Annual Business Tax Online Return Instructions 2018

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Annual Business Tax Online Return Instructions 2018

The San Francisco Annual Business Tax Online Return ("Return") includes the Gross Receipts Tax, Payroll Expense Tax, and Administrative Office Tax. Beginning in tax year 2019, the Return will also include the Early Care and Education Commercial Rents Tax and Homelessness Gross Receipts Tax.

The San Francisco Business and Tax Regulations Code ("Code") provides the law for computation and rules for filing the Return. Taxpayers should not consider these instructions as authoritative law. These online instructions provide a summary of the applicable rules to assist you with completing your 2018 Return.

Who Must File?

Persons other than lessors of residential real estate ARE REQUIRED to file a Return for tax year 2018 if in 2018, you were engaged in business in San Francisco (as defined in Code section 6.2-12, qualified by Code sections 952.3 (f) and (g)), were not otherwise exempt under Code sections 906 or 954, and you:

Lessors of residential real estate in San Francisco must file a return for each building if they are not otherwise exempt under Code sections 906 and 954, unless both of the following are true:

  • Taxable payroll expense in the City attributable to that building is less than $300,000; AND
  • Lease fewer than 4 units in that individual building

If you do not meet any of the above criteria for tax year 2018 you generally are not required to file unless you are claiming the Biotechnology Exclusion in Code section 906.1, the Clean Technology Business Exclusion in Code section 906.2, the Enterprise Zone Tax Credit in section 906A, the Central Market Street and Tenderloin Area Payoff Expense Tax Exclusion in Code section 906.3, or the Central Market Street Limit in Code section 961.

When To File?

Returns and payments are due on or before the last day of February of the year following the tax year, unless the Tax Collector has granted you an extension prior to the due date. Online forms must therefore be transmitted before midnight on February 28, 2019. Payments must also be received or postmarked on or before February 28, 2019. Failure to meet these deadlines will result in penalties, interest, and fees.

You may request a 60-day extension.

To qualify for a 60-day extension to file your 2018 Return, you must complete and submit a request AND pay 100% of your 2018 Annual Business Tax (Gross Receipts Tax and Payroll Expense Tax) liability on or before February 28, 2019. If you do not make the required 100% payment by February 28, 2019, or you do not file your Return by April 29, 2019 your Request for Extension to File will be denied and you will be subject to penalties, interest, and fees.

How To File Online?

Log in to the online filing system using your seven (7) digit Business Account Number, the last four (4) digits of your Tax Identification Number, and your eight (8) character Online PIN. Be sure to enable pop ups on your web browser.

You May Be Eligible for a Simplified Online EZ FIling

If you were engaged in business in San Francisco other than as a lessor of residential real estate, do all your business within San Francisco, and meet certain other requirements, you may be eligible to use a simplified Online EZ filing. See Online EZ Return instructions, below.

Submitting Your Return

Your Return is not submitted unless you see the following pop up box:

submitted

Selecting “Continue” will take you to a page to download or email your Return, and to see your payment options.

Persons Exempt from the Annual Business Tax Filing

Persons Exempt from the Annual Business Tax Filing

If you are completely exempt from both the Payroll Expense Tax and the Gross Receipts Tax under Code sections 906 and 954, respectively (summarized below), you do not need to file a Return. If you are exempt from either the Payroll Expense Tax or the Gross Receipts Tax, complete the Return and enter zeros for the tax for which you are exempt.

Code section 906 provides a detailed list of persons that are exempt from the Payroll Expense Tax. Such persons include:

  • An organization having a formally recognized exemption from income tax pursuant to sections 501(c), 501(d), or 401(a) of the Internal Revenue Code (the “IRC”), as qualified by sections 502, 503, and 504 of the IRC. However, organizations (other than organizations described under section 501(c)(3) of the IRC) directly engaged within the City in an unrelated trade or business within the meaning of section 513(a) of the IRC that have, from their own operations, unrelated business taxable income within the meaning of section 512(a)(1) of the IRC, do not qualify for this complete exemption.
  • Skilled nursing facilities licensed under the provisions of Title 22, California Administrative Code, Division 5, Chapter 3.
  • Banks and financial corporations exempt from local taxation under Article XIII, Section 27 of the California Constitution and Revenue and Taxation Code section 23182.
  • Insurance companies exempt from local taxation under Article XIII, Section 28 of the California Constitution.
  • Persons engaging in business as a for-hire motor carrier of property under Revenue and Taxation Code section 7233.
  • Persons engaging in intercity transportation as a household goods carrier under Public Utilities Code section 5327.
  • Charter-party carriers operating limousines that are neither domiciled nor maintain a business office with the City under Public Utilities Code Section 5371.4.
  • Any other person upon whom the City is prohibited under the Constitution or statute of the United States or under the Constitution or statute of the State of California from imposing the Payroll Expense Tax. 

Code section 954 provides a detailed list of persons that are exempt from the Gross Receipts Tax. Such persons include:

  • An organization exempt from income taxation by Chapter 4 (commencing with section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code, or Subchapter F (commencing with section 501) of Chapter 1 of Subtitle A of the IRC, as qualified by sections 502, 503, 504, and 508 of the IRC. However, organizations directly engaged within the City in an unrelated trade or business within the meaning of section 513(a) of the IRC that have, from their own operations, unrelated business taxable income within the meaning of section 512(a)(1) of the IRC, do not qualify for this complete exemption.
  • Banks and financial corporations exempt from local taxation under Article XIII, Section 27 of the California Constitution and Revenue and Taxation Code section 23182.
  • Insurance companies exempt from local taxation under Article XIII, Section 28 of the California Constitution.
  • Persons engaging in business as a for-hire motor carrier of property under Revenue and Taxation Code section 7233.
  • Persons engaging in intercity transportation as a household goods carrier under Public Utilities Code section 5327.
  • Charter-party carriers operating limousines that are neither domiciled nor maintain a business office with the City under Public Utilities Code Section 5371.4.
  • Any other person upon whom the City is prohibited under the Constitution or laws of the United States or under the Constitution or laws of the State of California from imposing the Gross Receipts Tax.
Persons who must file Paper Returns

Persons who must file Paper Returns

You may not file your Return online and must file a paper Return if:

  • You plan to claim the Central Market Street and Tenderloin Area Payroll Expense Tax Exclusion with respect to your Payroll Expense Tax;
  • You plan to take the Central Market Street Limit in Code section 961;
  • You are a lessor of residential estate claiming a tax credit, exclusion, or limit.
  • You are filing on behalf of a combined group where one related entity in the combined group is filing for a tax credit, exclusion, or limit (such as the Enterprise Zone Tax Credit) and 100% of the combined group's San Francisco gross receipts are NOT attributable to the filing entity filing for the tax credit, exclusion, or limit.
  • You are filing on behalf of a combined group where at least one of the related entities in the combined group was: only partially in the combined group or only was included in the combined group for part of the year; AND you are reporting payroll expense greater than zero but less than or equal to $300,000 for that entity; AND the entity’s payroll expense for portion of the entity or tax year you are filing for is not proportionally representative of the entire tax year. Under this scenario the online return may incorrectly apply the small business enterprise exemption.

To obtain a paper return, submit an online request for service, or call 3-1-1 from within San Francisco or 415-701-2311 outside of San Francisco.

What's New for 2018

What's New for 2018

Small Business Enterprise Exemption Threshold Increases

The small business enterprise exemption threshold for Gross Receipts Tax has been increased in accordance with Code section 954.1. The small business enterprise exemption threshold for the Gross Receipts Tax for tax year 2018 is $1,120,000 in combined taxable San Francisco Gross Receipts for all businesses except lessors of residential real estate . The small business enterprise exemption threshold for the Payroll Expense Tax for tax year 2018 remains $300,000.

In addition, if you fall below the small business exemption for both taxes you no longer need to file a Return unless you are claiming the Biotechnology Exclusion in Code section 906.1, the Clean Technology Business Exclusion in Code section 906.2, the Enterprise Zone Tax Credit in section 906A, the Central Market Street and Tenderloin Area Payroll Expense Tax Exclusion in Code section 906.3, or the Central Market Street Limit in Code section 961.

Tax Rates

For 2018, the Gross Receipts Tax adjustment factor is 100% and the Payroll Expense Tax rate is 0.380% (0.00380) after adjustment by the Controller as mandated by law.

Construction: Amounts Paid to Subcontractors

A new form is required this year to assist taxpayers and combined groups in the business activity of Construction to calculate and report the amounts paid to subcontractors that are eligible for exclusion from gross receipts.

Complete this page if you are reducing your construction gross receipts by the amounts paid to subcontractors. Enter the Business Account Numbers of subcontractors that received payments from you during the tax year, as well as the project location, and the total payments made or recognized. Amounts reported in this form must have been included in the San Francisco column of allocated gross receipts in the business activity of Construction. Complete for each location and subcontractor.

When you select the button to input your subcontractor information, a popup window will appear. You are required to report your subcontractor payments by subcontractor, by site. If you have multiple subcontractors at multiple work sites, you will have multiple entries for each.

BAN: Enter the 7 digit Business Account Number of the subcontractor

Business Name: This area will populate with the business name matching the 7 digit BAN in our system. If you did not enter a valid BAN, a name will not populate, and the message “Invalid BAN” will appear.

Project Location: Enter the address within the City and County of San Francisco where the subcontractor performed work. Note: if the project location is at SFO Airport, Daly City, South San Francisco, or any other surrounding cities, it is not in the City and County of San Francisco, and is not eligible for this exclusion.

Payment Amount: Enter the total amounts paid to the subcontractor for work at this project location for the tax year.

To add a line, select the green “Add a Subcontractor Entry” button on the bottom left.

Below the table, the form will display your reported allocated San Francisco gross receipts and the sum of the subcontractor payments. Subcontractor payments should not exceed allocated San Francisco gross receipts. If your filing reflects this result, you may have an error in your reporting.

Once you are finished reporting your payments by subcontractor, by location, select Save and Continue. The window will close and the sum will display on your return. You may edit the amounts by selecting the Subcontractor Information button. Our filing does not support spreadsheet upload this year.

Real-time Payment information

The online Return will display all tax year 2018 Gross Receipts Tax and Payroll Expense Tax payments received by our office, updated real time to reflect current information.

Early Care and Education Commercial Rents Tax Informational Return

The Early Care and Education Commercial Rents Tax Ordinance (Commercial Rents Tax) was passed by the voters on June 5, 2018, and became operative on January 1, 2019. In addition to the existing Gross Receipts and Payroll Expense Taxes, the Commercial Rents Tax imposes a new gross receipts tax.

Businesses will report their gross receipts from the lease or sublease of warehouse space and other commercial space in the City during tax year 2018. This information is required if you had gross receipts from the lease or sublease of commercial space (including warehouse space).

Businesses will file and pay the Commercial Rents Tax at the same time and in the same manner as the Gross Receipts Tax. This includes making three quarterly estimated payments of the Commercial Rents Tax liability throughout the tax year. The informational return will ask for your 2018 information to estimate your 2019 payments. Estimated quarterly tax obligations for the tax year will be mailed and billed accordingly.

