SF city workers urge business tax reform

(KTSF by Sean Au)

More than a hundred union workers held a rally near San Francisco’s City Hall today . They were asking the City to increase revenue through reforming the business payroll tax instead of proposing more cutting costs by proposing more furlough days to city workers .

The current contract between union workers and the City expires in July. A new contract is being negotiated between the Labor Relations Department and SEIU which represents about 70% of city workers . Union representatives say they have been asked to accept seven furlough days in a year which they say is equal to a 2% pay cut. They are also expected to pay more into their health insurance and pensions.

Union representatives say it is time to look at the other options of increasing revenue from businesses. They claim that among the City’s 80,000 registered businesses, only 10% pay the payroll tax. They also claim that Assessor-Recorder’s Office has not been given adequate resources to investigate and collect taxes companies should pay when commercial properties change hands.

The San Francisco Chamber of Commerce did not respond to today’s events. Staff from Mayor Ed Lee’s Office indicates that the mayor is currently in talks with the Board of Supervisors President David Chiu to discuss how to amend the City’s business tax code. A proposal is likely next month.

(Copyright 2012 KTSF. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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