On March 11, 2020, the City of San Francisco announced measures to support small businesses in light of the COVID-19 outbreak. The City’s support efforts include the deferral of business taxes and licensing fees, as well as the launch of an economic relief fund.

Deferral of Quarterly Business Taxes Due April 30, 2020

Quarterly estimated tax payments of the Gross Receipts Tax, Payroll Expense Tax, Commercial Rents Tax, and Homelessness Gross Receipts Tax otherwise due on April 30, 2020 are deferred for taxpayers with San Francisco gross receipts of $10 million or less (measured using calendar year 2019 gross receipts). These quarterly estimated tax liabilities may be paid in February 2021 without interest or penalties.

Businesses below the gross receipts threshold for 2019 can expect a letter in lieu of the quarterly estimated tax payment bill typically mailed in late March.

Deferral of Business Licensing Fees Due March 31, 2020

Payment on annual business license and permit fees due to the Department of Public Health, Fire Department, Police Department, Entertainment Commission, and the Office of Cannabis is extended from March 31, 2020 to June 30, 2020. The City may consider a further deferral on collection as the situation develops.

Businesses may have already received bills for business license and permit fees with the March 31, 2020 deadline. The Office of the Treasurer & Tax Collector announced that it will not re-issue the bills but will send an email and letter confirming the extended due date.

Business Grants for Immediate Relief

The City plans on establishing a fund to provide immediate relief for small businesses negatively impacted by COVID-19. With an initial investment of $1 million, the COVID-19 Small Business Resiliency Fund will provide grants of $10,000 each to up to 100 businesses. Eligible San Francisco businesses with less than $2.5 million in gross receipts must demonstrate a loss of revenue of at least 25% and employ at least one but no more than five workers.

For further information on San Francisco’s support measures for businesses affected by COVID-19, please contact Christopher Karachale or Nancy Dollar.