Central Market/Tenderloin Payroll Expense Tax Exclusion
About the Credit: The Central Market/Tenderloin Payroll Expense Tax Exclusion (CMTPETE) exempts businesses located within the defined exclusion area from additional payroll tax as they add jobs during any six years in an eight-year period.
Office Market Within the Exclusion Area:
•3.3 million square feet contained within 73 office buildings
•Select large buildings included in the area: 1355 Market, 1 Tenth, 25 Taylor, 1035 Market, 995 Market, 979-989 Market, 982-998 Market (Warfield)
•Large buildings excluded from the area include: 1455 Market, 1275 Market, 1145 & 1155 Market, 10 UN Plaza
•Click here to see a map of the Payroll Tax Exclusion Area (pdf)
Central Market Payroll Tax Exclusion:
•The effective date of the Central Market/Tenderloin Payroll Tax Exclusion is April 20, 2011 and is available for a period of 8 years. Individual businesses may claim the exclusion for a maximium of 6 years.
•Any business subject to payroll tax and located within the Central Market/Tenderloin Payroll Expense Tax Exclusion Area (Click here for a pdf of the map) is eligible
•Payroll tax exclusion is limited to that amount above the business' tax "Base Year." Base Year means:
•For businesses already located in the tax exclusion area on the effective date, the Base Year is 2010.
•For businesses located elsewhere in San Francisco that move into the tax exclusion area after the effective date, the Base Year is the full tax year for the year prior to entering into a lease agreement or buying real property in the area.
•For businesses located outside of San Francisco that subsequently relocate to the tax exclusion area, the Base Year is their first full tax year in the area.
•Any business with payroll expenses over $1 million must negotiate a community benefits agreement with the City in order to claim the payroll expense tax exclusion.
The transition to a Gross Receipts Tax:
Businesses that qualify for the Central Market Street and Tenderloin Area Payroll Expense Tax Exclusion (CMTPETE) in a given tax year will not pay more in combined gross receipts and payroll expense tax attributable to their location in the CMTPETE than their Base Year (as defined in section 906.3(b)(2)) payroll expense for that location multiplied by 1.5%. All gross receipts and payroll expense tax attributable to locations outside of the CMTPETE area are unaffected.
•Please click here to download the application package (2014 Tax Year Application COMING SOON!)
•Contact us at 415-554-6969 or email@example.com