San Francisco Sun

Mayor London Breed, alongside Treasurer José Cisneros and Supervisors Rafael Mandelman and Aaron Peskin, has introduced legislation aimed at eliminating annual license fees for small businesses in San Francisco. This move is part of Mayor Breed's ongoing efforts to reduce barriers and support small businesses across the city.

The proposed legislation, developed with input from the Treasurer and Tax Collector’s Office, the Office of Economic & Workforce Development (OEWD), its Office of Small Business (OSB), and various small business stakeholders, will waive 49 annual license fees. This change is contingent on the passage of the Proposition M ballot measure and is expected to provide $10 million annually in relief to small business owners in San Francisco.

“San Francisco has been working hard to remove years of built-up red tape to make it easier to thrive as a small business in our City,” said Mayor London Breed. “I have remained committed to changing the narrative that San Francisco is a city of ‘No’ to getting us to a place where we are a city of ‘Yes.’ I will continue to work with our departments to find creative ways to remove barriers and fees for our small business owners.”

Currently, small business owners face significant costs due to various annual fees required for operating establishments such as restaurants, food trucks, bars, and bakeries. These fees include charges for outdoor seating, billiard tables, extended hours, cash registers, and even candles. If this legislation passes, 91% of restaurants and 87% of bars and nightclubs will no longer receive these bills from the City.

“The elimination of numerous annual license fees will truly benefit small businesses in San Francisco,” said Laurie Thomas, Executive Director of the Golden Gate Restaurant Association. “We are grateful to the Mayor, the Office of Economic & Workforce Development, and everyone involved for recognizing the needs of our business community.”

The current fee structure disproportionately impacts smaller businesses since most fees are fixed regardless of business size. In contrast, business taxes are progressive; smaller businesses pay less than larger ones.

“Saving small businesses $10 million a year makes sense for small businesses and for the City,” said Treasurer José Cisneros. “This legislation will overhaul our current fee structure that places a disproportionate financial burden on restaurants and nightlife industry businesses.”

District 8 Supervisor Rafael Mandelman emphasized the importance of supporting local enterprises: “Small business is the beating heart of our neighborhoods... This legislation does just that... I want to thank and congratulate the City Treasurer and Controller for their work.”

Sarah Dennis Phillips from OEWD highlighted how removing these flat fees aligns with progressive tax structures: “Our small-scale enterprises... are driving ground floor revitalization across the City.”

Katy Tang from OSB described this proposal as one of San Francisco’s most significant reforms: “The benefits to small businesses will be meaningful and long-lasting.”

This initiative forms part of Mayor Breed's broader strategy under her Roadmap to San Francisco’s Future plan which aims at simplifying processes for new businesses. Key elements include cutting red tape through legislative changes like Prop H in 2020 or simplifying permitting requirements introduced recently.

Additional measures include easing permitting costs through initiatives like First Year Free program launched in 2021 which waives initial permit fees saving millions collectively among thousands enrolled businesses till date.

###