This tax generally does not apply to businesses exempt from the Gross Receipts Tax.

Annual Business Tax Filing Extension Requests

Taxpayers or combined groups requesting an extension are now required to make a payment of 100% of their 2018 tax liability with their extension request. You must request and pay by February 28, 2019 to avoid penalties and fees. Taxpayers or combined groups granted a 60-day extension must file their Return on or before April 29, 2019.

Expired: Stock-Based Compensation Exclusion

The Stock-Based Compensation exclusion expired on 12/31/2017 per Section 906.4 of the Code.

Upcoming for Tax Year 2019: Homelessness Gross Receipts Tax

The Homelessness Gross Receipts Tax Ordinance was approved by the voters in the November 2018 election and applies to businesses with more than $50 million in combined taxable gross receipts in San Francisco, and to all businesses that pay the administrative office tax. The additional tax for non-administrative office tax payers is from 0.175 percent to 0.690 percent on combined taxable gross receipts in San Francisco over $50 million. For businesses that pay the administrative office tax, this is an additional tax of 1.5 percent of their payroll expense in San Francisco. Businesses will file and pay the Homelessness GRT at the same time and in the same manner as the Gross Receipts Tax. Businesses projected to be subject to the Homelessness GRT will see an estimated payment amount in their quarterly filings during tax year 2019.

Information - Online EZ Filing

Information - Online EZ Filing

The Office of the Treasurer & Tax Collector has provided an “Online EZ” filing option for certain small businesses that are not lessors of residential real estate and meet all the following criteria:

  1. All gross receipts in 2018 were derived from business activities within San Francisco; and
  2. All employees (if any) only work in San Francisco; and
  3. The business does not qualify for any deductions, exclusions, credits, or limits; and
  4. The business is not a combined group of related entities; and
  5. More than 80 percent of your San Francisco gross receipts are derived from business activities described in one tax rate category (i.e., one of Code sections 953.1 through 953.7). Select here for a list of tax rate categories. To determine whether more than 80 percent of your San Francisco gross receipts in 2018 were derived from a single tax rate category, divide your San Francisco gross receipts for each tax rate category into your total San Francisco gross receipts for all tax rate categories combined.

Log in to the online filing, answer a few introductory questions about your business then select “Yes” if you qualify and would like to file using the Online EZ form. This form allows qualifying taxpayers to file more quickly. Select “No” if you are required to or prefer to not use the Online EZ form.

Continue through the remaining pages of the form then review, sign, and submit your Return electronically. The system will explain your payment options, if payment is required. If you do not use the Online EZ filing, the system will route you to the standard form.

Information - Lessors of Residential Real Estate

Information - Lessors of Residential Real Estate

Lessors of residential real estate in San Francisco must file a Return for each building if they are not otherwise exempt under Code sections 906 and 954, unless both of the following are true:

  • Taxable payroll expense in the City, computed without regard to the small business tax exemption in Code section 905-A, is less than $300,000; AND
  • Lease fewer than 4 units in any individual building

"Residential real estate” means real property where the primary use of or right to use the property is for dwelling, sleeping or lodging other than as part of the business activity of accommodations.

If you were engaged in business in San Francisco as a lessor of residential real estate (a residential landlord), each individual building in which you lease residential real estate units is treated as a separate person, with a separate Business Account Number.

Lessors of residential real estate in San Francisco must file a return for each building in San Francisco under a separate Business Account Number to correctly report their tax liability. Lessors of residential real estate that engage in any business other than leasing residential real estate (e.g., leasing commercial real estate, retailing, etc.) must complete a Return under a separate Business Account Number for the portion of their business that is not leasing residential real estate.

Residential landlords that qualify for a credit, exclusion, or limit may not file online and must file a paper return. Obtain a paper return by submitting an online request for service (LINK) , or call 3-1-1 from within San Francisco or 415-701-2311 outside of San Francisco.,

To use the Online Lessor of Residential filing:

The Office of the Treasurer & Tax Collector has provided a “Lessor of Residential Real Estate (Residential Landlord)” filing option for Residential Landlords.

The system will automatically calculate your Gross Receipts Tax. If you leased out fewer than four units in the building for which you are filing, you will qualify for the small business exemption and will owe no Gross Receipts Tax. If you lease units subject to rent control, you may enter those amounts to calculate the 50% exclusion of gross receipts. Note: you must enter a value in line 3 to proceed with the filing. This figure must include the gross receipts for all units, including rent-controlled units.

Note: you must enter a value in line 3 to proceed with the filing. This figure must include the gross receipts for all units, including rent-controlled units.

  1. Log in to the online filing and answer a few introductory questions about your business.
  2. Select “Yes” when the system asks if you are a lessor of residential real estate.
  3. Go through the Payroll Expense Tax filing.
  4. On the Gross Receipts Tax filing, the system will automatically select “Real Estate and Rental and Leasing Services” as your business activity.
  5. Enter the number of units you leased out and your total gross receipts for 2018. Answer “Yes” or “No” to “Are your units rent-controlled?” The system will automatically calculate your Gross Receipts Tax. If you leased out fewer than four units in the building for which you are filing, you will qualify for the small business exemption and will owe no Gross Receipts Tax. If you lease units subject to rent control, you may enter those amounts to calculate the 50% exclusion of gross receipts. Note: you must enter a value in Line 3 to proceed with the filing. This figure must include the gross receipts for all units, including rent controlled units.
  6. Continue through the remaining pages of the form: Quarterly Payments, Tax Summary and Taxpayer Statement. Review, sign, and submit your Return electronically. The system will explain your payment options.
Information - Combined Groups

Information - Combined Groups

All persons and their related entities (defined below) must file the Return on a combined basis, reflecting the gross receipts, payroll expense, and other tax attributes (e.g., credits and exclusions, payroll for apportionment, etc.) of all related entities. For purposes of these instructions, the terms “you” and “your” will refer to the Filer and any related entities of a combined group, unless otherwise noted.

For purposes of this Return, the term “combined group” refers to a taxpayer and all its related entities. A person is a related entity to a taxpayer if: (1) that person and the taxpayer are permitted or required to have their income reflected on the same combined report for California Franchise or Income Tax purposes; or (2) that person and one or more other persons (including the taxpayer) derive gross receipts solely from sources within California and their business activities are such that, if conducted both within and outside California, a combined report would be required for California Franchise or Income Tax purposes.

If an entity was a member of your combined group for only a portion of 2018, include that entity in your combined group’s Return for the portion of 2018 that it was a member. For the portion of 2018 that the entity was not a part of your combined group, that entity will have to file separately or as part of another combined group.

If you are currently a non-filing member of a combined group but were a separate entity for a portion of the year, you must file as a separate entity for that portion of 2018 that you were a separate entity engaged in business in San Francisco.

If your combined group for California Franchise or Income Tax purposes includes an entity that is exempt from the Payroll Expense Tax and/or Gross Receipts Tax (e.g., banks or financial corporations exempt from local taxation under Article XIII, Section 27 of the California Constitution and Revenue and Taxation Code section 23182), you should exclude the gross receipts, payroll expense, and other tax attributes of this exempt entity from your combined Return.

NOTE: Pursuant to Tax Collector Regulation 2014-2, a single-member entity (including a single-member limited liability company) treated as a disregarded entity for federal income tax purposes will be disregarded for purposes of the Gross Receipts Tax, Payroll Expense Tax, and business registration requirements. Each such entity will be treated as a sole proprietorship, branch, or division of its owner. The owner of the disregarded entity will be the registrant and taxpayer for purposes of the Gross Receipts Tax, Payroll Expense Tax, and business registration requirements.

 

The Annual Business Tax Online Return: Section by Section

 

Business Identification

A1. Business Identification

 
Question 1 – Taxable Business Personal Property

Check “Yes” if you had any taxable business personal property in the City during the tax year. Otherwise check “No.”

Business Personal Property includes items like machinery, equipment, fixtures, and leasehold improvements held or used in connection with a trade or business. Business property owners must file a property statement each year with the Business Personal Property Division (BPP) of the Office of the Assessor-Recorder detailing the acquisition cost of all supplies, equipment, fixtures, and improvements owned at each location within the City and County of San Francisco. For more information visit: San Francisco Office of the Assessor-Recorder

Question 2 – Average Number of Employees per Week

Input the average number of weekly employees for your entire business (not just San Francisco) in 2018. This is a survey question that does not affect your tax liability.

Filing Questionnaire

A2. Filing Questionnaire

 
Question 1 – Residential Landlord

Check “Yes” if you are filing this Return as a lessor of residential real estate in 2018. “Residential real estate” means real property where the primary use of or right to use the property is for dwelling, sleeping or lodging other than as part of the business activity of accommodations..

Question 2 – Tax Credit, Payroll Expense Exclusion, or Limit

The City and County of San Francisco offers tax credits, payroll expense exclusions, and the Central Market Street Limit. Check “Yes” if you are claiming any of these and you will be directed to the page to input your information. Please note, most credits and exclusions require prior qualification and do not apply to most taxpayers.

Biotechnology Exclusion, Clean Technology, Clean Market Street, and Enterprise Zone

Question 3 – Online EZ

The Office of the Treasurer & Tax Collector has provided an “Online EZ” filing option for certain small businesses that meet certain criteria. Select “Yes” if you qualify for and would like to file using the Online EZ form. This form allows qualifying taxpayers to file more quickly. Select “No” if you are required to or prefer to not use the Online EZ form.

You must meet all of the following criteria to qualify to use the EZ form:

  1. All gross receipts in 2018 were derived from business activities within San Francisco; and
  2. All employees (if any) only work in San Francisco; and
  3. The business does not qualify for any deductions, exclusions, credits, or limits; and
  4. The business is not a combined group of related entities; and
  5. More than 80 percent of your San Francisco gross receipts are derived from business activities described in one tax rate category (i.e., one of Code sections 953.1 through 953.7).

To determine whether more than 80 percent of your San Francisco gross receipts in 2018 were derived from a single tax rate category, divide your San Francisco gross receipts for each tax rate category into your total San Francisco gross receipts for all tax rate categories combined.

Administrative Office Business Tax

B1. Administrative Office Tax Filing Questionnaire

"Administrative or management services" comprises internal support services provided on an enterprise-wide basis, such as executive office oversight, company business strategy, recordkeeping, risk management, personnel administration, legal, accounting, market research and analysis, and training services; it does not include sales personnel or personnel actively engaged in marketing, research and development, direct customer service, and product support services. In an audit, the Tax Collector would request documents to support the entity’s classification of employees. This may include reviewing a cost center analysis and the job functions of individual employees, among other things.

This page contains up to three questions that will determine whether you are subject to the Administrative Office Tax, or whether you are subject to the Payroll Expense Tax and Gross Receipts Tax. If you are the Filer of a combined group, answer these questions on a combined basis. However, for purposes of these three questions only, a person is a “related entity” if they could be included in the same combined report for California Franchise or Income Tax purposes but for the existence of a water’s edge election (i.e., you should ignore any water’s edge election for purposes of these three questions).

