claim such a deduction, a person must maintain an itemized schedule of payments to subcontractors. (Added by Proposition M, 11/5/2024, Eff. 12/20/2024)

For tax years beginning on or after January 1, 2025, notwithstanding Sections 2804.1 through 2804.8 and in lieu of the other taxes imposed under Sections 2804.1 through 2804.8, every person engaging in business within the City as an administrative office, as defined in Section 953.8 of Article 12-A-1, shall pay an annual homelessness administrative office tax in the manner set forth in Section 953.8, except that the homelessness administrative office tax rate shall be 1.5%. (Added by Proposition M, 11/5/2024, Eff. 12/20/2024)

MULTIPLE BUSINESS ACTIVITY CATEGORIES. For tax years beginning on or after January 1, 2025, if a person, or a combined group as described in Section 956.3 of Article 12-A-1 of this Business and Tax Regulations Code, derives gross receipts from more than one of Business Activity Categories 1 through 7, inclusive: (a) If the person or combined group has $10,000 or less in gross receipts from any one of Business Activity Categories 1 through 7, inclusive, before allocating or apportioning gross receipts under Section 956 of Article 12-A-1, such person or combined group may

combine those gross receipts for all purposes related to computing the homelessness gross receipts tax with the gross receipts from whichever of Business Activity Categories 1 through 7, inclusive, generated the most gross receipts for the person or combined group, before allocating or apportioning gross receipts under Section 956. If there is no Business Activity Category that generated the most gross receipts for the person or combined group because the person or combined group generated the same amount of gross receipts from one or more Business Activity Categories, then such person or combined group may combine the gross receipts in this subsection (a) for all purposes related to computing the homelessness gross receipts tax with the gross receipts from whichever Business Activity Category has the highest rates among the Business Activity Categories that generated the same amount of gross receipts. (b) If the person or combined group continues to derive gross receipts from more than one of Business Activity Categories 1 through 7, inclusive, after applying subsection (a) of this Section 2804.10, then such person or combined group shall separately compute the homelessness gross receipts tax for each Business Activity Category as provided in the Section applicable to that particular Business Activity Category as follows: (1) The small business exemption provided in Section 2805.4 shall apply only if the sum of receipts within the City from all Business Activity Categories does not exceed the applicable threshold in Section 2805.4 in total; and (2) The homelessness gross receipts tax liability for the person or combined group shall be the sum of the liabilities for each Business Activity Category. (Added by Proposition M, 11/5/2024, Eff. 12/20/2024)

BUSINESS ACTIVITIES OUTSIDE THE CITY. (a) Notwithstanding any other provision of this Article 28, any person subject to the homelessness gross receipts tax who derives non- exempt gross receipts from business activities within the City and derives no gross receipts from business activities outside the City is subject to tax on all non-exempt gross receipts. (b) This Section 2804.11 shall apply to tax years beginning on or after January 1, 2025. (Added by Proposition M, 11/5/2024, Eff. 12/20/2024) SEC. 2805. EXEMPTIONS AND EXCLUSIONS. (a) An organization that is exempt from income taxation by Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the California Revenue and Taxation Code or Subchapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, as amended, as qualified by Sections 502, 503, 504, and 508 of the Internal Revenue Code of 1986, as amended, shall be exempt from taxation under this Article 28, only so long as those exemptions continue to exist under state or federal law. (b) For only so long as and to the extent that the City is prohibited from imposing the Homelessness Gross Receipts Tax, any person upon whom the City is prohibited under the Constitution or laws of the State of California or the Constitution or laws of the United States from imposing the Homelessness Gross Receipts Tax shall be exempt from the Homelessness Gross Receipts Tax. (c) For purposes of this Article 28, gross receipts shall not include receipts that are excluded from gross receipts for purposes of the gross receipts tax imposed by Article 12-A-1, and also shall not include receipts subject to a gross receipts tax on commercial rents imposed as a result of a measure adopted by the voters of San Francisco in the June 5, 2018 election. (d) This Section 2805 shall apply to tax years ending on or before December 31, 2024. (Added by Proposition C, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2019; amended by Proposition M, 11/5/2024, Eff. 12/20/2024)

