Board Approves Tax Exemption For Twitter, Other Mid-Market Businesses

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The San Francisco Board of Supervisors today approved a proposal to exempt Twitter and other businesses who move to certain locations in the city's Mid-Market and Tenderloin neighborhoods.

The legislation, passed by an 8-3 vote, will exempt payroll taxes for new employees for companies that move to the area on or near Market Street between Fifth Street and Van Ness Avenue.

Twitter, the microblogging company currently based in the city's South of Market neighborhood, is seeking a building with more office space and has considered moving down the Peninsula to a city that has no payroll tax.

San Francisco's payroll tax, the only one of its kind in the state, levies the tax on any company with a payroll above $250,000.

Supervisor Jane Kim, one of the sponsors of the legislation passed today, said it will "revitalize a long-neglected part of the city."

John Avalos, Ross Mirkarimi and David Campos were the three supervisors who voted against the legislation.

The opposing supervisors argued it sets a precedent that will lead to many more companies asking for tax exemptions and could take businesses away from other areas of the city.

Twitter said in a letter to city officials last month that if the board approved the exemption, the company pledged to sign a six-year lease at the San Francisco Mart building on the south side of Market Street between Ninth and 10th streets.

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