If you answer “Yes” to all three questions, you are subject to the Administrative Office Tax and will be directed to the Tax on Administrative Office Business Activities filing. If you answer “No” to any one of the questions, you do not qualify for the Administrative Office Tax and will be directed to the Payroll Expense Tax filing.

A 1.4% tax on the San Francisco payroll expense of a person or combined group engaging in business within San Francisco as an administrative office in lieu of other taxes provided in Article 12-A-1 and Article 12-A. A person or combined group is engaging in business within San Francisco as an administrative office only if over 50% of the total combined San Francisco payroll expense of that person and its related entities for the preceding tax year was associated with providing administrative or management services exclusively to that person and its related entities. In addition, that person and its related entities must have had over 1,000 U.S. employees as of the most recent December 31st, and over $1 billion in combined gross receipts reported (or that will be reported) on United States federal income tax return(s) for the person or combined group’s most recently completed federal income tax year. See Code section 953.8 for more information.

For 2018, the AOT rate is 1.4%. Beginning in tax year 2019, there is an additional 1.5% homelessness gross receipts tax on administrative offices, for a combined rate of 2.9%.

If you answered “No” to any of the questions, you will be taken to the Payroll Expense Tax Filing - Questionnaire.

Question 1 – Employees

Check “Yes” if the total combined number of your business's full-time and part-time employees within the United States and any related entities exceeded 1,000 as of the most recent December 31st (12/31/2018). Otherwise, check “No.”

Question 2 – Gross Receipts

Check “Yes” if the total combined gross receipts of your business and any related entities reported on United States federal income tax return(s) for your most recently completed federal income tax year exceeded one billion dollars ($1,000,000,000). Otherwise, check “No.” If you and/or any of your related entities have not yet filed United States federal income tax return(s) for your most recently completed federal income tax year, use the gross receipts that will be reported on such return(s) when filed.

Question 3 – Payroll Expense Attributable to Administrative or Management Services

Check “Yes” if over 50 percent of the total combined payroll expense in the City of your business and any related entities in 2018 was associated with providing administrative or management services exclusively to you and any of your related entities. Otherwise, check “No.” For purposes of this question only, payroll expense in the City is determined in the same way as for the Payroll Expense Tax (in Code section 901 et seq.), except that grants of rights to acquire an ownership interest in an employer (e.g., stock options) are not included as payroll expense.

C1. Tax on Administrative Office Business Activities

If you answered “No” to any of the questions on the previous page, you will not see this page and will be taken directly to the Payroll Expense Tax Filing - Questionnaire.

If you answered “Yes” to all three of the questions on the previous page, you will be asked to input your San Francisco payroll expense for 2018.

Line 1 – San Francisco Payroll Expense

Enter the combined payroll expense of you and any related entities. Article 12-A of the Code (imposing the Payroll Expense Tax) provides detailed rules for determining San Francisco payroll expense.

Line 2 – Administrative Office Tax @ 1.4%

The system will multiply line 1 by 1.4% (0.014).

Quarterly Penalties page

Your quarterly payment obligation is 25% of the lesser of the tax liability shown on your 2017 Return or the tax liability shown on your 2018 Return and is due by the quarterly deadlines (end of April, July, and October). If you did not remit sufficient estimated tax payments by the quarterly deadlines, then a 5% penalty will be imposed. If you are not subject to any quarterly penalty, you will not see this page.

Quarterly Payments Displayed

This page will display all estimated tax payments we have received up through October 31, 2018. If you made a payment on or after November 1, 2018, that payment will display on the next page, Tax Year 2018 Annual Business Tax Payments page.

If you believe the payment information displayed on this page is incorrect, you may check the box next to “I disagree with the payment information displayed above” and enter the payment information from your records. Taking this action will trigger a review of your account by our staff. However, taking this action will not automatically affect any estimated tax payment penalties or the amount due in the Online Payment Portal. It may take up to 10 business days to adjust your account, if needed.

Quarterly Payment Obligation Calculation

The required estimated tax payments are the lesser of the tax liability shown on your 2017 Return or the tax liability shown on your 2018 Return. If you believe the 2017 filing information displayed is incorrect, you may check the box next to “I disagree with the 2017 Annual Tax Obligation amount displayed above” and enter the 2017 filing information from your records.

Estimated Tax Payment Penalties

The Board of Supervisors reduced the estimated tax payment penalties to 5% from up to 20% in March 2017, effective for tax year 2017 and subsequent tax years. If you did not remit sufficient estimated tax payments by the quarterly deadlines (end of April, July, and October) then a 5% penalty will be imposed. The penalty calculation is provided on the “Quarterly Penalties” page. The required estimated tax payments are the lesser of the tax liability shown on your 2017 Return or the tax liability shown on your 2018 Return. Overpayment in the payroll expense tax is credited to underpayment in the gross receipts tax and vice versa.

Tax Year 2018 Annual Business Tax Payments Summary

This page will display all tax payments we have processed for tax year 2018 Payroll Expense Tax, Gross Receipts Tax and/or Administrative Office Tax.

If you believe the payment information displayed on this page is incorrect, you may check the box next to “I disagree with the payment information displayed above” and enter the payment information from your records. Taking this action will trigger a review of your account by our staff. However, taking this action will not automatically affect any estimated tax payment penalties or the amount due in the Online Payment Portal. It may take up to 10 business days to adjust your account, if needed.

Tax on Administrative Office Business Activities Obligation Summary

Line 1 – San Francisco payroll expense

This line displays your San Francisco Payroll Expense, based on your filing.

Line 2 – Administrative Office Tax

This line displays the calculated Administrative Office Tax, based on your filing.

Line 3 – Quarterly Payment Penalty

This line displays the quarterly payment penalty calculated on the Quarterly Payments page, if applicable.

Line 4 –Total Quarterly Payments

This line displays all tax payments we processed on or before 2/28/2019.

Line 5 –Quarterly Payments Applied to Quarterly Penalty

This line displays payments received on or before 2/28/2019 that were applied to the quarterly payment penalty, if applicable. Payments are applied to quarterly penalty before being applied to calculated tax.

Line 6 –Quarterly Payments Applied to Administrative Office Tax

This line displays the payment received on or before 2/28/2019 that were applied to the Administrative Office Tax.

Line 7 – Administrative Office Tax

This line displays the Administrative Office Tax due after applicable payments received on or before 2/28/2019 have been applied.

Line 8 – Quarterly Payment Penalty

This line displays the quarterly payment penalty due after payments received on or before 2/28/2019 have been applied.

Lines 9 – 12 – Penalties, Interest, and Fees

These lines display penalties, interest, and fees for late filings, if applicable. Note that for filings received after the 2/28/2019 filing deadline, these calculations are provided only as estimates and may not be accurate. Review the amount due displayed in the Online Payment Portal for penalty calculations that consider late payments.

Line 13 – Net Amount (Administrative Office Tax)

The system will calculate the total obligation due, net of payments received on or before 2/28/2019 and with penalties, interest, and fees (if applicable). A positive number reflects a balance due. A negative number reflects an overpayment.

Line 14 - Payment received on or after 3/1/2019

This line displays all tax payments processed on or after 3/1/2019.

Line 15 – Net Amount Due (Administrative Office Tax) after payments

This line displays the amount due after all payments have been applied. Note that for filings submitted after the 2/28/2019 filing deadline, these calculations are provided only as estimates and may not be accurate. Review the amount due displayed in the Online Payment Portal for penalty calculations that consider late payments.

Total Obligation Due / Amount Overpaid

The system will calculate the total obligation due, net of payments and with penalties, interest, and fees (if applicable). A positive number reflects a balance due. A negative amount reflects an overpayment. Note that for filings submitted after the 2/28/2019 filing deadline, these calculations are provided only as estimates and may not be accurate. Review the amount due displayed in the Online Payment Portal for penalty calculations that consider late payments.

Apply to Future Obligations or Refund Request (Only Displays for Overpayments)

If your Total Obligation Due/Overpayment is negative, you may request to apply the overpayment to future tax obligations or request a refund from the Office of the Treasurer & Tax Collector. Fields that give you these options will display. The form defaults to request to apply your overpayment to future tax obligations. If you select to apply to future obligations and the amount of your 2018 overpayment exceeds the sum of your 2019 Quarterly obligations, the difference will be reviewed for refund.

You may select the field to request a refund.

Your request to apply to future obligations or refund will be reviewed and may be applied to outstanding delinquencies before being applied to future obligations or refunded.

If you have overpaid your taxes but this page does not reflect an overpayment, you must file a request to apply the overpayment to a future obligation or a refund form and/or claim for refund form within the time period mandated by law or you will forfeit the amount of your overpayment. If you checked the box requesting a refund and do not receive a check from the Tax Collector, you must file a claim for refund form within the time period mandated by law to obtain your refund.

NOTE: If your business is closed, or if your Return results in zero tax due, you will not have the option of requesting to apply overpayments to future tax obligations. In these scenarios, the overpayment will be reviewed for a refund.

Community Challenge Grant

If you would like to designate a portion of your tax liability on line 1 to the Neighborhood Beautification and Graffiti Clean-up Fund (also known as the "Community Challenge Grant Program") you may:

  • Check the box at left to designate 3.3 percent (0.033) of your tax liability in the box at the right;or
  • Check the box and enter an amount in the box at right up to 3.3 percent of your tax liability (for example, $330 if your tax liability is $10,000).

This designation will not increase your tax liability, but will designate a portion of the tax you pay to go to the Community Challenge Grant Program.

 
Tax Credits & Exclusions Selection

B2. Tax Credits & Exclusions Selection

 

San Francisco offers tax credits and exclusions for taxpayers meeting specific requirements, as described below. This page is designed to allow taxpayers to file for their credits and exclusions. Check the credit(s) or exclusion(s) you wish to claim and select “Save & Continue” to enter your credit and exclusion information. If you are not qualified for a credit or exclusion listed on this page, select the green Business Identification tab at the top of the page to return to the beginning and change your answer on Question 2 of the Filing Questionnaire to “No.”

If you are filing for the Central Market Street and Tenderloin Area Payroll Expense Tax Exclusion and Central Market Limit, you may not file your Return online and must obtain a paper return (if you have not already received one) by submitting an online request for service.

Biotechnology

The requirements for the Biotechnology Exclusion can be found in Code section 906.1.

Biotechnology Exclusion Worksheet

The Biotechnology Exclusion permits an exclusion from payroll expense for persons meeting the requirements of Code section 906.1, in an amount determined under that Code section. The “Payroll Expense Tax Exclusion” Credit permits a credit against the Payroll Expense Tax and Gross Receipts Tax of the entity generating the Biotechnology Exclusion in an amount equal to the additional Payroll Expense Tax reduction to which the eligible person would have been entitled as a result of the Biotechnology Exclusion if the Payroll Expense Tax had remained in effect at 1.5 percent. You must timely file your Return to take the credit and exclusion.

