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
| Feb 17, 2012
AGC advocates for federal procurement reform
Ensure that small business goals take into consideration actual small business capacity in relevant specialty markets.
| Feb 17, 2012
Codes not to blame for Anchorage roof collapses following heavy snows
Design or construction problems likely contributed to the collapses, according to city officials.
| Feb 17, 2012
Comment period opens March 1 for LEED 2012 update
USGBC says that LEED's strength comes from its continuous evolution.
| Feb 17, 2012
OSHA training videos on proper respirator use available online
17 short videos to help workers learn about the proper use of respirators on the job.
| Feb 17, 2012
Union/employer collaboration on the rise aimed at exceeding OSHA safety standards
Unions have learned to help employers win contracts with bids made competitive through good safety practices.
| Feb 16, 2012
Gain greater agility and profitability with ArchiCAD BIM software
White paper was written with the sole purpose of providing accurate, reliable information about critical issues related to BIM and what ArchiCAD with advanced technology such as the GRAPHISOFT BIM Server provide as an answer to address these issues.
| Feb 9, 2012
Initiative to sell off under-used federal property gaining momentum
The bill is similar to a White House planto cut $8 billion worth of building costs by the end of the 2012 fiscal year, and to establish a panel to identify other sites worth selling or donating to nonprofits or state and local governments.
| Feb 9, 2012
Computer tool helps engineers design roof cladding using Canada's building code
Easier to design roof cladding that can withstand winds in a given area.
| Feb 9, 2012
Webinar focuses on lessons learned from LEED-certified industrial project
This case study will focus on strategies used to save the client money, achieve certification, and effectively market success once the project was complete.