(a) Any person or combined group that meets the requirements of subsection (b) for a tax year shall be allowed a non-refundable credit against that person or combined group’s Homelessness Gross Receipts Tax liability for that tax year equal to 10% of the amount specified under Section 2805.1(b)(1). (b) To qualify for the credit in subsection (a), a person or combined group must, between January 1 of the tax year following the tax year for which the credit is being claimed and the date the person or combined group timely files its original annual tax return, enter into a binding agreement with the City, in substantially the form of the agreement included in Board of Supervisors File No. 190092, in which:

(1) The person, or each person in the combined group that is engaging in business within the City, irrevocably, fully, and unconditionally waives and releases its right to a refund (whether by return of payment, credit, offset, carryforward, or otherwise) of a specified amount of the Homelessness Gross Receipts Taxes reported on the person or combined group’s originally-filed Homelessness Gross Receipts Tax return for the tax year for which the person or combined group is claiming the credit based on either or both of the following: (A) Any argument that the Homelessness Gross Receipts Tax Ordinance required at least a two-thirds vote of the electorate to pass. (B) Any lawsuit challenging the Homelessness Gross Receipts Tax Ordinance or any other initiative tax measure in San Francisco or elsewhere in California that invalidates the Homelessness Gross Receipts Tax Ordinance or similar initiative tax measure because it was not passed by at least a two-thirds vote of the electorate. (2) Notwithstanding Section 6.22-1 of the Business and Tax Regulations Code or any other provision of law that would limit public disclosure, the person or each person in the combined group that is engaging in business within the City waives any right to confidentiality in the aggregate amount of Homelessness Gross Receipts Tax liability subject to waiver under all agreements described in Section 2805.1(b) of all persons and combined groups, regardless of the number of persons or combined groups that enter into such agreements. Nothing in this subsection (b)(2) shall constitute a waiver of the confidentiality of the information in the person or combined group’s Homelessness Gross Receipts Tax return, or the terms of each agreement under Section 2805.1(b), other than the aggregate amount of Homelessness Gross Receipts Tax liability subject to waiver under all agreements described in Section 2805.1(b) of all persons and combined groups. (3) The person, or each person in the combined group that is engaging in business within the City, agrees to indemnify the City if, subsequent to the person or combined group entering into the agreement, there are additional persons determined to have been engaging in business within the City as a member of the combined group for that tax year and such additional person or persons requests a refund (whether by return of payment, credit, offset, carryforward, or otherwise) of all or any portion of the amount waived under Section 2805.1(b)(1) for the tax year for which the person or combined group is claiming the credit in contravention of Section 2805.1(d). (c) If a person or combined group enters into an agreement described in subsection (b), but does not claim the credit authorized by this Section 2805.1, the person or combined group shall remain subject to the terms of the agreement. (d) Any person determined to have been engaging in business within the City as a member of a combined group for a tax year after that combined group entered into an agreement described in subsection (b) for that tax year shall be deemed to have entered into the agreement and shall be subject to the terms of the agreement as if it had executed the agreement itself. (e) The Tax Collector shall verify that any credit claimed pursuant to this Section 2805.1 is correct. (f) The tax credit authorized by this Section 2805.1 shall be effective for tax year 2019 and each subsequent tax year, but shall expire by operation of law and not be available for the tax year and all subsequent tax years from the earlier of: (1) The tax year in which San Francisco Superior Court Case No. CGC-19-573230 (City and County of San Francisco v. All persons interested in the matter of Proposition C on the November 6, 2018 San Francisco ballot, authorizing an increase in specified business taxes to fund specified homeless services in San Francisco, and all other matters and proceedings relating thereto), is finally resolved; and (2) Tax year 2024. No person or combined group may claim the credit authorized by this Section for the tax year in which San Francisco Superior Court Case No. CGC-19-573230 is finally resolved or in any tax year thereafter, or for any tax year commencing on or after January 1, 2024, whichever is earlier. (g) The Board of Supervisors hereby authorizes the Tax Collector to enter into the agreements described in subsection (b), in substantially the form included in Board of Supervisors File No. 190092, and authorizes the Tax Collector, in consultation with the City Attorney and the Controller, to agree to changes to the agreements that do not materially decrease the benefits to the City or materially increase the obligations to the City. (Added by Ord. 73-19, File No. 190092, App. 4/26/2019, Eff. 5/27/2019)

