SF food and drink establishments will no longer have to pay licensing fees for outdoor seating and a host of other add-ons under newly passed legislation, though the breaks don’t kick in until 2026.

This November’s local business tax measure Prop M was so broadly supported that at a late October rally, all five mayoral candidates showed up to support it. Prop M restructured the tax code so that small businesses would not have to pay gross receipts taxes unless they pulled in more than $5 million a year in revenue (compared to the previous, lower threshold of $2.25 million a year). The difference would be made up by tax increases on biotech, financial services, and utility companies, and voters liked the idea so much that Prop M passed by a 70%-30% margin.

Then on Tuesday, the SF Board of Supervisors bolstered the small business cost reductions even more. The supervisors unanimously approved eliminating licensing fees for bars and restaurants, which KPIX reports would get rid of the annual feels for 91% of SF restaurants and 87% of the city’s bars and nightclubs.

“To help small businesses, we’ve cut red tape, we’ve cut taxes, we’ve improved public safety, and now we are cutting more fees,” Mayor London Breed said in a statement. “The transformation we’ve made in helping small businesses to open and operate started with Prop H in 2020, which cut months off permitting and approval times, and continues today with the elimination of these costly fees. San Francisco is supporting small businesses like never before, and we must continue to build on this progress.”

The move is estimated to waive nearly 50 annual fees that SF charges small businesses, with approximately $10 million in savings for these businesses each year. It eliminates fees on outdoor seating or extended hours, and even the really ticky-tack fees like an annual fee on having a cash register or having lit candles.

A sensible as the move sounds, though, KRON4 points out that the fees won’t be eliminated until January 1, 2026, which is when Prop M takes effect.

Related: Mourad Owner's Dispute With City Reportedly Had to Do With Unpaid Tax Bill [SFist]

Image: Joe Kukura, SFist