Homelessness Gross Receipts Tax (HGR)

The Homelessness Gross Receipts Tax (effective January 1, 2019)  imposes an additional gross receipts tax of 0.175% to 0.69% on combined taxable gross receipts over $50 million. Businesses or combined groups that pay the administrative office tax will pay an additional tax of 1.5% on their payroll expense in San Francisco.

The Homelessness Gross Receipts Tax is filed as part of the Annual Business Tax Return

                                                  File your annual business tax return

Homelessness Gross Receipts tax does not apply to:

  • Certain nonprofit organizations and businesses exempt from local taxation, such as banks and insurance companies;
  • Receipts that are exempt from the gross receipts tax; and
  • Receipts subject to the City’s Early Care and Education Commercial Rents Tax.

Business Activity

Tax Rate

Retail Trade; Wholesale Trade; and Certain Services

.175%

Manufacturing; Transportation and Warehousing; Information; Bio-Technology; Clean Technology; and Food Services

.500%

Accommodations; Utilities; and Arts Entertainment and Recreation

.425%

Private Education and Health Services; Administrative and Support Services; and Miscellaneous Business Activities

.690%

Construction

.475%

Financial Services; Insurance; and Professional, Scientific and Technical Services

.600%

Real Estate and Rental and Leasing Services

.325%

There is litigation pending about the validity of Proposition C. Until the legislation is resolved, the revenues from the Homelessness Gross Receipts Tax cannot be expended by the City. In order to fund homeless services as outlined in Proposition C as quickly as possible, the City passed an ordinance effective May 2019, creating an opportunity for taxpayers to either waive their right to refund of the Homelessness Gross Receipts Tax based on the grounds of the pending litigation, or make an irrevocable gift to be used for the same purposes as the Homelessness Gross Receipts Tax. 

Waive Right to Refund

If a taxpayer chooses to waive its right to a refund based on the grounds of the pending litigation, the City will grant such taxpayer a credit of 10% of the Homelessness Gross Receipts Tax refund waived. 

  • Funds will be spent for the purposes allowed under the Homelessness Gross Receipts Tax Ordinance passed by the voters as Proposition C in November 2018.
  • The Taxpayer or combined group irrevocably waives and releases its right to a refund of the Homelessness Gross Receipts Taxes.
  • The taxpayer or combined group must enter into a binding agreement signed by the filer and each member of filer’s combined group (if applicable) each year prior to (or at the time of) filing its annual tax return.

Notice: Homelessness Gross Receipts Tax Waiver of Right to Refund 

Agreement: Waiver of Right To Refund Of Homelessness Gross Receipts Taxes

If a taxpayer is willing to make an irrevocable gift to the City for the City to use for the same purposes as the Homelessness Gross Receipts Tax, the City will grant such taxpayer a credit against the Homelessness Gross Receipts Tax liability of the taxpayer or its combined group equal to 110% of their gift amount. 

  • Funds will be spent for the purposes allowed under the Homelessness Gross Receipts Tax Ordinance passed by the voters as Proposition C in November 2018.
  • Any and all gifts are irrevocable.
  • Any person that makes an irrevocable gift shall be allowed a non-refundable credit against the Homelessness Gross Receipts Tax liability of that person or the combined group of which it is a part.
  • The tax credit shall equal 110% of the amount of the gift.
  • The tax credit will apply to the prior tax year if made after January 1st, but before a taxpayer timely files its Annual Business Tax return for that tax year.  Otherwise, the tax credit shall apply to the tax year in which the gift is made.
  • Any unused portion of this credit may be carried forward to future tax years up to and including tax year 2025, to be used against the future Homelessness Gross Receipts Tax liability of the person making the gift or the combined group of which it is a part.

Form: Homelessness Gross Receipts Tax Irrevocable Gift

Additional Information:

  • Statement by Treasurer Cisneros about taxes passed by the voters in the 2018 elections.
  • Article 28: Homelessness Gross Receipts Tax Ordinance
  • San Francisco Business and Tax Regulations Code Sections 6.9-1 through 6.9-5 of Article 6 for additional information on Determinations, Returns and Payments.

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