(a) Any person that, on or before the expiration of this Section 2805.2, makes an irrevocable gift to the Our City, Our Home Fund (established in Administrative Code Section 10.100-164) shall be allowed a non-refundable credit against the Homelessness Gross Receipts Tax liability of that person or the combined group of which that person is a part. (b) The credit authorized by this Section 2805.2 shall equal 110% of the amount of the irrevocable gift made under subsection (a). (c) If the irrevocable gift described in subsection (a) is made between January 1 and the date the person or combined group timely files its original annual tax return, the credit authorized by this Section 2805.2 shall be available for the tax year prior to the calendar year in which the person makes the irrevocable gift. If the irrevocable gift is made at any other time during the tax year, the credit authorized by this Section shall be available for the tax year in which the irrevocable gift is made. The person making the irrevocable

gift may carry forward any unused portion of this credit to future tax years up to and including tax year 2025 to be used against the future Homelessness Gross Receipts Tax liability of the person or the combined group of which that person is a part in that future tax year. No part of this credit may be carried forward to tax years commencing on or after January 1, 2026. (d) The Tax Collector shall verify that any credit claimed pursuant to this Section 2805.2 is correct. (e) Notwithstanding Administrative Code Section 10.100-305 or any other provision of the Municipal Code restricting the department’s acceptance of gifts, the Office of the Treasurer and Tax Collector is authorized to accept the gifts described in subsection (a) of this Section 2805.2. (f) This Section 2805.2 shall expire by operation of law and shall not be available for irrevocable gifts made on or after the earlier of: (1) The date on which San Francisco Superior Court Case No. CGC-19-573230 (City and County of San Francisco v. All persons interested in the matter of Proposition C on the November 6, 2018 San Francisco ballot, authorizing an increase in specified business taxes to fund specified homeless services in San Francisco, and all other matters and proceedings relating thereto) is finally resolved; and (2) January 1, 2024. Any irrevocable gift made to the Our City, Our Home Fund on or after the date on which San Francisco Superior Court Case No. CGC-19-573230 is finally resolved, or on or after January 1, 2024, whichever is earlier, shall not entitle the person making the irrevocable gift to the credit described in this Section 2805.2. (Added by Ord. 73-19, File No. 190092, App. 4/26/2019, Eff. 5/27/2019)

