Challenge filed to invalidate S.F.'s Prop C homelessness measure
Published by Ted Andersen, San Francisco Business Times on Apr 15, 2019
Prop. C imposes an average of 0.5 percent in gross receipts tax on corporate revenue above $50 million, which would include between 300 and 400 of the city’s largest players. The measure passed in November with about 61 percent of the vote.
The new legal challenge hinges on how a special tax can be levied, and until the courts decide whether the city passed the measures legally, which could take years, all of the money will be held in reserve, but none of it will be spent.
The California Business Roundtable, the California Business Properties Association and the Howard Jarvis Taxpayers Association have together filed court documents arguing that the passage of Prop. C violated the state Constitution because it only passed with a simple majority vote, the San Francisco Chronicle reported.