To file for the Biotechnology Exclusion and related “Payroll Expense Tax Exclusion” Credit, complete and submit this page.

Line 1. Input the amount of payroll expense to be excluded from the eligible person’s San Francisco payroll expense due to the Biotechnology Exclusion in Code section 906.1.

This is the Payroll Expense Tax exclusion for the eligible person and will be input in your Payroll Expense Tax Statement.

Line 2. The system will multiply the amount in line 1 by 1.12% (0.0112). This product is your “Payroll Expense Tax Exclusion” Credit. It will be apportioned between the Payroll Expense Tax and Gross Receipts Tax.

Click “Save & Continue” to proceed to the next page.

Clean Technology

Many of the requirements for the Clean Technology Business Exclusion in Code section 906.2 are summarized by the San Francisco Department of the Environment.

Clean Technology Business Exclusion Worksheet

The Clean Technology Business Exclusion permits an exclusion from payroll expense for persons meeting the requirements of Code section 906.2, in an amount determined under that Code section. The “Payroll Expense Tax Exclusion” Credit permits a credit against the Payroll Expense Tax and Gross Receipts Tax of the entity generating the Clean Technology Business Exclusion in an amount equal to the additional Payroll Expense Tax reduction to which the eligible person would have been entitled as a result of the Clean Technology Business Exclusion if the Payroll Expense Tax had remained in effect at 1.5 percent. You must timely file your Return to take the credit and exclusion.

To file for the Clean Technology Business Exclusion and related “Payroll Expense Tax Exclusion” Credit, complete and submit this page.

Line 1. Input the amount of payroll expense to be excluded from the eligible person’s San Francisco payroll expense due to the Clean Technology Business Exclusion in Code section 906.2.

This is the Payroll Expense Tax exclusion for the eligible person and will be input in your Payroll Expense Tax Statement.

Line 2. The system will multiply the amount in line 1 by 1.12% (0.0112). This product is your “Payroll Expense Tax Exclusion” Credit. It will be apportioned between the Payroll Expense Tax and Gross Receipts Tax.

Click “Save & Continue” to proceed to the next page.

Central Market Street

Many of the requirements of the Central Market Street and Tenderloin Area Payroll Expense Tax Exclusion in Code section 906.3 are summarized by the Office of Economic and Workforce Development.

If you are filing for this exclusion and the Central Market Street Limit you may not file your Return online and must obtain a paper return by submitting an online request for service, or calling 3-1-1 from within San Francisco or 415-701-2311 outside of San Francisco.

Enterprise Zone

The requirements of the Enterprise Zone Tax Credit can be found in Code section 906A. Persons filing for this credit and the related “Payroll Expense Tax Exclusion” Credit must have received vouchers for their qualified employees on or before December 31, 2014. Businesses that are eligible for the Enterprise Zone Tax Credit must download and complete the Enterprise Zone Tax Credit Calculation Table for upload with your Annual Return.

Line 1 – Credit Amount

Enter the calculated amount into line 1 of this page.

Upload

Select the “Upload” button to upload the spreadsheet used to calculate the tax credit. Our office will use this document to validate the credit taken.

The online form will apportion the tax credit between the Gross Receipts Tax and Payroll Expense Tax.

Enterprise Zone Tax Credit Worksheet

The Enterprise Zone Tax Credit permits a credit against the Payroll Expense Tax for persons meeting the requirements of Code section 906A, in an amount determined under that Code section. The “Payroll Expense Tax Exclusion” Credit permits a credit against the Payroll Expense Tax and Gross Receipts Tax of the entity generating the Enterprise Zone Tax Credit in an amount equal to the additional Payroll Expense Tax reduction to which the eligible person would have been entitled as a result of the Enterprise Zone Tax Credit if the Payroll Expense Tax had remained in effect at 1.5 percent. However, the Enterprise Zone Tax Credit and related “Payroll Expense Tax Exclusion” Credit are not available for employees hired on or after January 1, 2014, or for employees hired before January 1, 2014, who were not vouchered on or before December 31, 2014.

Businesses that are eligible for the Enterprise Zone Tax Credit must download and complete the Enterprise Zone Tax Credit Calculation Table. For each employee, you will need to populate the yellow highlighted fields: Employee First Name, Employee Last Name, Job Title, Date Hired, Date No Longer Employed (if applicable), Gross Payroll Expense and Ineligible Payroll Expense. The spreadsheet will calculate the tax credit. Save your calculation table Excel document with your employee information and upload it to the Annual Return when prompted by the form.

Payroll Expense Tax Filing - Questionnaire

C. Payroll Expense Tax Filing - Questionnaire

Question 1 – Combined Groups

Are you filing on behalf of a combined group of related entities or are you an entity that was part of a combined group for any portion of the tax year (even if you are filing this return as a separate entity)?

Note: Most businesses will answer “No” to this question and will be directed to the Payroll Expense Tax Statement Data page. For purposes of this Return, the term “combined group” refers to a taxpayer and all its related entities. A person is a related entity to a taxpayer if: (1) that person and the taxpayer are permitted or required to have their income reflected on the same combined report for California Franchise or Income Tax purposes; or (2) that person and one or more other persons (including the taxpayer) derive gross receipts solely from sources within California and their business activities are such that, if conducted both within and outside California, a combined report would be required for California Franchise or Income Tax purposes.

Answer “Yes” if any of the following apply to you:

1) You are filing on behalf of a combined group of related entities;

2) You were part of a combined group of related entities for a portion of the tax year, but are filing this return as a separate filer for a portion of the year; AND/OR

3) Part of your business is included in a combined group of related entities, but you are filing this Return as a separate filer for the portion that is not part of the combined group.

 
Payroll Expense Tax Filing – Statement Data

C1. Payroll Expense Tax Filing – Statement Data

This page allows you to enter the information to calculate your Payroll Expense Tax liability. Scroll down in these instructions if you need to enter Related Entities.

Column – San Francisco Employees

Enter the number of your San Francisco employees (full- and part-time) at the end of the period for which you are filing this Return.

Column – San Francisco Payroll Expense

Enter your San Francisco payroll expense for 2018. Article 12-A of the Code provides rules for determining San Francisco payroll expense. After entering your employees and San Francisco payroll expense, the system will calculate your total Payroll Expense Tax before any credits on page C2.

Note: Lessors of residential real estate are treated as separate persons for purposes of the Payroll Expense Tax for each individual building in which they lease residential real estate and must file separate Returns for each individual building and for their other business activities combined.
 
Payroll Expense Tax Filing – Related Entities Statement Data For Combined Group

C1. Payroll Expense Tax Filing – Related Entities Statement Data for Combined Group

This page allows you to enter the information to calculate your Payroll Expense Tax liability. When you first enter the form, only the filer’s information will populate the fields on the screen.

Adding Related Entities to the Combined Group

To add a related entity to the combined group, select the “Add Member” button on the left side of the screen below the table. This will bring up the “Add Member” window, where you must enter the 7-digit Business Account Number of the related entity you wish to add to the group. You must enter a valid seven (7) digit Business Account Number to add to the group. After entering a valid 7-digit Business Account Number, select “Save.” The “Add Member” window will close, and a row will be added to the table with the Business Account Number and Business Name we have on file for the related entity. Confirm that the Business Account Number and Business Name are correct before proceeding. You may add as many related entities as you need to complete your combined group.

Column – #

This is an auto-populated column that tracks the number of related entities in the combined group, including the person filing on behalf of the group.

Column – Business Account Number

This column updates based on your entries into the “Add Member” screen. To delete a member, click “X” to the left of the Business Account Number.

Column – Business Name

This is an auto-populated column based on your entries into the “Add Member” screen.

Column – Percent of Entity Included in Filing (100% if Wholly in Group)

In this column you may adjust the percentage that an entity is part of the combined group. This situation may arise where a pass-through entity is only partially owned by and is unitary with an entity or entities in one or more combined groups. Note, if the amount in this column is adjusted to less than 100%, the entity or someone filing on behalf of the combined group the remaining portion or portions of the entity is in, will have to complete a Return to account for the portion of the entity that is not included in this filing. An example below illustrates this approach to filing.

Column – Date Entered Group

Enter the date the entity joined the combined group. Entities filing separately that: (1) joined a combined group during the tax year and were engaged in business in San Francisco prior to that date (whether fully included in the combined group or not for the portion of the year that they were members); or (2) were partially included in a combined group for the entire tax year, should enter the date they first engaged in business in San Francisco. Entities filing separately that left a combined group during the tax year and were engaged in business in San Francisco after leaving the group (whether fully included in the combined group or not for the portion of the year that they were members) should enter the date they left the combined group. If the date was an uncertain date prior to January 1, 2014, it is acceptable to enter 1/1/2014. If the date is after January 1, 2018 (1/1/2018) and the entity engaged in business in the City prior to the date it joined the combined group, the entity or someone filing on behalf of the combined group the entity is/was part of, will have to complete a Return to account for the portion of the year that the entity was not part of this combined group but was engaged in business in the City.

Column – Date Exited Group (Leave Blank if Not Applicable)

Enter the date the entity exited the group (if the entity is still part of the combined group leave blank). Entities filing separately that: (1) left a combined group during the tax year and were engaged in business in San Francisco after leaving the combined group (whether fully included in the combined group or not for the portion of the year that they were members); or (2) were partially included in a combined group for the entire tax year, should leave this blank if they are still engaged in business in San Francisco or should enter the date they ceased engaging in business in San Francisco. Entities filing separately that joined a combined group during the tax year and were engaged in business in San Francisco prior to that date (whether fully included in the combined group or not for the portion of the tax year that they were members) should enter the date they joined the combined group. If a date is entered prior to December 31, 2018 (12/31/2018) and the entity continued to engage in business in the City after the date it exited the combined group, the entity or someone filing on behalf of the combined group the entity is/was part of, will have to complete a Return to account for the portion of the year that the entity was not part of this combined group but was engaged in business in the City.

Column – Percent of Tax Year in Group

This column will calculate the number of days in 2018 each entity was in the combined group for this Return based on entries in the columns titled “Date Entered Group” and “Date Exited Group,” and divide by the total days in the year to arrive at the proportion of the year each entity was in the group. If the entity was in the group for the entire year, this column will display 100%.

Column – Adjusted Small Business Exemption

This column will multiply the entries in the column titled “Percent of Member in Group” and the result in the column titled “Percent of Tax Year in Group” by $300,000, the small business enterprise exemption threshold for the payroll expense tax for tax year 2018. If the entity was wholly in the group for the entirety of the year, this column will display $300,000. If an entity’s payroll expense for portion of the entity or tax year you are filing for is not proportionally representative of the entire tax year, the online Return may incorrectly apply the small business enterprise exemption.

Column – Count of Employees

Enter the number of San Francisco employees this entity had as of the last day of the tax year, or the last date it was included in this filing, whichever is applicable.

