San Francisco's office of the Treasurer and Tax Collector has released its reports on the impact the so-called "Twitter tax break" has had on the city as of 2013. An incentive for companies to move to the, shall we say, challenging Mid-Market area, the six-year-long program offers a baseline tax level for all businesses located in the area. All payroll or compensation costs that the area's businesses incur beyond that baseline are tax free. Let's take a look at where we stand with the program, by the numbers:
- $1.9 million: The amount of tax revenue the city gave up due to the tax break in 2011 and 2012, combined
- $4.2 million: The amount of tax money the city gave up in 2013
- 11: The number of companies that are would (together) have paid that $4.2 million, were it not for the tax break
- $22 million: The amount of money San Francisco estimated, in 2011, that the city would lose in taxes from Twitter alone for the duration of the program (not including tax on stock options)
- $56 million: The amount a Chronicle analysis projected the city would lose in taxes from Twitter, with stock option taxes added in.
- 0: The amount of tax money San Francisco would be collecting from Twitter if the micro-blogging company had acted on its threat to move out of San Francisco
- "Periodic": The frequency with which one will hear the "shouts of the mentally ill" in the tax break area
- $8.4 million: The increase in property tax and real estate transfer tax the city has collected in the area since 2011
- $54 million: The net increase in long-term business tax revenue San Francisco chief economist Ted Egan says SF will see over 20 years due to the tax break.
Data and context: $4.2 million in taxes forgone last year under Mid-Market deal, SF Chronicle June 24, 2014
Read the SF Treasurer and Tax Collector reports:
2013 Payroll Expense Tax Exclusion Clean Technology Business
2013 Payroll Expense Tax Exclusion Biotechnology
2013 Payroll Expense Tax Credit - Enterprise Zone
2013 Payroll Expense Tax Exclusion - Central Market Street & Tenderloin Area
2013 Payroll Expense Tax Exclusion Stock-Based Compensation
2013 Payroll Expense Tax Exclusion Net New Payroll
2013 Payroll Expense Tax Exclusion - Surplus Business Revenue