couple years ago and making sure that concept persists. but what we shed i want to make sure everyone is aware of if there's not a specific exemption or exclusion the taxpayer should smoum that's included in the receipt 0 if the taxpayer wishes to include it. there are certainly exempt entities small businesses with a less than a million dollars in engross receipts are exempted and this is similar to the small business tax under a certain outing amount you're not significant to the tax. and certain tablths organizations like those

businesses that are locally known as nonprofits etc. they are exempted from the gross receipt tax to the extent they don't have related business income if the irs treats it as something that's exempted. and then there are unconstitutional legally organizations those are essentially folks under state law we can't tax because the state law prevents them like banks and insurance companies and there are also businesses that are regulated by the public utilities commissions and those are specific exemptions in the law we can't tax them because they have stated exemptions.

i mentioned related entities and annoyed returns so if there recent a taxpayer that is required or permitted by the franchise tax broadway broadway board their locally to five a local return for their tax. this is a state concept that's been implemented so the businesses all report together. and this is a concept where the businesses if not the owners certain their tax perpers will know this ate that's a small percentage of the taxpayers we've gotten the information they estimated on the order of 5

hundred to a thousand businesses fail into this category. we won't know until the people make their filings. so there are 8 different categories of gross receipts and those range from retail to with wholesale trade to you administrative areas this is specifically defined by the north industry n aic s. for each of those business activities there are defined by the consensus bureau and that's the tool it that you are to report your taxes under. those rates vary they're from .075 percent for the first

million dollars all the way up to have 6.5 percent for the receipts in private education and the administrative and support services. those receipts over $25 million. so it's a wide range but it really is defined by what business activity you're in. and then what businesses will do they have to actually report out their waters edge business engross receipt to our office and they portion or allocate your receipts by real tangible property or that you apportion your receipts bans our payroll extension divided by your total

payroll receipts and a portion of san francisco. and the third method if you're in maximizations or real estate you only have a san francisco receipts those receipts that are related to or derived from property in san francisco if you own property in 70 and oakland i repeat our san francisco receipts and don't have to report our property in oakland that's specifically for real estate. and for many of these business categories you're either going to have an proirpgs or a 50/50 portion where half your receipts will be allocated based on where

your receipts are and the tangible property and half based on your payroll expense. take your total amount for your sales and receipts accrue then half is based upon our payroll expenses. there is going to be a 5 year phase in of this tax. we recognized and the board of supervisors when we drafted this to recognize this was a big change. they didn't know and there's no one anyone can know heading into this if you picked a certain rate what amount of revenue this is going to generate for the city. so the southerners for the businesses communicate their concerned that the biz businesses in san francisco are

getting taxation's too much. the city picked a rate that was too low we won't collect enough forbid the taxing tax and we will end up with a deficit. in order to alleviate those concerns for the first year it's interpret percent of what was approved by voter. you recall i mentioned .075 percent for on the first million in retail sales it's .00575 for the first million dollars that translates into a tax of '$75 to give you a sense of how much it is for the first retail. at the same time the payroll tax

is being cut. after we go through the collection period and we have all taxpayers file next february for this tax year the controler will look at the engross receipts tax and the law has an evaluation. so instead of the 25 percent it you might not 26 percent or 24 percent but it will be adjusted so we're tennessee adjusting this tax so it will not gather more than we asked for or less. so the anticipation is that this will completely phase out the expense payroll tax by the 5th

year and we'll have a tax receipt rates that's lower than what the taxpayers voted on. we'll fully phase in the tax rate but that won't generate enough so there will be a small payroll tax but the city will continue to collect harassing as much revenue as they've anticipated. the registration fees for this fiscal year which means they get collected this may from the fiscal year july 1, 2014, to 15 they will continue to be based on payroll expense so the maximum registration fee over

