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"The tax will levy an extra 0.1% to 0.6% on gross receipts made in San Francisco" What counts as "made in San Francisco"? It doesn't seem like that definition
by cactus2093 6y ago
"The tax will levy an extra 0.1% to 0.6% on gross receipts made in San Francisco"
What counts as "made in San Francisco"? It doesn't seem like that definition would apply to online revenue for e.g. a SAAS company or social media site. It would still apply to some tech companies, those with a physical presence like Uber or AirBnb are more clear.
So is Salesforce in the clear for this tax, or perhaps they are only taxed on the revenue that comes from sales to other businesses who are themselves in SF? (And what if those businesses have multiple offices?). Seems quite complex and probably pretty easy to get out of with some accounting tricks. I guess this is a progressive SF law that really isn't targeting tech companies, for once?
On the other hand, it clearly will apply to every national chain retail store, restaurant, etc. And if so, all of their local mom-and-pop competitors will get a slight leg up from this in addition to raising the revenue from the tax. If I'm understanding this right I guess it might not be the worse idea.