San Francisco Considers Dropping Stock Option Tax
SAN FRANCISCO (KCBS) – San Francisco would no longer tax stock options under a proposal introduced Tuesday at the Board of Supervisors meeting. The legislation was introduced just moments after the board gave final approval to tax breaks for Twitter if the company moves to Mid-Market.
KCBS' Barbara Taylor Reports:
The weekly meeting began with a vote to keep Twitter in San Francisco. The social network company won't have to pay higher payroll taxes if it moves to Mid-Market and increases its workforce.
However, Supervisor Mark Farrell said the city must also eliminate the payroll tax on stock options, adding that no other city in the country does so.
"If we don't correct the issue, companies, and more importantly the jobs they provide San Franciscans, and the taxes that they pour into our city, will leave," said Farrell.
Farrell said that his legislation would revive the local economy.
"Twitter estimated that their first year tax burden would be over $50 million," said Farrell. "This is really real, and really serious to our technology community."
Mayor Ed Lee held his first technology council meeting on Monday, and he said the message he got from tech companies was clear, the city should get rid of the tax if they want tech to stick around.
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