(a) An organization that is exempt from income taxation by Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the California Revenue and Taxation Code or Subchapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, as amended, as qualified by Sections 502, 503, 504, and 508 of the Internal Revenue Code of 1986, as amended, shall be exempt from taxation under this Article 28, only so long as those exemptions continue to exist under state or federal law. (b) For purposes of this Article 28, gross receipts as defined in Section 952.3 shall not include receipts from business activities if, and only so long as and to the extent that, the City is prohibited from taxing such receipts under the Constitution or laws of the United States or under the Constitution or laws of the State of California. (c) Rent Controlled Buildings Exclusion. A person subject to the homelessness gross receipts tax may exclude from gross receipts in any tax year 50% of the total amount received from the rental of real property to tenants in occupancy at any location in the City, which is subject to limits on rent increases pursuant to the Residential Rent Stabilization and Arbitration Ordinance, Administrative Code, Chapter 37, Section 37.1 et seq. (d) Exclusion of Certain Sales of Real Property. For purposes of this Article 28, gross receipts as defined in Section 952.3 shall not include receipts from any sales of real property with respect to which the Real Property Transfer Tax imposed by Article 12-C has been paid to the City. (e) For only so long as and to the extent that the City is prohibited from imposing the tax under this Article 28, the following persons shall be exempt from the homelessness gross receipts tax: (1) Banks and financial corporations exempt from local taxation under Article XIII, Section 27 of the California Constitution and Revenue and Taxation Code Section 23182; (2) Insurance companies exempt from local taxation under Article XIII, Section 28 of the California Constitution; (3) Persons engaging in business as a for-hire motor carrier of property under Revenue and Taxation Code Section 7233; (4) Persons engaging in intercity transportation as a household goods carrier under Public Utilities Code Section 5327; (5) Charter-party carriers operating limousines that are neither domiciled nor maintain a business office within the City under Public Utilities Code Section 5371.4; and (6) Any person upon whom the City is prohibited under the Constitution or laws of the State of California from imposing the homelessness gross receipts tax. (f) For purposes of this Article 28, gross receipts shall not include receipts subject to the Early Care and Education Commercial Rents Tax under Article 21 of this Business and Tax Regulations Code. (g) This Section 2805.3 shall apply to tax years beginning on or after January 1, 2025. (Added by Proposition M, 11/5/2024, Eff. 12/20/2024)

(a) Notwithstanding any other provision of this Article 28, a person or combined group exempt from payment of the gross receipts tax under Section 954.1 of Article 12-A-1, as amended from time to time, shall also be exempt from payment of the homelessness gross receipts tax. (b) This Section 2805.4 shall apply to tax years beginning on or after January 1, 2025. (Added by Proposition M, 11/5/2024, Eff. 12/20/2024) SEC. 2806. COMBINED RETURNS. (a) Persons subject to the Homelessness Gross Receipts Tax shall file returns at the same time and in the same manner as returns filed for the gross receipts tax imposed by Article 12-A-1, including the rules for combined returns under Section 956.3, as amended from time to time. (b) If a person is subject to the Homelessness Gross Receipts Tax but is not required to file a gross receipts tax return under Article 12-A-1, such person or combined group’s Homelessness Gross Receipts Tax return shall be filed at the same time and in the same manner as if such person or combined group were required to file a gross receipts tax return under Article 12-A-1. (c) For purposes of this Article 28, a lessor of residential real estate is treated as a separate person with respect to each individual building in which it leases residential real estate units, notwithstanding Section 6.2-15 of Article 6, as amended from time to time, or subsection (a) of this Section 2806. This subsection (c) applies only to leasing residential real estate units within a building, and not to any business activity related to other space, either within the same building or other buildings, which is not residential real estate. The Tax Collector is authorized to determine what constitutes a separate building and the number of units in a building. (Added by Proposition C, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2019) SEC. 2807. TAX COLLECTOR AUTHORIZED TO DETERMINE GROSS RECEIPTS. (a) For tax years ending on or before December 31, 2024, the Tax Collector may, in his or her reasonable discretion, independently establish a person or combined group’s gross receipts within the City and establish or reallocate gross receipts among related entities so as to fairly reflect the gross receipts within the City of all persons and combined groups. (b) For tax years beginning on or after January 1, 2025, the Tax Collector shall have the same authority with respect to the homelessness gross receipts tax as the Tax Collector has with respect to the gross receipts tax under Section 957 of Article 12-A-1 of this Business and Tax Regulations Code. (Added by Proposition C, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2019; amended by Proposition M, 11/5/2024, Eff. 12/20/2024) SEC. 2808. CONSTRUCTION AND SCOPE OF THE HOMELESSNESS GROSS RECEIPTS TAX ORDINANCE. (a) This Article 28 is intended to authorize application of the Homelessness Gross Receipts Tax in the broadest manner consistent with its provisions and with the California Constitution, the United States Constitution, and any other applicable provision of federal or state law. (b) The Homelessness Gross Receipts Tax imposed by this Article 28 is in addition to all other City taxes, including the gross receipts tax imposed by Article 12-A-1, as amended from time to time. Accordingly, by way of example and not limitation, persons subject to both the Homelessness Gross Receipts Tax and the gross receipts tax shall pay both taxes. Persons exempt from either the gross receipts tax or the Homelessness Gross Receipts Tax, but not both, shall pay the tax from which they are not exempt. (Added by Proposition C, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2019)

