San Francisco reallocates $16M in business tax revenue to shelter beds
San Francisco supervisors approved an ordinance Tuesday that will reallocate over $16 million in a city business tax towards shelter and homelessness prevention services.
As part of the yearly budget also passed by supervisors on Tuesday's board meeting, this ordinance will ensure revenues made from 2018's Proposition C Homeless Gross Receipts Tax will temporarily shift from affordable housing for transitional aged youth and families to homelessness prevention efforts.
The tax, first approved by voters in 2018, added an additional .0175 to .69 percent to gross receipts tax on businesses earning over $50 million to help the city provide resources to unhoused people.
Funds previously were deposited in the Our City, Our Home Fund, with at least 50 percent going towards permanent housing — 20 percent for homeless youth and 25 percent for homeless families — 10 percent towards shelters and hygiene programs, 15 percent for homelessness prevention and 25 percent towards mental health services.
The city was previously unable to use funds from the business tax due to a "legal challenge" that went well into 2020 until the California Supreme Court ruled in the city's favor, reads the ordinance.
"Given the current state of the homelessness crisis, it is necessary to reallocate funds to where they are most needed," reads the ordinance.
The reallocation comes as a larger spending plan from Mayor London Breed to combat homelessness, according to the ordinance.
The budget move was previously opposed by a multitude of community organizations because it could diminish resources for youth and families facing homelessness. The committee that overlooks the tax's revenue spending approved a motion in June to request the Mayor's Office to find other ways to fund these services.
Restaurant and businessowners voiced support for the reallocation, with many saying that more shelter beds available will boost public safety and help the city's efforts to revitalize the downtown district.
