- The tax, which would begin in 2022, would apply to companies with revenues or gross receipts within San Francisco higher than $1.17 million.
- The tax scales up based pay ratio (e.g., 0.1% of gross receipts for a pay ratio of 100:1, 0.2% for 200:1, up to 0.6% of gross receipts for a pay ratio of 600:1).
- Executive compensation is defined as including wages, salaries, commissions, bonuses and property issued in exchange for services (such as stock options).
The city expects to generate an additional $60 to $140 million in additional taxes through the provision. Tech is expected to account for 17% of the tax revenues, according to an estimate by the city’s chief economist, while retail and financial firms are expected to account for 23% of the revenues each.