$35,000. this is a big change pea something you really need as you're out in the community i suggest you tell everyone at every stunt i do. up to this year businesses were paying 25 bays dollars as a registration fee and maximum $500. this is a big, big changed this is going to conspiracy a lot of businesses. as you know when you subcontract with our office you get a notice to log both our website so you put in how much payroll tax and hit energy and for the last how many years it's been $150 or more so that's what you've been seeing now you're going to

energy your information and i'll see $800 and wonder. we want to get the word out enough so the business didn't pick up the phone and ask for clarification. this is a big change and will effect every single one hundred thousand businesses in san francisco. the other thing a that's good evening to be happening this change happens for one year and in may 2015 there will be a different reckons fee it's 90 dollars and will be based on our enclose recipes. weeping we'll have the gross receipts tax in place. the good news is when businesses file they'll be able to when

they come back to pay their registration foe they'll - we'll be able to pull that forward and is you reported $500 so we'll be able to pull that information forward. implicit its not it's so much higher it's based on something different and so again, we want to make sure that businesses are aware of that so when they get the invoice they're not saying to themselves oh, someone did something wrong this is how the law has changed. if you're whole i didn't in retail or wholesale you have a slightly different fee it's smaller.

if a business has billion dollars and you have one hundred thousand employees this is - you're going to be paying between 15 and $35,000. it's only effecting the larger businesses between 15 and 25 businesses but they're going to be paying a different registration fee but most are 90 up to $35,000. for the timeline the payroll tax expense file for the filing is due at the end of the february. 2 will look the same we are closing anti that fireman year and tax so the same process will apply. the first time the businesses are seeing something different

with the april snauchlt both their payroll and gross expense tax businesses will again have to allocate themselves in the system. you might recall if you've done your statute of limitation payment we're incurring the new regime of gross receipts that certainly can be seasonal and certainly there were concerns from businesses based on last year didn't reflect where you're at today and businesses will enter our system and they'll remit those if you happened for the last quarter you'll do that by april 30th.

the rentals fees are due in may and the first maxillofor both the payroll and the gross receipts tax will be february of 2015 that's where businesses will be providing the payroll tax. we'll calculate the tax based on the information they provide and we'll credit those previous installment payments and create a balance or a refund if they've overpaid. and that will be the process it will continue throughout 9015 based on the receipt and 2016 we will be fully converted.

i know i've priority a ton of information. and it's there's a lot of questions and everything. i want to make sure i mentioned and maybe gloria will talk about the outreach we're doing monthly seminaries the first thursday of every month starting this february 6 february 6th at 2 o'clock in the average after that. we'll be providing tax information so you can come in and get more information about the tax and a great i do know you've been contacting several organizations in the city and having meetings with them. i can't thank you enough for that. i know it's not been easy but the reality of it so i know i

entices are talking to organizations right now. so i appreciate that. >> all right. mary ann is going to provide you with information on the overview of the marketing and marketing and outreach and education plan. that both she and gloria caan have been working with the tax and treasurers office with greg providing all the great workshops he's been doing >> he's been out there, too. >> this presentation is it available on - >> greg is your power point available on line yet connected to your website?

>> it's not on our website at the moment but i know there was a link on your agenda today so where folks can go as well. >> good afternoon, commissioners. commissioner president adams director dick. thank you for allowing us to be here today. i hope we actually get some good feedback from you. so this is just a quick overview and again a lot of this is presented and beginning in 2014 we've started out outreach to businesses small language those businesses that are small and

not english proficient. we've been out there. so a couple of things our outreach plan targeting the internal and external resources. we've have our only website sf workshop organizing and we do monthly workshops that was touched on. the community presentations to merchant and merchant groups. i had the pleasure of presenting to fillmore. media outreach and social media 311, city department and other materials. i want to speak quickly to city reach. we've had a great collaboration with a lot of city departments that have agreed to help us get

our information out whether e-mail or facebook or twitter. they have really a lot of departments like the office of labor standards, the kroerlz office have helped us to get information to businesses in a timely fashion. one of the things you'll notice about this plan it's heavily front load. we want to reach businesses ahead of the business registration dropping. our primary stakeholders are the mayor's office and this board of supervisors, the city agencies and small businesses the chamber of commerce, trade and advocate association and economic organization and neighborhood