SEC. 2809. ADMINISTRATION OF THE HOMELESSNESS GROSS RECEIPTS TAX ORDINANCE. Except as otherwise provided under this Article 28, the Homelessness Gross Receipts Tax Ordinance shall be administered pursuant to Article 6 of the Business and Tax Regulations Code, as amended from time to time, including all penalties and other charges imposed by that Article. (Added by Proposition C, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2019) SEC. 2810. DEPOSIT OF PROCEEDS; EXPENDITURE OF PROCEEDS. (a) All monies collected under the Homelessness Gross Receipts Tax Ordinance shall be deposited to the credit of the Our City, Our Home Fund, established in Administrative Code Section 10.100-164. The Fund shall be maintained separate and apart from all other City funds and shall be subject to appropriation. Any balance remaining in the Fund at the close of any fiscal year shall be deemed to have been provided for a special purpose within the meaning of Charter Section 9.113(a) and shall be carried forward and accumulated in the Fund for the purposes described in subsection (b)(3). (b) Subject to the budgetary and fiscal provisions of the Charter, monies in the Our City, Our Home Fund shall be appropriated on an annual or supplemental basis and used exclusively for the following purposes: (1) Up to 3% of the proceeds of the Homelessness Gross Receipts Tax distributed in any proportion to the Tax Collector and other City departments, for administration of the Homelessness Gross Receipts Tax and administration of the Our City, Our Home Fund for the following purposes: (A) Payment of the administrative expenses of collecting the Homelessness Gross Receipts Tax; (B) Payment for City oversight of the expenditures described in this subsection (b); and (C) Payment for City expenses providing support for the Our City, Our Home Oversight Committee, including but not limited to payments for the needs assessments described in Section 2810(e)(2)(B). (2) Refunds of any overpayments of the Homelessness Gross Receipts Tax, including any related penalties, interests, and fees. (3) All remaining amounts for the following purposes, in the following percentages, which amounts shall include the costs of administering the programs described. (A) Permanent Housing Expenditures. At least 50% to the Mayor’s Office of Housing and Community Development (“MOHCD”), or its successor agency, for uses consistent with the Homelessness Gross Receipts Tax Ordinance that help Homeless adults, families, or youth, including but not limited to Homeless persons with mental illness or addiction, permanently exit homelessness and secure permanent housing. Every reasonable effort shall be made to ensure that Homeless persons with barriers to housing, including but not limited to a lack of identification and documentation, are able to access housing made available under this subsection (A). Uses under this subsection (A) shall be limited to: (i) Short-term rental subsidies, expenditures for which shall be limited to no more than 12% of this subsection (A). For purposes of this subsection (i), “short-term” means a period that is five years or less. (ii) Construction, acquisition, rehabilitation, lease, preservation, and operation of permanent supportive housing units. For purposes of this subsection (ii), “permanent supportive housing” means housing that provides a rental subsidy and onsite supportive services for formerly Homeless adults, families, and youth. (iii) Acquisition, rehabilitation, master lease, and operation of SRO Buildings, or portions thereof, newly acquired or master leased on or after January 1, 2019, and the associated protection of extremely low- and very low-income households, especially households with seniors, veterans, persons with disabilities, or immigrants. Existing, higher-income households may retain occupancy in SRO Buildings, under the program’s goal of preventing displacement. Any vacant unit in an SRO Building may be used for the purpose of housing Homeless individuals or families. Long-term rental subsidies shall be an eligible use of funds under this subsection (iii). For purposes of this subsection (iii) the following terms shall have the following meanings: (aa) “Area Median Income” means the area median income for the United States Department of Housing and Urban Development (“HUD”) Metro Fair Market Rent Area (“HFMA”) that includes San Francisco, as published annually by MOHCD, adjusted for household size. If HFMA data is unavailable, MOHCD shall calculate area median income using other publicly available and credible data. (bb) “Extremely low- and very low-income households” means households that earn up to 50% of Area Median Income. (cc) “Long-term” means a period that is longer than five years. (dd) “Master lease” means a nonprofit or governmental entity leasing dedicated housing units from a property owner and, in

