San Francisco Sun

The Board of Supervisors in San Francisco has approved legislation introduced by Mayor London N. Breed, aimed at eliminating annual license fees for small businesses. This move is designed to make it easier for businesses to operate and grow within the city. The proposal was co-authored by Treasurer José Cisneros and Supervisors Rafael Mandelman and Aaron Peskin.

Mayor Breed's initiative is part of an ongoing effort to reduce barriers for businesses across San Francisco. A key component of this strategy was Prop M, a business tax measure passed in November, which cuts taxes for numerous small businesses. Revenue from Prop M will cover the permitting costs that were previously paid by these businesses, with fee eliminations starting in 2026.

The legislation, developed with input from various city offices and business stakeholders, waives 49 annual license fees indefinitely. This change is expected to provide $10 million annually in relief to local business owners.

“To help small businesses, we’ve cut red tape, we’ve cut taxes, we’ve improved public safety, and now we are cutting more fees,” stated Mayor Breed. She highlighted past efforts such as Prop H in 2020 that reduced permitting times as part of a broader transformation to support small enterprises.

Currently, small business owners face multiple annual fees related to operations like outdoor seating or extended hours. With the new legislation's passage, 91% of restaurants and 87% of bars and nightclubs will no longer receive these bills from the city.

Laurie Thomas from the Golden Gate Restaurant Association expressed gratitude towards those involved in recognizing and addressing the needs of the business community: “The elimination of numerous annual license fees will truly benefit small businesses in San Francisco.”

These fees have disproportionately affected smaller establishments since they cost the same regardless of a business's size. In contrast, business taxes are progressive under Prop M’s framework.

Treasurer José Cisneros remarked on the significance of this legislative change: "Cutting $10 million a year in costs for small businesses is a big win for our City."

District 8 Supervisor Rafael Mandelman emphasized how this aligns with post-pandemic recovery strategies: “Small business is the beating heart of our neighborhoods... helping these businesses thrive supports San Francisco’s recovery.”

Sarah Dennis Phillips from OEWD noted that removing flat fees aids both current operators and potential entrepreneurs: “By eliminating these burdensome flat fees... supporting local operators opens doors to new entrepreneurs.”

Katy Tang from OSB added that combined with Prop M’s tax exemption expansion; this measure improves conditions significantly for investment by smaller firms within San Francisco.

This legislation forms part of Mayor Breed’s broader roadmap intended toward facilitating smoother processes around starting or expanding ventures locally through transparency improvements alongside streamlined systems already underway since earlier initiatives like cutting red tape via propositions passed over recent years along easing associated costs/times tied into permits/licenses/business registrations while consolidating agencies under one roof via Permit Center opened back during mid-2021 plus extending First Year Free program waiving initial setup-related expenses till June-end next year benefiting thousands enrolled thus far among others outlined above too!