merchant groups and multiple community based organizations. i want to emphasize something when we reached out to individual they want to be helpful. this has been a collaborative project. so what are rae saying when we get out there. the taxes are changing in 9014 and the best thing to do is get educated and how they're going to change and consult a professional. under prop e it was approved by voters and the larger majority of businesses will not be impacted by the gross receipt taxes. you'll business tax in proportion e my may go on go

down in some cases and up in other. this is our timeline. i want to emphasize extremely heavily front loaded. in your packet you have the business 1, 2, 3, 4 flier it will drop at the end of the january and brown will go to the 95 thousand businesses in san francisco. this is not the first time they're to hear about the tax changes. it will make you think what you need to do to get rode. we have our social media campaign chamber of commerce and trade and advocate organization. there is a 15 piece piece it is

dropping and again, this is the final wrap up for the 2013 taxes. in february we'll launch a campaign on muni. i couldn't put this in your packet we have 5 hundred of this in the buses we have coincidence and teens and quails. we believe this is a good way to reach some of the smaller businesses and those who are traveling to san francisco to understand their business tax is changing. we really, really want to get ahead of the registration fee. in march i did not mean to step over february there is the library presentation which is february 6th at 2 o'clock in the main library. we partnered with the champ open

this one and asked for rfp because it's in the latino room it only holds 90 1ri8dz that dropped on friday and by the time i left the office we have a smaller amount that if you want to come please. in march you'll see the library presentation a door to door outreach. a lot of the staff as they go out into the community have the philosophizers - >> you have it on the 2 o'clock in the afternoon are you going to be doing any pregsdz like that in the evening because most people work in the daytime. >> couple of things the first 6

will be during the day. we clot at 6 o'clock fwhats a peak time if you're a restaurant that's your lunch break it's post their peak so our goal for the first 6 is during the daytime and moving forward after the 6 also those presentations will change because the forms will be a different presentation and they been we'll change them to up the evening. we've made ourselves available with certain organizations like the march group it's going to bring a lot of different merchant groups together and we're going to try to do that based on the needs of their businesses and the times. so march is extremely important

this is when our media campaign will begin. so you'll be seeing p.s. a's on the radios and local newspapers and getting the word out. heavily front loaded to get out in front of the registration fee. in april you'll see another library seminary. april, of course, is what we consider the golden month that's when the business registration fee e.r. wlos to when it gropes o drops. again, it drops and the deadline for payment is may 31st. all those continuing outreach with the different departments and with the small businesses and their distribution lists. so may the big month when the

registration fee drops. which gets us to the fall and june or june of 2014. at this point, we're going to take a step back and do an evacuation of our outreach and look at it what worked and what was successful and shift our meg away from the business registration foe to get educated and learn highway how this works and connect people to get them to learning learn more about the forms and process through this new gross receipts tax. one of the things we've done is created a business advisory group which is represented from all over san francisco. large and small. we've met with them once in december and we'll be he meeting

with them in february. here we're asking advise and federal bureau e feedback for the fields that are professionals in. kathleen duly is one of the members. we're looking for feedback and people to enable us to get the information outlining anti. how, you help. we ask you shire those through your e-mails and merchant associations and social networks and then notify your guests at the library. before i get to the questions part i really want to acknowledge a few people. i first want to acknowledge regunmen for whom so much of this project has been driven

she's made herself and staff and all resources available and asking us how they can do better. i want to thank the director of the economic workforce demonstrate todd he asks how to remind san francisco businesses how they can be open. greg has completely turned his personal life up and down who goes to all the meetings. last week, we started at a bar at the 8:30 in the morning and ended at 8:30 at night. also gloria chang who's the

communication person from the office of economic development. 0 how do we reach more people she wanted to know and so she's ever present in the project and i'm grateful to everyone. now questions >> questions commissioner white. >> i want to thank greg and mary ann you've been doing great outreach to get the information out to businesses is just probably the best i've seen in the city so far. and then secondly, on your outreach sheet i noticed in my is there a way to tie this into small business week >> yes. we're indefinitely working with regina to incorporate it in a way to reach