Weekly Round-Up: San Francisco: The City That Knows How…to Tax?

San Francisco has been known as “the city that knows how” because of its ability to rebuild and rebrand in the wake of the devastation caused by the earthquake and fire of 1906, Alex Thacher, Allan Holzer and Michael Williams, all with Ernst & Young LLP, write in this week’s issue of the Bloomberg BNA Weekly State Tax Report.

"In a similar fashion, in the wake of citizen concern over how its payroll expense tax regime was affecting job creation and growth, the City redefined its tax code, shifting the tax base from payroll expense to business gross receipts,” according to the authors.  The gross receipts tax will be phased in over five years, beginning Jan. 1, 2014.

In their article, which can be read in its entirety here, the authors provide a historical background and overview of the tax, including who is subject to tax, what constitutes a “gross receipt,” the rates applicable to the different types of businesses, apportionment and the combined filing requirement.

For more information about this and other state tax issues, sign up for a free trial of the Bloomberg BNA Premier State Tax Library. 

In other developments…

$150 million of California Competes credits announced, applications begin September 29, 2014, other changes enacted, by PwC

Congress Cries Wolf Over Internet Access Taxes, by The Tax Policy Center, a joint venture of the Urban Institute and Brookings Institution

“April Surprises” Left Many States with Bad News, by The Nelson A. Rockefeller Institute of Government

Compiled by Priya D. Nair

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