Proposition L | californiachoices.org

My vote

The City collects taxes on gross receipts from many businesses in San Francisco at a rate of 0.053% - 1.008% and a per-ride tax on certain transportation businesses at a rate of 1.5% - 3.25%. Proposition L would create an additional tax on transportation network companies and autonomous vehicle businesses ranging from 1% to 4.5% on taxable gross receipts depending on gross receipt amounts. These funds would be used to maintain and increase Muni public transportation services and expand discount fare or fare-free programs by Muni for people with disabilities, seniors, youth, students and low-income passengers. Proposition L is an ordinance that requires 50%+1 affirmative votes to pass.

Fiscal Impact: Proposition L would result in additional revenue of approximately $25 million annually, based on the historical performance of the existing Traffic Congestion Mitigation Tax (TCMT). This new tax would take effect in tax year 2025.

Next San Francisco County Measure: Measure M

See Endorsements for Proposition L

Details

Pro/Con

Pro:

Supporters argue that muni is facing severe cuts due to the end of emergency federal funding, which kept our transit running through the pandemic. These cuts will mean reduced Muni hours and frequency, and likely whole lines eliminated. Prop L will provide enough critical funding to protect up to a dozen bus lines from getting cut.

Right now, San Francisco taxes ride-hail and robotaxi companies at a lower rate than other big cities. And if Prop L passes, SF ride-hail taxes will still be lower than those in NYC, D.C., and Chicago. This is a small, common-sense tax on these companies to help keep Muni running and accessible for all.

A YES vote on this measure means: you want to create a new gross receipts tax on transportation network companies and autonomous vehicle businesses that provide passenger service for compensation and use the funds the City collects from the tax to support Muni transportation services and fare discount programs.

YesOnL.com (Campaign Website)

Con:

Opponents argue that Proposition L increases San Francisco’s cost of living without addressing the roots of Muni’s problems. We can’t continue to spend money without real accountability. This tax raises only a tiny fraction of the funding Muni needs to cover its whopping $214 million debt, with no plan to spend it. San Franciscians deserve well-funded, well-managed public transportation that meets the needs of all residents.

A NO vote on this measure means: you do not want to make these changes.

In Depth

The City collects taxes on gross receipts from many businesses in San Francisco at a rate of 0.053% - 1.008% and a per-ride tax on certain transportation businesses at a rate of 1.5% - 3.25%. In addition to existing taxes, Proposition L would create a new gross receipts tax on transportation network companies and autonomous vehicle businesses. This new tax would be on passenger transportation service gross receipts in San Francisco above $500,000. The tax rates would be:

1% on taxable gross receipts between $500,000.01 and $1,000,000 (one million dollars);
2.5% on taxable gross receipts between $1,000,000.01 and $2,500,000 (two-and-a-half million dollars);
3.5% on taxable gross receipts between $2,500,000.01 and $25,000,000 (twenty-five million dollars); and
4.5% on taxable gross receipts over $25,000,000 (twenty-five million dollars).

The City would use the funds it collects from the new tax to:

Preserve, maintain or increase Muni public transportation services;
Improve or preserve Muni service to public schools, libraries and parks by increasing service frequency, expanding and adding new routes; and
Maintain or expand discount fare or fare-free programs by Muni for people with disabilities, seniors, youth, students and low-income passengers.

The tax would remain in place unless the voters repeal it through a future ballot measure. The Board of Supervisors would have authority to amend the tax by a two-thirds vote, so long as it does not undermine the intent of the tax.

If Proposition M [Changes to Business Taxes] passes with more votes than Proposition L [this measure], then Proposition L [this measure] would have no legal effect.

If Proposition L [this measure] passes with more votes than Propositon M [Changes to Business Taxes], both propositions would have legal effect.

Source: Final Digest - Additional Business Tax on Transportation

Voter Resources

City and County of San Francisco Office of Elections