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| Comparison of Annual Business Taxes for Office Users by Economic Sector |
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| Typical Business Taxes for Legal Services Firm Occupying 10,000 Sq. Ft. |
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Annual Payroll Tax |
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Annual Business Receipts Tax |
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Annual Business License Fee |
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Total Annual Business Tax |
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Business Tax Per Sq. Ft. |
| San Francisco |
$51,600 |
$0 |
$500 |
$52,100 |
$5.21 |
| Oakland |
$0 |
$11,664 |
$0 |
$11,664 |
$1.17 |
| Pleasanton |
$0 |
$1,944 |
$0 |
$1,944 |
$0.19 |
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| Typical Business Taxes for Information Services Firm Occupying 10,000 Sq. Ft. |
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Annual Payroll Tax |
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Annual Business Receipts Tax |
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Annual Business License Fee |
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Total Annual Business Tax |
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Business Tax Per Sq. Ft. |
| San Francisco |
$86,250 |
$0 |
$500 |
$86,750 |
$8.68 |
| Oakland |
$0 |
$9,591 |
$0 |
$9,591 |
$0.96 |
| Pleasanton |
$0 |
$5,295 |
$0 |
$5,295 |
$0.53 |
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| Typical Business Taxes for Financial Services Firm Occupying 10,000 Sq. Ft. |
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Annual Payroll Tax |
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Annual Business Receipts Tax |
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Annual Business License Fee |
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Total Annual Business Tax |
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Business Tax Per Sq. Ft. |
| San Francisco |
$64,500 |
$0 |
$500 |
$65,000 |
$6.50 |
| Oakland |
$0 |
$18,090 |
$0 |
$18,090 |
$1.81 |
| Pleasanton |
$0 |
$3,015 |
$0 |
$3,015 |
$0.30 |
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| Typical Business Taxes for Administrative Headquarters Firm Occupying 100,000 Sq. Ft. |
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Annual Payroll Tax |
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Annual Business Receipts Tax |
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Annual Business License Fee |
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Total Annual Business Tax |
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Business Tax Per Sq. Ft. |
| San Francisco |
$750,000 |
$0 |
$500 |
$750,500 |
$7.51 |
| Oakland |
$60,000 |
$0 |
$0 |
$60,000 |
$0.60 |
| Pleasanton |
$30,000 |
$0 |
$0 |
$30,000 |
$0.30 |
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Notes:
San Francisco charges a payroll tax of 1.5 percent of total payroll for all industries with exemptions for biotechnology and clean technology.
Oakland charges a tax of $1.8 per $1,000 of gross receipts for business / professional services and a tax of $1.2 per $1,000 of gross receipts for software firms. Oakland also uses an abatement schedule for targeted industries including software such that the average tax rate during the first ten years is $0.55 per $1,000 of gross receipts. This "abatement rate" is used above. Also, Oakland caps the maximum annual business receipts tax for targeted industries at $150,000 per year. Targeted industries are Food processing; Telecommunications; Transportation; Bioscience/biotechnology; and Software/multimedia.
For Administrative headquarters Oakland charges a buisness tax based on gross payroll rather than gross receipts. An andministrative headquarters is definded as "a location where the principal business transacted consists of providing administrative or management related services such as, but not limited to, recordkeeping, data processing, research, advertising, public relations, personnel administration, legal and corporate headquarters services, to other locations where the operations of the same business are conducted which lead more directly to the production of gross receipts." (Municipal Code Chapter 5.4.400). Rate is $1.2 per $1,000 of gross payroll for all gross payroll above $50,000 per year.
Pleasanton charges a tax of $0.3 per $1,000 of gross receipts for all businesses with annual gross receipts greater than $250,000.
Sources: Cities of San Francisco, Oakland, and Pleasanton, 2007; BAE, 2007. |
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