turn, leasing those units to residents. MOHCD shall enter into an agreement with HSH, or its successor agency, that requires at least 20% of the total amounts appropriated under this subsection (A) be used for the purposes described in this subsection (A) that support Homeless youth aged 18 through 29, and at least 25% of the total amounts appropriated under this subsection (A) be used for the purposes described in this subsection (A) that support Homeless families with children under age 18 at the time of entry into housing. (B) Homeless Shelter Expenditures. Up to 10% to HSH, or its successor agency, for uses consistent with the Homelessness Gross Receipts Tax Ordinance that help Homeless adults, families, or youth, including but not limited to Homeless persons with mental illness or addiction, secure short-term residential shelter, including but not limited to funding navigation centers and shelters, and to fund Hygiene Programs. For purposes of this subsection (B), “Hygiene Programs” means any program that provides bathrooms, handwashing stations, and/or showers intended for use by those who do not have access to those facilities. (C) Homelessness Prevention Expenditures. Up to 15% to MOHCD and/or HSH, or their successor agencies, for the provision of services to those at risk of becoming Homeless or who recently have become Homeless. These services are limited to providing financial, utility, and/or Rental Assistance; flexible funding (e.g., security deposit, expenses necessary to maintain housing); short-term case management; conflict mediation; legal representation in eviction cases; connection to mainstream services (e.g., services from agencies outside of the homeless assistance system, such as public benefit agencies); housing search assistance; and assistance to newly Homeless families and individuals to identify immediate alternate housing arrangements. Every reasonable effort shall be made to ensure that financial assistance is available in a timely manner to avoid evictions or displacements. (D) Mental Health Expenditures for Homeless Individuals. At least 25% to the Department of Public Health (“DPH”) for the creation of a new mental health services program or programs that are specifically designed for Homeless people severely impaired by behavioral health issues. Such uses shall be limited to: (i) Intensive street-based mental health services and case management; (ii) Assertive outreach services; (iii) Mental health and substance abuse treatment, including medications; (iv) Peer support; (v) Residential and drop-in services; and (vi) Specialized temporary and long-term housing Rental Assistance, housing linkage, and referrals into supportive housing with continued intensive case management and mental health services that follow people from homelessness into housing. Nothing in this subsection (D) shall prevent DPH from using allocations pursuant to this subsection (D) to acquire or lease facilities to provide the mental health services described herein. (E) Determination of Appropriations; Remaining Amounts. The Board of Supervisors shall determine how much to appropriate to each of Sections 2810(b)(3)(A) through (D), in accordance with those Sections. Any amounts remaining in the Our City, Our Home Fund at the end of any fiscal year shall be held in the Our City, Our Home Fund to be added to amounts available for appropriation under Section 2810 (b)(3) in any future year. (c) Commencing with a report filed no later than February 15, 2020, covering the fiscal year ending on June 30, 2019, the Controller shall file annually with the Board of Supervisors, by February 15 of each year, a report containing the amount of monies collected in and expended from the Our City, Our Home Fund during the prior fiscal year, the status of any project required or authorized to be funded by this Section 2810, and such other information as the Controller, in the Controller’s sole discretion, shall deem relevant to the operation of this Article 28. (d) Appropriations May Not Supplant Existing Expenditures. Monies in the Our City, Our Home Fund shall be expended only for Eligible Programs. Monies in the Our City, Our Home Fund shall not be spent to supplant existing programs funded by the City for homeless programs, which shall continue to be funded, at a minimum, at the Base Amount. All funds unexpended from the Our City, Our Home Fund shall be held in the Our City, Our Home Fund and may be expended on Eligible Programs in any future fiscal year in which other expenditures from the Our City, Our Home Fund may be made. For purposes of this subsection (d): (1) “Base Amount”means the Controller’s calculation of the amount of City appropriations (not including appropriations from the Our City, Our Home Fund and exclusive of expenditures funded by private funding or funded or mandated by state or federal law) for Eligible Programs for the fiscal year ending June 30, 2018. (2) “Eligible Programs” means all programs and expenditures described in Section 2810(b)(3). (e) Our City, Our Home Oversight Committee. (1) By February 28, 2019, the Board of Supervisors shall establish by ordinance the Our City, Our Home Oversight Committee (“Oversight Committee”) to make recommendations to the Mayor, the Board of Supervisors, the Health Commission, and the Homelessness Oversight Commission to ensure that the Our City, Our Home Fund is administered in a manner consistent with the provisions of this Section 2810. (2) The purpose of the Oversight Committee shall be to monitor and make recommendations in the administration of the Our City, Our Home Fund, to take steps to ensure that the fund is administered in a manner accountable to the community and consistent with the law, and to advise the Board of Supervisors, the Hea

