San Francisco voters will choose between two competing business tax measures on June 2, with Proposition D and Proposition C offering opposing approaches to the city’s tax structure and budget outlook.
Proposition D, titled the “Overpaid CEO Salary Tax,” would modify the existing Top Executive Pay Tax by calculating the applicable rate against the median income of all company employees nationwide, rather than only those based in San Francisco. It would also add gross receipts taxes and administrative taxes on businesses subject to the Top Executive Pay Tax. City Controller Greg Wagner estimates Prop D could generate up to $300 million in annual revenue if passed.
Supporters include labor unions, small business owners, and several Board of Supervisors members, including Bilal Mahmood and Chyanne Chen. They argue the measure targets large corporations rather than small businesses or working families and would help close the city’s budget gap without cuts to services.
Opponents include Mayor Daniel Lurie, the San Francisco Chamber of Commerce, supervisors Matt Dorsey and Stephen Sherrill, and a number of large corporations. They argue the tax increases would push employers out of San Francisco and threaten jobs at a time when the city is working to bring workers and economic activity back downtown.
Proposition C takes the opposite approach. It would raise the Gross Receipts Tax exemption threshold from $5 million to $7.5 million in gross receipts, reducing the tax burden on small and medium-sized businesses. It would also accelerate the existing Top Executive Pay Tax rate increase, applying the scheduled 2028 rate in 2027 instead. Wagner estimates Prop C would reduce city revenue by $30 to $40 million annually.
Backers say Prop C would ease financial pressure on neighborhood businesses and help employers retain workers. Critics argue it was introduced to undermine Prop D and would deliver tax relief to large corporations rather than small businesses.
Because the measures compete directly, if both pass, the one with more votes takes effect.
The “Yes on C, No on D” campaign has raised approximately $4.3 million, with major contributions from venture capitalist Michael Moritz at $625,000 and cryptocurrency billionaire Chris Larsen at $700,000. Corporate backers opposing Prop D include Visa, Uber, PG&E, Google, Amazon, Gap, and DoorDash.
Mail ballots have already been sent. The city has 37 drop-off boxes available around the clock until 8 p.m. on Election Day.
