San Francisco County Municipal Code § 953.2 Gross Receipts

TRANSPORTATION AND WAREHOUSING; INFORMATION; BIOTECHNOLOGY; CLEAN TECHNOLOGY; AND FOOD SERVICES. (a) The gross receipts tax rates applicable to the business activities of manufacturing, transportation and warehousing, information, biotechnology, clean technology, and food services are: (1) For tax years beginning on or after January 1, 2018 and ending on or before December 31, 2020: 0.125% (e.g., $1.25 per $1,000) for gross receipts between $0 and $1,000,000 0.205% (e.g., $2.05 per $1,000) for gross receipts between $1,000,001 and $2,500,000 0.37% (e.g., $3.70 per $1,000) for gross receipts between $2,500,001 and $25,000,000 0.475% (e.g., $4.75 per $1,000) for gross receipts over $25,000,000 (2) For the business activities of manufacturing and food services for tax years 2021 through and including 2024: 0.088% (e.g., $0.88 per $1,000) for taxable gross receipts between $0 and $1,000,000 0.144% (e.g., $1.44 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000 0.259% (e.g., $2.59 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000 0.665% (e.g., $6.65 per $1,000) for taxable gross receipts over $25,000,000 (3) For the business activities of transportation and warehousing and clean technology for tax years 2021 through and including 2024: 0.175% (e.g., $1.75 per $1,000) for taxable gross receipts between $0 and $1,000,000 0.287% (e.g., $2.87 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000 0.518% (e.g., $5.18 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000 0.665% (e.g., $6.65 per $1,000) for taxable gross receipts over $25,000,000 (4) For the business activity of biotechnology: (A) For tax year 2021: 0.175% (e.g., $1.75 per $1,000) for taxable gross receipts between $0 and $1,000,000 0.287% (e.g., $2.87 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000 0.518% (e.g., $5.18 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000 0.665% (e.g., $6.65 per $1,000) for taxable gross receipts over $25,000,000 (B) For tax years 2022 and 2023: 0.181% (e.g., $1.81 per $1,000) for taxable gross receipts between $0 and $1,000,000 0.297% (e.g., $2.97 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000 0.537% (e.g., $5.37 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000 0.689% (e.g., $6.89 per $1,000) for taxable gross receipts over $25,000,000 (C) For tax year 2024: 0.188% (e.g., $1.88 per $1,000) for taxable gross receipts between $0 and $1,000,000 0.308% (e.g., $3.08 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000 0.555% (e.g., $5.55 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000 0.713% (e.g., $7.13 per $1,000) for taxable gross receipts over $25,000,000 (5) For the business activity of information: (A) For tax year 2021: 0.56% (e.g., $5.60 per $1,000) for taxable gross receipts between $0 and $1,000,000 0.644% (e.g., $6.44 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000

0.714% (e.g., $7.14 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000 0.784% (e.g., $7.84 per $1,000) for taxable gross receipts over $25,000,000 (B) For tax years 2022 and 2023: 0.573% (e.g., $5.73 per $1,000) for taxable gross receipts between $0 and $1,000,000 0.665% (e.g., $6.65 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000 0.751% (e.g., $7.51 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000 0.832% (e.g., $8.32 per $1,000) for taxable gross receipts over $25,000,000 (C) For tax year 2024: 0.579% (e.g., $5.79 per $1,000) for taxable gross receipts between $0 and $1,000,000 0.675% (e.g., $6.75 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000 0.77% (e.g., $7.70 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000 0.855% (e.g., $8.55 per $1,000) for taxable gross receipts over $25,000,000 (b) Manufacturing includes the activity of transforming materials, substances or components into new products by mechanical, physical or chemical means; it includes the activity of assembling component parts of manufactured products; it includes business activity described in NAICS codes 31, 32 and 33. (c) Transportation and warehousing includes the activities of providing transportation of passengers and/or goods, warehousing and storage for goods, scenic and sightseeing transportation, and support activities related to modes of transportation; it includes business activity described in NAICS codes 48 and 49. (d) Information includes producing and distributing information or cultural products; providing the means to transmit or distribute those products; and processing data; it includes business activity described in NAICS code 51. (e) For purposes of this Article 12-A-1: (1) Biotechnology includes the activity of conducting biotechnology research and experimental development, and operating laboratories for biotechnology research and experimental development, using DNA, cells, and/or bioprocessing techniques, as well as the application thereof to the development of therapeutics, diagnostic products and/or devices to improve human health, animal health, and agriculture. For purposes of this Section 953.2(e)(1): (A) “DNA” is a nucleic acid sequence, or fragment thereof, that contains the genetic information for cell growth, division, and function. Examples of DNA include recombinant DNA, RNA, mRNA, antisense, RNAi, genes and ESTs. (B) “Cells” are membrane bound structures containing biomolecules, such as nucleic acids, proteins, and polysaccharides. This definition includes both prokaryotic (bacterial) and eukaryotic (animal or plant) cells. Examples include primary cells, transformed or cultured cells, stem cells, iPS, ESCs, fused cells and cell lines. (C) “Bioprocessing” is the use of microbial, plant, or animal cells or portions thereof, for the production of therapeutics or diagnostics. Bioprocessing includes the extraction of compounds from biomaterials; reaction of biomaterials, such as microbial fermentation, cell culture, cell fusion or biotransformation by enzymes; and separation of product from biomaterials using filtration, purification, precipitation, centrifugation, solvents, chromatography or other means. (2) Clean technology includes the activity of a business, as defined in Section 6.2-5 of Article 6 of the Business and Tax Regulations Code, in which at least 75% of all business activities carried on during the tax year are directly related to one or more of the following activities: (A) Research and development and/or associated manufacturing applying scientific advances to the production, distribution or storage of clean energy. (B) Research and development and/or associated manufacturing applying scientific advances to prototype or commercially viable materials and products powered by clean energy, including but not limited to single passenger vehicles and fueling infrastructure. (C) Research and development and/or associated manufacturing applying scientific advances to prototype or commercially viable techniques, materials and products that materially improve energy efficiency, water conservation or air quality. (D) Research and development, manufacture and/or installation of solar panels. (3) For purposes of Section 953.2(e)(2), “clean energy” means energy utilizing energy produced by wind, solar energy, landfill gas, geothermal resources, ocean thermal energy conversion, quantifiable energy conservation measures, tidal energy, wave energy, biomass, biofuels, or hydrogen fuels derived from renewable sources, excluding: (A) any fossil fuel based energy production, including but not limited to, clean coal, clean diesel, natural gas and hydrogen from natural gas; (B) any nuclear based energy production; (C) waste to energy via combustion or incineration; or/and

(D) other technologies that are detrimental to human health. (f) Food services includes the activity of preparing meals, snacks and/or beverages to customer order for immediate on-premises or off-premises consumption; it includes drinking places; it includes business activity described in NAICS code 722. (g) The amount of gross receipts from all business activities described in this Section subject to the gross receipts tax shall be one-half of the amount determined under Section 956.1 plus one-half of the amount determined under Section 956.2. (Added by Proposition E, App. 11/6/2012, Oper. 1/1/2014; amended by Proposition F, 11/3/2020, Eff. 12/29/2020, Oper. 1/1/2021; Ord. 152-21, File No. 210828, App. 9/29/2021, Eff. 10/30/2021; Ord. 151-23, File No. 230155, App. 7/28/2023, Eff. 8/28/2023, Retro. 1/1/2023; Proposition M, 11/5/2024, Eff. 12/20/2024)