administered in a manner consistent with the provisions of this Section 2810. (2) The purpose of the Oversight Committee shall be to monitor and make recommendations in the administration of the Our City, Our Home Fund, to take steps to ensure that the fund is administered in a manner accountable to the community and consistent with the law, and to advise the Board of Supervisors, the Health Commission, and the Homelessness Oversight Commission on appropriations from the Our City, Our Home Fund. As part of this purpose, the Oversight Committee shall:

(A) Develop recommendations for prioritizing the use of funds appropriated from the Our City, Our Home Fund; (B) By December 31, 2019, and every three years thereafter, conduct a needs assessment with respect to homelessness and Homeless populations, including but not limited to an assessment of available data on subpopulations with regard to race, family composition, sexual orientation, age, and gender served by the programs and expenditures described in Section 2810(b)(3), and make annual recommendations about appropriations from the Our City, Our Home Fund to the Board of Supervisors, the Health Commission, and the Homelessness Oversight Commission consistent with that needs assessment, and such needs assessment shall inform the Department of Homelessness and Supportive Housing’s strategic planning process; (C) Promote and facilitate transpar- ency in the administration of the Our City, Our Home Fund. (D) Promote implementation of the programs funded by the Our City, Our Home Fund in a culturally sensitive manner. (3) Voting Members. (A) The Oversight Committee shall have nine voting members. (i) Seats one, three, five, and seven shall be appointed by the Mayor under Charter Section 3.100(18). (ii) Seats two, four, six, and eight shall be appointed by the Board of Supervisors. (iii) Seat nine shall be appointed by the Controller. (B) Eligibility. (i) Seat one shall be an individual with experience with Homeless housing development or supportive housing services. (ii) Seat two shall be an individual representing families with minor children residing in SRO Units or a family member residing in a SRO Unit. (iii) Seat three shall be an individual with experience providing Homeless services. (iv) Seat four shall be an individual who has experienced homelessness and also has experience advocating for Homeless people. (iv)1 Seat five shall be an individual with mental health service and/or substance abuse expertise. (v) Seats six and seven shall be individuals who have personally experienced homelessness. (vi) Seat eight shall be an individual who has experience advocating on Homeless or mental health issues. (vii) Seat nine shall be an at large seat. (C) Term. The terms of the initial appointees to the Oversight Committee shall commence on the date of the first meeting of the committee, which shall occur when at least six members have been appointed and are present, but no later than February 28, 2019. The initial terms of odd numbered seats shall be three years, and two years following the initial three-year term. Even numbered seats shall have two-year terms. (4) The City shall provide adequate dedicated staffing to the Oversight Committee. (5) The Oversight Committee shall meet at least six times during each fiscal year, except for the fiscal year ending June 30, 2019, during which the Oversight Committee shall meet at least twice. (g)1 Nothing in this Section 2810 shall limit the authority of the Mayor and the Board of Supervisors to propose, amend, and adopt a budget under Article IX of the Charter. (h) For purposes of this Section 2810: (1) “Homeless” means an individual or family that lacks a fixed, regular, and adequate nighttime residence, and whose primary nighttime residence is one or more of the following: a shelter; a sidewalk or street; outdoors; a vehicle; a structure not certified or fit for human residence, such as an abandoned building; a couch used for sleeping in accommodations that are inadequate or overly crowded; a SRO Unit in which one or more family members are under the age of 18; a transitional housing program; or in such other location that is unsafe or unstable. (2) “Single Room Occupancy (SRO) Unit” or “SRO Unit” means a dwelling unit or group housing room consisting of no more than one occupied room with a maximum gross floor area of 350 square feet and meeting the Housing Code’s minimum floor area standards. The unit may have a bathroom in addition to the occupied room. As a dwelling unit, it would have a cooking facility and bathroom. As a group housing room, it would share a kitchen with one or more other single room occupancy unit(s) in the same building and may also share a bathroom. A Single Room Occupancy Building (or “SRO Building”) is one in which at least 50% of the units are SRO Units. (3) “Rental Assistance” means rental subsidies or nonprofit housing operating subsidies that help Homeless people find housing and stabilize in housing in which they are the leaseholders. (Added by Proposition C, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2019; amended by Ord. 23-23, File No. 221246, App. 2/23/2023, Eff. 3/26/2023; Ord. 35-23, File No. 230125, App. 3/17/2023, Eff. 4/17/2023) CODIFICATION NOTE

