A 1.5% payroll tax break for companies moving to San Francisco’s Mid-Market neighborhood is getting mixed reviews.
What became known as the Twitter tax break has boosted business activity in the area, but may have also accelerated the area’s problems, according to a report by the San Francisco Chronicle.
The city’s chief economist says that between 2010 and 2017, Mid-Market produced $6 million more in payroll and gross receipts taxes and added $750,000 in sales taxes to the city’s general fund than it would have if it grew at the same rate as the rest of the city.
In that period, 59 new companies large enough to have to report their payrolls to the city either moved to, or were created in, Mid-Market. The number of retailers grew by 3% in the neighborhood while declining by 1% citywide. The cost to the city was $70 million in lost tax revenue.
The negatives:
— Gentrification has led to higher housing costs and the growth of the district’s homeless population by 1,600 people between 2011 and 2017
— Drug dealing has increased in the neighborhood
— Some companies have failed to follow through on promises they made to aid non-profit organizations in the neighborhood
— Retail vacancies continue to plague the district’s main street
The tax break faces a May 20 expiration, and the consensus is that the city no longer needs to give major tech companies targeted tax breaks, the Chronicle reports.
Related Stories
Codes and Standards | Jun 18, 2015
New document addresses school safety and security
In an effort to balance security and fire safety features within codes, standards and planning, NFPA hosted a two-day workshop, “School Safety, Codes and Security”, last December. The findings are now available in an NFPA report.
Codes and Standards | Jun 18, 2015
Two myths regarding NFPA 101 Life Safety Code debunked
NFPA life safety engineer Ron Coté settles the debate over second egress doors and exit signs.
Codes and Standards | Jun 18, 2015
How to prevent corrosion in sprinkler system piping
The technical committees responsible for NFPA 13, Installation of Sprinkler Systems, have been looking at ways to eliminate or reduce corrosion in sprinkler systems for several revision cycles.
Codes and Standards | Jun 11, 2015
Steel Framing Alliance updates ‘Thermal Design and Code Compliance for Cold-Formed Steel Walls’ design guide
Includes results of new tests and addresses IECC and ASHRAE compliance paths.
Codes and Standards | Jun 11, 2015
Helena, Mont., may charge commercial developers a fee to fund public art
The fee would apply to new construction or alteration of nonresidential buildings of at least 20,000 sf.
Codes and Standards | Jun 11, 2015
DBIA releases new document on choosing a project delivery method
Provides owners and others with factors to consider when choosing the best method of delivery for their project.
High-rise Construction | Jun 5, 2015
Japanese policymakers discuss mandate for toilets in elevators
This quirky-sounding building code is a safety measure for the earthquake-prone nation.
Codes and Standards | Jun 4, 2015
OSHA publishes guide to restroom access for transgender workers
The guide advises employers to allow employees to use restrooms that correspond to their gender identity.
Codes and Standards | Jun 4, 2015
Guide helps Building Teams maximize team integration
The guide includes forms to support a two- to four-hour workshop to help an owner select the most appropriate delivery strategy.
Codes and Standards | Jun 4, 2015
NIBS, RICS to explore P3 as tool to achieve high-performance buildings
The idea of applying the P3 concept more to buildings, and especially building performance, is a potentially promising new avenue in the U.S., according to the trade groups.