Column – San Francisco Payroll Expense

Enter your San Francisco payroll expense for 2018. Article 12-A of the Code provides rules for determining San Francisco payroll expense. This should include only the payroll expense for the portion of the entity and/or portion of the tax year that the entity was part of the combined group.

Column – San Francisco Payroll Expense Tax Before Credits and Exclusions

The online form will calculate the San Francisco Payroll Expense Tax for each entity, taking into account the small business enterprise exemption. If an entity’s payroll expense for portion of the entity or tax year you are filing for is not proportionally representative of the entire tax year, the online Return may incorrectly apply the small business enterprise exemption.

Summary Table – Combined Group Employee Count, San Francisco Payroll Expense and San Francisco Payroll Expense Tax Before Credits and Exclusions

The online form will sum all the count of employees entered, the San Francisco Payroll Expense of all entities that exceed the small business enterprise exemption threshold, and the San Francisco Payroll Expense Tax before credits and exclusions. If any of the taxpayers have applied to claim a credit or exclusion in the Return, the exclusion(s) will be applied on the Payroll Expense Tax Summary page, and the credits on the Obligation Summary page.

Example: Partial Member by Ownership Share

Corporation A and Corporation B are unitary with Partnership C, and each owns 30 percent of Partnership C. Partnership C had $400,000 of San Francisco payroll expense. Under California Franchise Tax rules, Partnership C would be included in Corporation A and B’s unitary group to the extent of their combined 60 percent ownership.

In this case, the combined group with Corporation A, Corporation B, and 60 percent of Partnership C should enter 60 percent as the percentage of Partnership C that is included in the Return in the column entitled “Percent of Entity Included in Filing (100% if wholly in Group).” The combined group would enter $240,000 ($400,000 x 60%) of Partnership C’s San Francisco Payroll Expense in the column entitled “San Francisco Payroll Expense.” The combined group would have $240,000 of taxable payroll expense before exclusions with respect to Partnership C, and would not be subject to the small business tax exemption with respect to Partnership C because Partnership C, as a whole, had over $300,000 in taxable payroll expense (i.e., the $240,000 is greater than $300,000 x 60%). The combined group would therefore owe $912 of Payroll Expense Tax before credits with respect to Partnership C ($240,000 x 0.38%).

While filing separately for the portion of its business not combined with Corporations A and B, Partnership C should enter 40 percent as the percentage of Partnership C that is included in the Return. Partnership C would enter $160,000 ($400,000 x 40%) of its San Francisco payroll expense in the column entitled “San Francisco Payroll Expense.” Partnership C would have $160,000 of taxable payroll expense before exclusions, and would not be subject to the small business tax exemption because Partnership C, as a whole, had over $300,000 in taxable payroll expense (i.e., the $160,000 is greater than $300,000 x 40%). Partnership C would therefore owe $608 of Payroll Expense Tax before credits on its separate Return ($160,000 x 0.38%).

 
Payroll Expense Tax Filing Summary

C2. Payroll Expense Tax Filing Summary

This page calculates your Payroll Expense Tax liability based on your entries on the previous page.

Line 1 – San Francisco Payroll Expense

Your entry or entries from the previous page.

Line 2 – Payroll Expense Exclusion

The system will automatically calculate any payroll exclusion you have stated on an exclusion page, if applicable. You must timely file your Return for exclusions to be available.

Line 3 – Net San Francisco Payroll Expense

The difference between lines 1 and 2.

Line 4 – Payroll Expense Tax Before Credits at @ 0.380%

The product of line 3 and 0.380% (0.00380). The system will automatically apply any small business tax exemption, which applies to entities with taxable payroll expense that does not exceed $300,000.

 
Lessor of Residential Real Estate Gross Receipts

D. Lessor of Residential Real Estate (Residential Landlord) Gross Receipts

You will be directed to this page if you selected “Yes” to indicate that you are a lessor of residential real estate (residential landlord) in the Filing Questionnaire. If you are not a residential landlord, click on the “Business Identification” tab above to change your answer.

Line 1—Business Activity

“Real Estate and Rental and Leasing Services” will be automatically selected for you.

Line 2—Enter the Number of Units Leased Out

Enter the number of units leased out. Only whole numbers are accepted entries, no decimals or fractions. For this question, a unit leased out for part of the year would be considered one unit.

Line 3—San Francisco Gross Receipts

Enter the total gross receipts attributable to the residential units in this building. This should include 100% of the gross receipts attributable to the residential units in the building, even if the units are rent controlled. Use the same method of accounting (i.e., cash or accrual) that you use for federal income tax purposes to determine when to include gross receipts for purposes of the Gross Receipts Tax.

Line 4 –Rent-Controlled Units

Mark “Yes” if you receive San Francisco gross receipts from the rental of real property to tenants in occupancy at rent-controlled units (i.e., any location in the City which is subject to the limits on rent increases pursuant to the Residential Rent Stabilization and Arbitration Ordinance, San Francisco Administrative Code, Chapter 37, Section 37.1 et seq.). Otherwise, mark “No”.

Line 5 – 50% of Gross Receipts from Rent-Controlled Units

The system will automatically calculate fifty percent (50%) of gross receipts from rent-controlled units if you selected “Yes” on line 4. You may exclude from total gross receipts in any tax year 50% of the total amount received from the rental of real property to tenants in occupancy at these rent-controlled units.

NOTE:
If you were both a lessor of residential real estate and were engaged in another business activity or activities in San Francisco in 2018, you are treated as a separate taxpayer (requiring a separate Business Account Number, or account numbers if a combined group) for all of your other business activities combined, as well as being treated as a separate taxpayer (requiring a separate Business Account Number) for each individual building in which you are a lessor of residential real estate.
Example: Lessor of Residential Real Estate Registration and Filing Requirements

Assume Corporation A leases 10 residential units and 5 commercial units in Building A, leases 3 residential units and 4 commercial units in Building B and generates $3,000,000 of gross receipts and $500,000 of payroll expense from these activities.

Based on rules analogous to those in Code section 904 or another appropriate cost accounting methodology, Corporation A allocates $350,000 of its payroll expense to the lease of its 9 commercial units, $100,000 to the lease of its 10 residential units in Building A, and $50,000 to the lease of its 3 residential units in Building B.

Based on its books and records, Corporation A determines that $2,000,000 of its gross receipts are from the lease of the 9 commercial units, $750,000 are from the lease of the 10 residential units in Building A, and $250,000 are from the lease of the 3 residential units in Building B.

Corporation A would have to file one Return reflecting the $350,000 payroll expense and $2,000,000 gross receipts of the 9 commercial units because its payroll expense and gross receipts were not less than $300,000 and $1,120,000, respectively.

Corporation A would also have to register as a separate person and file one Return (may be one Form L-2018, if not claiming any credits or exclusions) reflecting the $100,000 payroll expense and $750,000 gross receipts for the 10 residential units in Building A because Corporation A leases more than 3 residential units in Building A. Corporation A would not need to file a Return for the 3 residential units in Building B because Corporation A leases fewer than 3 residential units in Building B and the $50,000 payroll expense allocated to the residential units in Building B is less than $300,000. Corporation A would have to register as a separate person for the 3 residential units in Building B because it has payroll expense allocated to that building.

 
Online EZ Gross Receipts

D. Online EZ - Gross Receipts

If you have selected to use the Online EZ filing, complete the Online EZ filing as described below. The Online EZ filing is designed to provide an easier filing for businesses that are wholly within San Francisco and are primarily engaged in one business activity. If you did not elect to use the Online EZ filing, you will not see this page.

Line 1—Business Activity

Select from the drop-down menu the business activity from which you derived the greatest amount of your gross receipts for tax year 2018. For a description of the business activities, refer to our NAICS page.

Line 2—Gross Receipts

Enter the total gross receipts for your business. Include the gross receipts from all your business activities—not just the business activity you selected via the drop-down menu.

In general, “gross receipts” includes all amounts received or accrued from whatever source derived, including, but not limited to, amounts derived from sales, services, dealings in property, interest, rent, royalties, dividends, licensing fees, other fees, commissions, and distributed amounts from other business entities. Gross receipts generally include, but are not limited to, all amounts that constitute gross income for federal income tax purposes.

Use the same method of accounting (i.e., cash or accrual) that you use for federal income tax purposes to determine when to include gross receipts for purposes of the Gross Receipts Tax.

 
Identification of Business Activities

D. Identification of Business Activities

If you are not eligible to use the Online EZ filing, the system will automatically direct you to the standard Gross Receipts Tax form, commencing with this page: D. Identification of Business Activities. If you are eligible and complete the Online EZ filing, you will not see these pages.

Check the box corresponding to each business activity in which you engaged in 2018, regardless of the amount of gross receipts that the business activity generated. Most activities are categorized by their 2012 North American Industry Classification System (“NAICS”) code. For more information on the 2012 NAICS codes, go to www.census.gov/eos/www/naics. The “Biotechnology” and “Clean Technology” businesses are described in Code sections 906.1 and 906.2, respectively. If you are engaged in any business activities not listed on this page, check the box next to line 20, and describe the activity or activities in the field that appears.

Note: Interest earned on savings accounts and other passive investment receipts may be reported in your primary business activity and do not need to be listed as a separate business activity.

 
Apportionment

E. Apportionment

If you selected only Accommodations and/or Real Estate and Rental and Leasing Services as your business activity or activities, you will not see this page. If you selected any other business activities, and you derived gross receipts from both within and outside San Francisco, your San Francisco gross receipts will be determined, at least in part, by apportionment. To calculate your apportionment percentage, enter your total payroll and San Francisco payroll for 2018.

Total Payroll

Total payroll is the total worldwide compensation paid by you and any related entities, unless you made a valid water’s edge election for California Franchise Tax purposes, in which case your total payroll is determined in accordance with that election. If you have employees, “compensation” means wages, salaries, commissions and any other form of remuneration paid to those employees for services. If you have no employees, compensation includes all taxable income for federal income tax purposes of your owners or proprietors who are individuals. If you had no payroll during 2018, enter zero.

Total San Francisco Payroll

San Francisco payroll is determined by apportioning total payroll under Code section 904 (the rules applicable for determining your taxable San Francisco payroll expense for Payroll Expense Tax purposes). If you had no San Francisco payroll during 2018, enter zero.

 
Calculation of Gross Receipts

F. Calculation of Gross Receipts

For each business activity selected, the system will walk you through the calculation of your taxable gross receipts on a separate page F. If you are a combined group, provide this information on a water’s edge or worldwide basis, depending on the election you made that governs your California Franchise Tax Board filing for 2018. To determine the gross receipts to include in the “San Francisco” column, use the rules in Code section 956.1, including the gross receipts of all related entities, regardless of the entities’ individual connections to San Francisco.

If the San Francisco gross receipts for a business activity are determined wholly by allocating receipts according to Code section 956.1, then only the “San Francisco” column will show and allow data entry. Similarly, if the San Francisco gross receipts are determined wholly by apportioning based on payroll according to Code section 956.2, then only the “Total” column will show and allow data entry. For business activities that use both allocation and payroll apportionment, both columns will display and allow data entry.