1. So in Prop. C, 11/6/2018.

SEC. 2811. AMENDMENT OF ORDINANCE. The Board of Supervisors may amend this Article 28 by ordinance by a two-thirds vote but only to further the Findings and intent as set for the 1 in Section 2802. (Added by Proposition C, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2019) CODIFICATION NOTE

1. So in Prop. C, 11/6/2018. SEC. 2812. EFFECT OF STATE AND FEDERAL AUTHORIZATION. To the extent that the City’s authorization to impose or to collect any tax imposed under this Article 28 is expanded or limited as a result of changes in state or federal statutes, regulations, or other laws, or judicial interpretations of those laws, no amendment or modification of this Article shall be required to conform the taxes to those changes, and the taxes are hereby imposed in conformity with those changes, and the Tax Collector shall collect them to the full extent of the City’s authorization up to the full amount and rate of the taxes imposed under this Article. (Added by Proposition C, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2019) SEC. 2813. SEVERABILITY. (a) Except as provided in Section 2813(b), below, if any section, subsection, sentence, clause, phrase, or word of this Article 28, or any application thereof to any person or circumstance, is held to be invalid or unconstitutional by an unappealable decision of a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions or applications of this Article. The People of the City and County of San Francisco hereby declare that, except as provided in Section 2813(b), they would have adopted this Article 28 and each and every section, subsection, sentence, clause, phrase, and word not declared invalid or unconstitutional without regard to whether any other portion of this Article or application thereof would be subsequently declared invalid or unconstitutional. (b) If the imposition of the Homelessness Gross Receipts Tax in Section 2804 for tax years ending on or before December 31, 2024, or in Sections 2804.1 through 2804.11, inclusive, for tax years beginning on or after January 1, 2025, is held in its entirety to be facially invalid or unconstitutional in a final unappealable court determination, the remainder of this Article 28 shall be void and of no force and effect, and the City Attorney shall cause it to be removed from the Business and Tax Regulations Code, and likewise cause Section 10.100-164 to be removed from the Administrative Code. (Added by Proposition C, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2019; amended by Proposition M, 11/5/2024, Eff. 12/20/2024) SEC. 2814. SAVINGS CLAUSE. No section, clause, part, or provision of this Article 28 shall be construed as requiring the payment of any tax that would be in violation of the Constitution or laws of the United States or of the Constitution or laws of the State of California. (Added by Proposition C, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2019)