Twitter Tax Break Faces Surprise Challenge from Public Union

[Kadie]

Twitter Tax Break Faces Surprise Challenge from Public Union
SEIU Local 1021 calls measure a "taxpayer handout," threatens referendum

By GERRY SHIH on March 18, 2011 - 9:35 p.m. PDT

A tax break designed to keep Twitter in San Francisco that earlier this week appeared all but guaranteed to pass is now meeting with opposition from San Francisco's largest public-employee union.

“It’s a taxpayer handout to a $10 billion company at a time we’re cutting basic city services,” Roxanne Sanchez, the president of Service Employees International Union Local 1021, said Thursday.

The move by one of the city’s most powerful and well-funded organizations, with 17,000 members, raised the possibility of a protracted fight over a measure that proponents — including the mayor — say is desperately needed to spur economic growth in the distressed mid-Market and Tenderloin neighborhoods. The measure would exempt companies located in those areas from paying payroll taxes on new hires for six years. It was tailored for Twitter, which has outgrown its South of Market offices and is looking to move.

Just this week, the Internet company told city officials that it had reached a tentative lease agreement with the landlord of 1355 Market St. pending the Board of Supervisors' approval of the tax break. Several supervisors, including the legislation’s opponents, acknowledged that the measure had enough support to pass the full board. The board’s budget and finance committee will first vote on it next Wednesday.

more...
http://www.baycitizen.org/politics/story/twitter-tax-break-surprise-challenge/

[dkf]

1. If the union gets it's wish the company will probably move.

Oh well. So much for job growth in SF.

My brother's company moved to Florida for tax reasons. They managed to shed all the high paid execs who didn't want to move too, replacing San Francisco wages with Florida wages.

[FreakinDJ]

2. How do you Expempt Payroll Taxes

[dkf]

3. It's usually a tax credit or a deduction I assume.

[Luminous Animal]

6. It is a local payroll tax.

[Luminous Animal]

4. If Twitter moves, I say good riddance.

How the Twitter tax break grew into an expensive giveaway that involves police patrols, a new Muni line — and a lot of real estate

http://www.sfbg.com/2011/03/15/behind-tweets

"The result was a proposal that could cost the cash-strapped city more than $17 million — a cost that even the city's fairly conservative economist Ted Egan told the Guardian isn't justified for many of the properties that were included in the proposal, particularly the large commercial office buildings along Market Street and the small businesses in the Tenderloin.

....

The proposal would exempt companies in Mid-Market and the Tenderloin from paying the city's 1.5 percent business payroll tax on any new jobs they create for six years. It was sweetened even more for Twitter — city officials promised the company a new Muni line, police foot patrols, and various other tax credits and exemptions to improve Twitter's cash flow, the documents show."

[dkf]

7. So be it.

[Luminous Animal]

8. If Twitters blackmail is thwarted, they plan on moving to Brisbane. About 2000 ft.

outside the city's boundary.

[catabryna]

9. Typical corporate bullshit you can always count on!

I had to go and look for other sources of information because the one linked in the OP had a definite slant to it and left out a lot of unanswered questions in my mind.

[Luminous Animal]

10. The Bay Guardian article that I linked to has a lot of info.

http://www.sfbg.com/2011/03/15/behind-tweets

As it points out, not only is the city poised to hand them money but they'll get their own private publicly funded police force and bus line.

[catabryna]

12. Thanks for the article...

will read it in a bit... life is calling! :thumbsup:

[Mojorabbit]

11. I saw an article here

with a survey of businessess and tax rates were only number 6 in consideration.

[catabryna]

5. This is corporate welfare plain and simple...

I say if Twitter isn't interested in remaining in San Francisco for the availability of highly skilled workers and great quality of life, let them go to Florida. They are a $10 billion dollar corporation; this isn't going to break their bank account.

[msongs]

13. let twitter users pay to subsidize the billion dollar corporation. or maybe twits won't pay lol. nt