General Instructions for Entering Gross Receipts

In general, “gross receipts” includes all amounts received or accrued from whatever source derived, including, but not limited to, amounts derived from sales, services, dealings in property, interest, rent, royalties, dividends, licensing fees, other fees, commissions, and distributed amounts from other business entities. Gross receipts generally include, but are not limited to, all amounts that constitute gross income for federal income tax purposes.

In lines 1-9,
enter your gross receipts for that business activity. Enter amounts even if excludable as gross receipts under the Code, because exclusions will be considered in lines 10-17. Enter amounts only once, even if they qualify in more than one of lines 1-9.
In lines 10-17,
enter any exclusions from your total gross receipts for that business activity as reported on lines 1-9. Enter amounts only once, even if they qualify in more than one of lines 10-17. Only enter amounts that you included in lines 1-9.

Clicking “Save & Continue” at the bottom of the page will bring you to a separate page F for your next business activity. Each of the business activities selected is listed across the top of the page. Once you have completed a page F for all business activities selected, the system will automatically calculate your Gross Receipts Tax.

Line 1 – Sales

Enter your gross receipts or sales for the business activity in 2018, except for amounts listed on lines 2 through 9. Include gross receipts in the year that they are recognized as gross income for federal income tax reporting purposes. Do not include as gross receipts cash discounts allowed or taken on sales, or cash and credit refunds made to customers for returned merchandise.

Line 2 – Rent received from real property

For the business activity selected, enter the sum of all rental receipts (i.e., rent payments to you), whether received in cash or otherwise, for the lease or rental of real property in 2018, including any payments for services that are part of the lease or rental.

Line 3 – Royalties received

For the business activity selected, enter all royalties received or accrued in 2018.

Line 4 – Interest, Dividends, and Other Amounts From the Ownership or Sale of Financial Instruments

For the business activity selected, enter the sum of all interest, dividends, and other amounts received or accrued from the ownership or sale of financial instruments in 2018. “Financial instruments” include: 1. Stocks or other similar written instruments evidencing a right to participate in the assets of any business; 2. Bonds or other evidence of indebtedness; and 3. Any other marketable securities.

To the extent that any loss on the sale or exchange of financial instruments in 2018 reduces your gross income for federal income tax purposes in 2018, you can reduce your gross receipts from the sale or exchange of other financial instruments in 2018 by the amount of that loss, but in no event shall those receipts be less than zero.

Line 5 –Amounts distributed from business entities

For the business activity selected, enter the sum of all distributions from business entities received or accrued in 2018.

Line 6 – Licensing and related fees received

For the business activity selected, enter the sum of all licensing and related fees received or accrued in 2018.

Line 7 – Commissions

For the business activity selected, enter the sum of all commissions received or accrued in 2018.

Line 8 – All Taxes and Other Governmentally Imposed Fees

For the business activity selected, enter the sum of all taxes and governmentally imposed fees received or accrued in 2018.

Line 9 – Other Amounts

For the business activity selected, enter the sum of any other amounts received or accrued in 2018, but not included in lines 1-8, including, but not limited to, amounts that constitute gross income for federal income tax purposes.

Line A – Subtotal Gross Receipts

This line will sum lines 1 through 9 automatically.

Line 10 – Related Entities

For the business activity selected, enter all amounts received from or charged to any related entity (as defined in Code section 952.5) in 2018.

Line 11 – Investment receipts—Interest, Dividends, and Other Amounts

For the business activity selected, enter the sum of all interest, dividends, and other amounts received from the ownership or sale of financial instruments and distributions from business entities in 2018, provided such items are directly derived exclusively from the investment of capital and not from the sale of property other than financial instruments or from the provision of services to any person. “Financial instruments” include: (1) stocks or other similar written instruments evidencing a right to participate in the assets of any business; (2) bonds or other evidence of indebtedness; and (3) any other marketable securities.

Line 12 – Allocations of Income, Gain, and Distributions From an Investment In a Pass-through Entity

For the business activity selected, enter the sum of all allocations of income or gains, or distributions (including returns on capital) in 2018 from an entity treated as a pass-through entity for federal income tax purposes, provided such allocations or distributions are derived exclusively from your investment in such entity, and not from any other property sold to, or services provided to, such entity.

Line 13 – Distributed Share of Gross Receipts From a Pass-through Entity Subject to the Gross Receipts Tax

For the business activity selected, enter the sum of all gross receipts received in 2018 from a pass-through entity that is subject to the Gross Receipts Tax.

Line 14 – Receipts From the Sale of Real Property Subject to the Real Property Transfer Tax

For the business activity selected, enter the sum of all receipts received from the sale of real property in 2018 with respect to which the Real Property Transfer Tax imposed by Article 12-C of the Code has been paid to the City. Per Tax Collector Regulation 2016-1, a person may only exclude from gross receipts those receipts from the sale of real property where the Real Property Transfer Tax imposed by Article 12-C of the Code was paid with respect to that particular sale by December 31 of the tax year in which the gross receipts at issue would otherwise be subject to the gross receipts tax in Article 12-A-1.

Line 15 – Excludable Taxes

For the business activity selected, enter the sum of all excludable taxes in 2018. Taxes excluded from gross receipts include only: · Taxes imposed on or with respect to retail sales; · Taxes imposed upon a person for which that person is reimbursed by means of a separately stated charge to a purchaser, lessee, licensee or customer; and · Third-party taxes that a taxpayer collects from or on behalf of the taxpayer’s customers and remits to the appropriate governmental entity imposing such tax.

Line 16 – Other Amounts

For the business activity selected, enter the sum of any other amounts excludable by law if included in lines 1-9 and not otherwise included in lines 10-15 or line 17. Include only amounts excluded as gross receipts, and not any reductions from the Gross Receipts Tax because of any credits, as these will be considered after calculating your gross tax liability.

Line B – Subtotal Exclusions

This line sums lines 10 through 16.

Line C – Total Gross Receipts Before Allocation/Apportionment

This line is the difference between lines A and B. The “San Francisco” column is your gross receipts allocated according to Code section 956.1 (if applicable to this business activity).

Line D – Allocated/Apportioned Gross Receipts

This line applies the appropriate allocation and apportionment methodology to your gross receipts.

For business activities that use 50% apportionment and 50% allocation (i.e., those activities with both “Total” and “San Francisco” columns), the calculation is: (1) Line C of your “Total” column multiplied by your apportionment percentage multiplied by 50% plus (2) Line C of your “San Francisco” column multiplied by 50%.

For business activities that use only apportionment (i.e., those activities with only a “Total” column), the calculation is: Line C of your “Total” column multiplied by your apportionment percentage.

For business activities that use only allocation (i.e., those activities with only a “San Francisco” column), this line will equal line C of your “San Francisco” column.

Line 17 – Amounts Paid to Subcontractors
Note: This line will only show in the “Construction” business activity page.

Your San Francisco gross receipts for the business activity of construction may be reduced by amounts paid in 2018 to a subcontractor possessing a valid business registration certificate with the City and County of San Francisco during the tax year to the extent that those amounts were included in line C of the “San Francisco” column. Do not subtract any other costs, including, without limitation, costs for materials, fees, equipment, or other services. To claim the reduction for payments to subcontractors, you must maintain an itemized schedule of payments to subcontractors and information sufficient to enable the Tax Collector to verify that the subcontractor possessed a valid business registration certificate with the City.

Per Tax Collector Regulation 2016-2, after allocating and apportioning its gross receipts under Section 953.5(c), a construction contractor may reduce its San Francisco gross receipts for the business activity of construction by any amounts paid to a subcontractor for work performed with respect to property in the City if the subcontractor possesses a valid business registration certificate with the City during the tax year. No reduction is permitted for any other costs, such as materials, fees, equipment or other services, and the reduction may not reduce the construction contractor’s taxable gross receipts for the business activity of construction below $0. To support the reduction, the contractor must provide to the Tax Collector upon request an itemized schedule of payments to the subcontractors and information sufficient to enable the Tax Collector to verify that the subcontractors possessed valid business registration certificates with the City during the tax year.

If you are reducing your construction gross receipts by amounts paid to subcontractors, click the button labeled “Subcontractor Information” to access the Subcontractor Information pop up box. In the Subcontractor Information pop up box, click “Add Subcontractor Entry” to enter details for the subcontractor project location and payment. Click “Add Subcontractor Entry” again to enter additional subcontractor payments.

Column – BAN (Business Account Number)

Enter the 7 digit Business Account Number of the subcontractor.

Column – Business Name

This area will populate with the business name matching the 7 digit BAN in our system. If you did not enter a valid BAN, a name will not populate, and the message “Invalid BAN” will appear.

Column – Project Location

Enter the address within the City and County of San Francisco where the subcontractor performed work. Note: if the project location is at SFO Airport, Daly City, South San Francisco, or any other surrounding cities, it is not in the City and County of San Francisco, and is not eligible for this exclusion.

Column – Payment Amount

Enter the total amounts paid to the subcontractor for work at this project location for the tax year.

To add a line, select the green “Add a Subcontractor Entry” button on the bottom left.. To remove a line item, click the X at the far right of the row.

A – San Francisco Receipts (line C)

For reference, the form displays the gross receipts amount from line C on Gross Receipts Page F for the Construction business activity. Below the table, the form will display your reported allocated San Francisco gross receipts and the sum of the subcontractor payments. Subcontractor payments should not exceed allocated San Francisco gross receipts. If your filing reflects this result, you may have an error in your reporting.

B – Sum of payments made to subcontractors, from above

The form will sum the payments entered in the “Payment Amount” column and display the result here. After the pop up box is closed, this number will also display in line 17 on Gross Receipts Page F for the Construction business activity. You may edit the amounts by selecting the Subcontractor Information button. Our filing does not support spreadsheet upload this year

Line E – Allocated/Apportioned Gross Receipts for Construction After Subcontractor Exclusion
Note: This line will only show in the “Construction” business activity page. This line is the difference between line D and line 17.
 
Calculation of San Francisco Gross Receipts

G. Calculation of San Francisco Gross Receipts

This page summarizes your San Francisco gross receipts based on your entries on the prior pages. You may click the green bars above this table to edit your responses.

 
Calculation of Gross Receipts Tax

H. Calculation of Gross Receipts Tax

This page applies the appropriate tax rate(s) to your San Francisco gross receipts. If you or your combined group is engaged in multiple business activities, this page applies the rules specified in Code section 953.9. These rules include:

If more than 80% of your San Francisco gross receipts are derived from business activities in one tax rate category, then that tax rate category applies to all of your gross receipts derived from all business activities.

The small business exemption provided in Section 954.1 applies only if the sum of your San Francisco gross receipts from all business activities does not exceed $1,120,000 in total.

The progressive tax rates apply on an aggregate basis for businesses with multiple sets of activities.

