135,068 / 45.33% Yes votes ...... 162,910 / 54.67% No votes

See Also: Index of all Measures

THE PROPOSAL: Proposition K is an ordinance that would create a temporary four-year "gross receipts" tax on certain companies and individuals doing business in the City. "Gross receipts" means the total amount of money a business takes in for certain goods and services. The gross receipts tax would only apply to money received for goods and services sold in the City. Certain small businesses would be exempt from this tax.

o In 2005, the City would collect 0.1% (one-tenth-of-one percent) of gross receipts from companies and individuals doing business in the City.

o The City would reduce this rate for 2006, 2007 and 2008 if gross receipts tax funds collected in 2005 exceed $30 million.

o The gross receipts tax will expire on December 31, 2008. The gross receipts tax funds could be used by the City for any public purpose.

The gross receipts tax would apply in addition to the payroll expense tax.

Proposition K would also clarify how the payroll expense tax applies to certain businesses, including partnerships, limited liability partnerships, and limited liability companies.

Meaning of Voting Yes/No

A YES vote of this measure means:

If you vote "yes," you want to clarify how the City's existing payroll expense tax applies to certain businesses, and you want to create a temporary four-year 0.1% (one tenth of one percent) gross receipts tax on companies and individuals doing business in the City.

A NO vote of this measure means:

If you vote "no," you do not want to make these changes.

• Official WWW Site

League of Women Voters

• Pros & Cons of Measures - a PDF file analyzing all measures on the San Francisco county ballot. Also available in Chinese and in Spanish