The applicable rate for each set of business activities is determined in numbered order of the Code sections describing each set of business activities; i.e., activities described in Code section 953.1 are determined first, Code section 953.2 second, and so on.

The tax rate(s) applicable to any set of activities after the first shall be determined by adding together the San Francisco gross receipts for all previous sets of activities and applying the rate scale commencing with the next dollar. For instance, if you are engaged in a Retail Trade and Food Services and you have $1 million of gross receipts from your Retail Trade, your Gross Receipts Tax attributable to Food Services is calculated starting with the second-tier tax rate for gross receipts from $1,000,001 to $2,500,000.

Your Gross Receipts Tax liability is the sum of your liabilities for each set of business activities.

This page will summarize the gross receipts, tax rate, and Gross Receipts Tax attributable to each of your business activities, pursuant to the rules above. Line F totals the Gross Receipts Tax before credits for all your business activities.

 
Quarterly Penalties

Quarterly Penalties Page

Your quarterly payment obligation is 25% of the lesser of the tax liability shown on your 2017 Return or the tax liability shown on your 2018 Return and is due by the quarterly deadlines (end of April, July, and October). If you did not remit sufficient estimated tax payments by the quarterly deadlines, then a 5% penalty will be imposed. If you are not subject to any quarterly penalty, you will not see this page.

Quarterly Payments Displayed

This page will display all estimated tax payments we have received up through October 31, 2018. If you made a payment on or after November 1, 2018, that payment will display on the next page, Tax Year 2018 Annual Business Tax Payments page.

If you believe the payment information displayed on this page is incorrect, you may check the box next to “I disagree with the payment information displayed above” and enter the payment information from your records. Taking this action will trigger a review of your account by our staff. However, taking this action will not automatically affect any estimated tax payment penalties or the amount due in the Online Payment Portal. It may take up to 10 business days to adjust your account, if needed.

Quarterly Payment Obligation Calculation

The required estimated tax payments are the lesser of the tax liability shown on your 2017 Return or the tax liability shown on your 2018 Return. If you believe the 2017 filing information displayed is incorrect, you may check the box next to “I disagree with the 2017 Annual Tax Obligation amount displayed above” and enter the 2017 filing information from your records.

Estimated Tax Payment Penalties

The Board of Supervisors reduced the estimated tax payment penalties to 5% from up to 20% in March 2017, effective for tax year 2017 and subsequent tax years. If you did not remit sufficient estimated tax payments by the quarterly deadlines (end of April, July, and October) then a 5% penalty will be imposed. The penalty calculation is provided on the “Quarterly Penalties” page.

The required estimated tax payments are the lesser of the tax liability shown on your 2017 Return or the tax liability shown on your 2018 Return. Overpayment in the payroll expense tax is credited to underpayment in the gross receipts tax and vice versa.

 

2018 Annual Business Tax Payment Summary page

This page will display all tax payments we have processed for tax year 2018 Payroll Expense Tax, Gross Receipts Tax and/or Administrative Office Tax.

If you believe the payment information displayed on this page is incorrect, you may file under protest by checking the box next to “I disagree with the payment information displayed above” and enter the payment information from your records. Taking this action will trigger a review of your account by our staff. However, taking this action will not automatically affect any estimated tax payment penalties or the amount due in the Online Payment Portal. It may take up to 10 business days to adjust your account, if needed.

 
Obligation Summary

Obligation Summary

This page summarizes your total Payroll Expense Tax and Gross Receipts Tax obligations on a single page. Note that for filings submitted after the 2/28/2019 filing deadline, the penalty and interest calculations on this page are provided only as estimates and may not be accurate. Review the amount due displayed in the Online Payment Portal for penalty calculations that consider late payments.

Line 1 – Total Payroll Expense Tax/Gross Receipts Tax Before Credits

This line displays your total tax amounts prior to tax credits, based on your filing.

Line 2 – Quarterly Payment Penalty

This line displays the quarterly payment penalty calculated on the Quarterly Payments page, if applicable.

Line 2 – Payroll Expense Tax Credits

This line displays tax credits, including the Enterprise Zone Tax Credit and “Payroll Expense Tax Exclusion” Credit, if applicable. The “Payroll Expense Tax Exclusion” Credit is apportioned proportionately between the Gross Receipts Tax and Payroll Expense Tax.

Line 3 – Total Payroll Expense/Gross Receipts Tax After Credits

This line displays the total taxes after credits.

Line 4 – Payments Received on or before 2/28/2019

This line displays all tax payments processed on or before 2/28/2019.

Line 5 – Payments Received on or before 2/28/2019 Applied to Quarterly Penalty

This line displays payments received on or before 2/28/2019 that were applied to the quarterly payment penalty, if applicable. Payments are applied to quarterly penalty before being applied to calculated tax.

Line 6 –Payments Received on or before 2/28/2019 Applied to Payroll Expense Tax/Gross Receipts Tax Tax

This line displays the payments received on or before 2/28/2019 that were applied to the Payroll Expense Tax/Gross Receipts Tax.

Line 7 – Payroll Expense Tax/Gross Receipts Tax

This line displays the Payroll Expense Tax or Gross Receipts Tax due after payments received on or before 2/28/2019 have been applied.

Line 8 – Quarterly Payment Penalty

This line displays the quarterly payment penalty due after payments received before 2/28/2019 have been applied.

Lines 9 – 12 – Penalties, Interest, and Fees

These lines display penalties, interest, and fees for late filings, if applicable. Note that for filings received after the 2/28/2019 filing deadline, these calculations are provided only as estimates and may not be accurate. Review the amount due displayed in the Online Payment Portal for penalty calculations that consider late payments.

Line 13 – Net Amount (Payroll Expense Tax/Gross Receipts Tax)

The system will calculate the total obligation due, net of payments received on or before 2/28/2019 and with penalties, interest, and fees (if applicable). A positive number reflects a balance due. A negative number reflects an overpayment.

Line 14 – Payments Received on or after 3/1/2019

This line displays all tax payments processed on or after 3/1/2019.

Line 15 – Net Amount Due (Payroll Expense Tax/Gross Receipts Tax) after payments

This line displays the amount due after all payments have been applied. Note that for filings submitted after the 2/28/2019 filing deadline, these calculations are provided only as estimates and may not be accurate. Review the amount due displayed in the Online Payment Portal for penalty calculations that consider late payments.

Total Obligation Due / Amount Overpaid

The system will calculate the total obligation due, net of payments and with penalties, interest, and fees (if applicable). A positive number reflects a balance due. A negative amount reflects an overpayment. Note that for filings submitted after the 2/28/2019 filing deadline, these calculations are provided only as estimates and may not be accurate. Review the amount due displayed in the Online Payment Portal for penalty calculations that consider late payments.

Apply to Future Obligations or Refund Request (Only Displays for Overpayments)

If your Total Obligation Due/Overpayment is negative, you may request to apply the overpayment to future tax obligations or request a refund from the Office of the Treasurer & Tax Collector. Fields that give you these options will display. The form defaults to request to apply your overpayment to future tax obligations. If you select to apply to future obligations and the amount of your 2018 overpayment exceeds the sum of your 2019 Quarterly obligations, the difference will be reviewed for refund.

You may select the field to request a refund.

Your request to apply to future obligations or refund will be reviewed and may be applied to outstanding delinquencies before being applied to future obligations or refunded.

If you have overpaid your taxes but this page does not reflect an overpayment, you must file a request to apply the overpayment to a future obligation or a refund form and/or claim for refund form within the time period mandated by law or you will forfeit the amount of your overpayment. If you checked the box requesting a refund and do not receive a check from the Tax Collector, you must file a claim for refund form within the time period mandated by law to obtain your refund.

NOTE: If your business is closed, or if your 2018 Annual Business Tax Return results in zero tax due, you will not have the option of requesting to apply overpayments to future tax obligations. In these scenarios, the overpayment will be reviewed for a refund.

Community Challenge Grant

If you would like to designate a portion of your tax liability on line 1 to the Neighborhood Beautification and Graffiti Clean-up Fund (also known as the "Community Challenge Grant Program") you may:

1. Check the box at left to designate 3.3 percent (0.033) of your tax liability in the box at the right; or

2. Check the box and enter an amount in the box at right up to 3.3 percent of your tax liability (for example, $330 if your tax liability is $10,000).

This designation will not increase your tax liability, but will designate a portion of the tax you pay to go to the Community Challenge Grant Program.

 
Early Care and Education Commercial Rents Tax

Early Care and Education Commercial Rents Tax

The ‘Early Care and Education Commercial Rents Tax Ordinance’ (Commercial Rents Tax becomes operative on January 1, 2019. This tax generally applies to businesses leasing commercial space in the City and generally does not apply to businesses exempt from Gross Receipts Tax.

In addition to the existing Gross Receipts and Payroll Expense Taxes, this measure imposes a new gross receipts tax of:

  • 1% on the amounts a business receives from the lease or sublease of warehouse space in the City;
  • 3.5% on the amounts a business receives from the lease or sublease of other commercial spaces in the City.

Commercial space is any building or structure, or portion of a building or structure, that is not residential real estate, as defined in Code section 954.1. For the purposes of this tax, commercial space does not include any building or structure, or portion of a building or structure, that is used for:

  • Industrial Use, as defined in section 102 of the Planning Code
  • Arts Activities, as defined in section 102 of the Planning Code
  • Retail Sales or Service Activities or Retail Sales or Service Establishments that are not Formula Retail uses as defined in sections 303.1(b) and 303.1(c) of the Planning Code

Businesses will need to report their gross receipts from the lease/sublease of warehouse space and other commercial space during tax year 2018 on their Return but do not owe the Commercial Rents Tax for this year.

Line 1 – Total amounts received

Enter the total amounts received from leasing real estate in San Francisco, including all amounts received from subtenants.

If the amount entered is zero, you will not see additional questions on this page. Click "Save & Continue" to submit your filing.

If the amount entered is greater than zero, you will see additional questions on this page. With respect to lines 2 through 7 on this page, include amounts only once, even if they would qualify in more than one line.

Line 2 – Amounts received from Residential Real Estate

Enter the total amounts received from residential real estate. Note, if you are receiving rent from residential real estate and reporting such rent with other business activities, you are currently not in compliance with local business taxes. Each building receiving gross receipts from residential real estate is considered a separate person under local tax laws and must register and file separately.

Line 3 – Amounts received that were subject to the Transient Occupancy Tax

Enter the total amounts received that were subject to the Transient Occupancy Tax. Include amounts where the Transient Occupancy Tax was not collected due to an exemption in Article 7, such as the exemption for permanent residents.

Line 4 – Amounts received that were subject to the Parking Tax

Enter the amounts received that were subject to the Parking Tax. Include amounts where the Parking Tax was not collected due to an exemption in Article 9, such as the exemption for permanent residents.

Line 5 – Amounts received from Industrial Space

Enter the amounts received that were from any building or structure, or portion of a building or structure, that is used for Industrial Use as defined in section 102 of the Planning Code.

Line 6 – Amounts received from Arts Activity Space

Enter the amounts received that were from any building or structure, or portion of a building or structure, that is used for Arts Activities as defined in section 102 of the Planning Code.

Line 7 - Amounts received from Retail Space that is not Formula Retail

Enter the amounts received that were from any building or structure, or portion of a building or structure, that is used for Retail Sales or Services Activities or Retail Sales or Service Establishments, as defined in section 303.1(c) of the Planning Code, that are not Formula Retail uses as defined in section 303.1(b) of the Planning Code.

Line 8 – Subtotal

The form will subtotal lines 2 through 7 and display them in line 8.

Line 9 – Taxable Commercial Space

The form will subtract line 8 from line 1 and display the difference in line 9. These are your taxable receipts from Commercial Space.

Line 10 – Warehouse Space

Enter the amounts received from Commercial Space reported in line 1 that were received from “Warehouse Space.” Warehouse Space includes Commercial Space used for Commercial Storage, for Volatile Materials Storage, for Wholesale Storage, or as a Storage Yard, as each of these capitalized terms is defined in section 102 of the Planning Code.

Line 11 – Amounts from Exempt Entities

Of the amounts reported for Warehouse Space in line 10, enter the amounts received from qualified non-profit, government, or other exempt entities as provided in section 2105 of the Code. For the purposes of the Commercial Rents Tax, a qualified non-profit is an organization that is exempt from income taxation by Chapter 4 (commencing with section 23701) of Part 11 of Division 2 of the California Revenue and Taxation Code of Sub-chapter F (commencing with section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, as amended, as qualified by sections 502, 503, 504, and 508 of the Internal Revenue Code of 1986, amended.

Line 12 – Warehouse Base

The form will subtract line 11 from line 10 and will display the difference in line 12. This is your taxable base from Warehouse Space.

Line 13 – Warehouse Tax Rate

The Warehouse Space tax rate is 1.00%.

Line 14 – Warehouse Tax

This form will multiply line 12 by Line 13 and display the result in Line 14. This is your tax for Warehouse space.

Line 15 – Commercial Space

Enter the amount received from Commercial Space.

Line 16 – Amounts from Exempt Entities

Of the amounts reported for Commercial Space in line 15, enter the amounts received from qualified non-profit, government, or other exempt entities as provided in section 2105 of the Code. For the purposes of the Commercial Rents Tax, a qualified non-profit is an organization that is exempt from income taxation by Chapter 4 (commencing with section 23701) of Part 11 of Division 2 of the California Revenue and Taxation Code of Sub-chapter F (commencing with section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, as amended, as qualified by sections 502, 503, 504, and 508 of the Internal Revenue Code of 1986, amended

Line 17 – Commercial Base

The form will subtract line 16 from line 15. This is your taxable base from Commercial Space.

Line 18 - Commercial Space Rate

The Commercial Space tax rate is 3.5%.

Line 19 – Tax from Commercial Space

The form will multiply line 17 by line 18 and display the result in line 19. This is your tax from Commercial Space.

Line 20 – Total Commercial Rent Tax

The form will add Line 14 and Line 19 and display the result in Line 20. This is the total Commercial Rents Tax.

Line 21 - Childcare Tax Credit

The Code permits a credit against the Commercial Rents Tax if you lease or provide Commercial Space in a property in the City for a qualifying child care facility that operates for more than six months in a tax year. The calculation and rules applicable to this credit are provided in Code section 21601.1. Enter the amount of the credit to which you are entitled to here.

Line 22 – Total Commercial Rent Tax after Childcare Tax Credit

The form will subtract line 21 from line 20 and display the result in line 22. This is the total Commercial Rent Taxes that you would have paid in 2018 if the Commercial Rent Tax had been in place. It may be the basis of the estimated tax payments for tax year 2019.

Line 23 – Estimated 2019 Commercial Rents Tax Quarterly Obligation

This is 25% of the amount in line 22. This amount may be used as the estimated tax payment amount for each quarter for tax year 2019. If your Commercial Rents Tax liability in each quarter in 2019 is less than the amount calculated in this line you may pay a lesser estimated tax payment for that quarter.

 
Taxpayer Statement

Taxpayer Statement

Enter the information requested on the Taxpayer Statement page and, after agreeing with the terms of the Taxpayer Statement, click “Submit.” If you are an agent of the taxpayer authorized to sign this Return on the taxpayer’s behalf, you must have a validly executed Power of Attorney. A Power of Attorney Declaration Form POA-1, along with instructions as to how to use the form to grant an individual authority to file a Return on behalf of a taxpayer, is available on the website of the Treasurer & Tax Collector at https://sftreasurer.org/biz_additional .

Clicking “Submit” will transmit your Return to the Office of the Treasurer & Tax Collector. By clicking “Submit” you are certifying under penalty of perjury that you are the taxpayer (including an officer, general partner, member manager, executor, trustee, fiduciary, or other individual with the authority to bind the taxpayer), or an agent of the taxpayer authorized to sign this Return on behalf of the taxpayer pursuant to a validly executed Power of Attorney, and that you have examined the Return and all accompanying schedules or worksheets and have determined that, to the best of your knowledge and belief, all of the information is true, correct, and compliant with all the requirements in Articles 6, 12, 12-A, 12-A-1 and 21 of the Code. You are also acknowledging that you are providing information in response to a request for financial information pursuant to Code section 6.5-1, and that you are required by law to complete this Return in its entirety and that the Return is subject to audit.

View Filing Data

Selecting this button at the bottom of the Taxpayer Statement page allows you to review a copy of your Return for your records prior to submission. You must enable popups in your browser to access the document. Do not mail this printed copy to our office.

After clicking “Submit” you will be shown the “Filing Submitted” popup screen. Only now is your filing submitted.

Click “Continue” to print your Return and review payment options.

Do not mail printed copies of your submitted Return to our office.
 
Paying, Downloading or Emailing your Return

Payment Options, Downloading or Emailing your Return

This page allows you to access the Office of the Treasurer & Tax Collector’s online payment portal to pay online or to print a payment coupon for mailing a payment. Note, if your account is paid in full, you may not be able to access the Payment Portal from this page. If you still wish to pay, you must pay by check or in person. Please select here for troubleshooting if you still wish to pay.

Payments are due on or before the last day of February of the year following the tax year, unless the Tax Collector has granted you an extension prior to the due date. Online forms must be transmitted before midnight on February 28, 2019. Payments must also be received or postmarked on or before February 28, 2019. Failure to meet these deadlines will result in penalties, interest, and fees.

If a payment is not honored by a financial institution, for any reason, the tax payment is null and void and a $50 returned payment fee will be charged.

Payment Options

Click Payment Options to go to the Payment Portal, which will display your current obligations. Your Business Account Number and Business Name are displayed at the top of the page.

Note that payment of displayed obligations may not constitute payment in full of all tax liabilities.

Download or Email Return

Click “Download” to open a copy of your Return in a new window to be saved. Click “Email” to have a copy of your filing emailed to an email address.

 
Payment Options

Payment Options

The Office of the Treasurer & Tax Collector’s online payment portal allows you to print a payment coupon for mailing a payment, or to make an online payment. Payments are due on or before the last day of February of the year following the tax year, unless the Tax Collector has granted you an extension prior to the due date. Online forms must be transmitted before midnight on February 28, 2019. Payments must also be received or postmarked on or before February 28, 2019. Failure to meet these deadlines will result in penalties, interest, and fees.

If a payment is not honored by a financial institution, for any reason, the tax payment is null and void and a $50 returned payment fee will be charged.

To Pay By Check:

Print Payment Stub will generate a payment coupon for you to mail in your payment or pay in person. Please note that if you select more than one tax or fee to pay, the payment coupon will appear as a table on the page and you will have to submit the entire page with your check so our office can allocate your payments correctly.

Submit only the payment stub with check payable to "San Francisco Tax Collector”, write the Business Account Number on your check.

Mail to: San Francisco Tax Collector, P.O. Box 7425, San Francisco, CA 94120-7425.

To Pay In Person at City Hall

Acceptable forms of payment: cash, check (personal, business, money order, cashier's check) and using the public access computers to pay by credit card, debit card, electronic check (eCheck) during business hours (Monday through Friday, excluding holidays, from 8:00 am to 5:00 pm) at:

Treasurer & Tax Collector's Office - City Hall, Room 140, 1 Dr. Carlton B. Goodlett Place, San Francisco, CA 94102

To Pay by Electronic Transfer (Wire Transfer through Federal Wire System or ACH), submit a service request for instructions.

 

To Pay Online (Payment Portal)

Electronic payments with debit, credit or electronic check (eCheck) are processed through our service provider CityBase. Electronic Check will take you to our online payment partner CityBase to pay by electronic check. Please note that there is no convenience fee for this service.

Please read the information on the CityBase payment page about acceptable payment types and convenience fees associated with each. Be advised that CityBase confirmation only indicates a receipt of your payment information. It may take 5-10 business days for the payment to process and clear with your financial institution. See additional online payment instructions below.

On the Payment Options and Accessing Your Return page, click Payment Options to go to the Payment Portal, which will display your current and paid obligations. For your information, Business Account Number, Business Name, and address on file are displayed at the top of the page.

Note that payment of displayed obligations may not constitute payment in full of all tax liabilities. This does not reflect any obligations referred to collections.

The Payment Portal contains two tabs; “Due” and “Paid.” If your business has filed taxes and fees in the past year, those obligations will display on this page in addition to your Gross Receipts Tax and/or Payroll Expense Tax obligation(s) for tax year 2018.

Due Tab

The first tab is “Due,” which displays all taxes and fees that have been filed, but not paid.

Select to Pay Column

You may click the button at the top of the list of obligations to “Select All” or “Unselect All” obligations. You may also check the box in each row of the column “Select to Pay” to select individual taxes/fees to pay.

Tax Type Column

This column provides a description of the tax or fee that has an obligation. Most businesses will just see “Gross Receipts” or “Payroll Expense” unless you have other obligations.

Tax Year / Period

This column provides the year and period for the tax or fee. For the annual filing, the four digit tax year and the period “04” will be displayed as “2018/04” for each tax. Other taxes or fees may be displayed.

Name

This column displays your business name.

Street Address

This column displays the address we have on file.

Bill Number

This number is for internal use.

Amount Due

This column displays the amount due for each obligation.

Amount to Pay

The cells in this column are set by default to zero. Once you check the box on the left to select an obligation to pay, the amount to pay will display in this column. If you do not wish to pay this amount, you may edit the amount in this cell to an amount less than the amount due. This action will change the amount you pay by credit/debit or the amount on the payment coupon, depending on the payment option you choose. Note that penalties and interest will accrue on unpaid amounts remaining after deadlines until paid.

If an obligation you wish to pay does not appear on this screen, it may be paid in full and is on the Paid Tab. If you need further assistance, submit an online request for service, or call 3-1-1 from within San Francisco or 415-701-2311 outside of San Francisco.