FAIR WAGES FOR EDUCATORS PARCEL TAX ORDINANCE

SF-BUSTAX art. 37

in effect

SF Business and Tax Regulations Code § 3701 SHORT TITLE.

SEC. 3701. SHORT TITLE. This Article 37 shall be known as the “Fair Wages for Educators Parcel Tax Ordinance,” and the tax it imposes shall be known as the “Fair Wages for Educators Parcel Tax.” (Added by Proposition J, 11/3/2020, Eff. 7/1/2021)

SF Business and Tax Regulations Code § 3702 DEFINITIONS.

SEC. 3702. DEFINITIONS. For purposes of this Article 37, the following definitions shall apply: “Assessor” means the Assessor-Recorder of the City and County of San Francisco, or the Assessor-Recorder’s designee. “City” means the City and County of San Francisco. “Controller” means the Controller of the City and County of San Francisco, or the Controller’s designee. “Fiscal Year” means the period starting July 1 and ending on the following June 30. “Parcel” has the meaning set forth in Section 3703. “School District” means the San Francisco Unified School District. “Tax” means the Fair Wages for Educators Parcel Tax imposed by this Article 37. “Tax Collector” means the Tax Collector of the City and County of San Francisco, or the Tax Collector’s designee. (Added by Proposition J, 11/3/2020, Eff. 7/1/2021)

SF Business and Tax Regulations Code § 3703 PARCEL.

SEC. 3703. PARCEL. (a) “Parcel” means a unit of real estate, except a possessory interest, in the City with an Assessor’s parcel number as shown on the most current official assessment roll of the Assessor on July 1 of the Fiscal Year for which the Tax is imposed. However, both of the following conditions shall apply: (1) A Parcel created by a subdivision map approved in accordance with the Subdivision Map Act (Division 2 (commencing with Section 66410) of Title 7 of the California Government Code) shall be deemed to be a single assessment unit and shall not be deemed, on the basis of multiple Assessor’s parcel numbers assigned by the Assessor, to constitute multiple assessment units. (2) A Parcel that has not been subdivided in accordance with the Subdivision Map Act (Division 2 (commencing with Section 66410) of Title 7 of the California Government Code) may be deemed to constitute a separate assessment unit only to the extent that the Parcel has been previously described and conveyed in one or more deeds separating it from all adjoining property. (b) If the Parcel identified pursuant to subsection (a)(1) or (a)(2) is not consistent with the property’s identification by Assessor’s parcel number, it shall be the responsibility of the Parcel owner to provide the Tax Collector with written notice of the correct Assessor’s parcel number of taxable Parcels pursuant to this Section 3703 within 90 days after the date of the initial tax bill containing the Tax. (Added by Proposition J, 11/3/2020, Eff. 7/1/2021)

SF Business and Tax Regulations Code § 3704 IMPOSITION.

SEC. 3704. IMPOSITION. (a) Unless otherwise provided in this Article 37, on July 1 of each Fiscal Year there is hereby imposed an annual Tax of $288 on each Parcel in the City for the purposes described in Section 3709. (b) Commencing with Fiscal Year 2022-2023, the Tax rate shall be adjusted annually in accordance with the San Francisco All Items Consumer Price Index for All Urban Consumers (CPI-U) as reported by the U.S. Department of Labor’s Bureau of Labor Statistics. (c) The Tax shall take effect on July 1, 2021 for Fiscal Year 2021-2022, and shall continue in effect for each Fiscal Year thereafter until June 30, 2038, after which date it shall expire by operation of law. (Added by Proposition J, 11/3/2020, Eff. 7/1/2021)

SF Business and Tax Regulations Code § 3705 EXEMPTIONS.

SEC. 3705. EXEMPTIONS. (a) The following Parcels shall be exempt from the Tax: (1) Parcels on which no ad valorem property tax is levied for the Fiscal Year; and (2) Parcels in which an individual who is 65 years of age or older before July 1 of the Fiscal Year owns a beneficial interest, where such homeowner occupies the Parcel as the homeowner’s principal residence. (b) To claim an exemption from the Tax under subsection (a)(2), the owner must submit an application to the Tax Collector by the deadline set by the Tax Collector. The application shall be accompanied by such evidence as the Tax Collector deems necessary to determine eligibility for the exemption. The Tax Collector shall prepare forms for this purpose. Exemptions granted under subsection (a)(2) shall be automatically renewed in subsequent Fiscal Years absent a change in a material fact. Owners of Parcels receiving an exemption under subsection (a)(2) must notify the Tax Collector if the Parcel no longer qualifies for the exemption. (Added by Proposition J, 11/3/2020, Eff. 7/1/2021)

SF Business and Tax Regulations Code § 3706 COLLECTION.

SEC. 3706. COLLECTION. (a) The Tax shall be collected by the City in two approximately equal installments in the same manner and on the same dates as established by law for the collection of ad valorem property taxes. The collection of the Tax shall be subject to the regulations and procedures governing the collection of ad valorem property taxes by the City, including, without limitation, the imposition of penalties, fees, and interest on the failure to remit or the delinquent remittance of the Tax, and refunds of Taxes, penalties, fees, and interest. (b) The Tax Collector is charged with the responsibility of overseeing the collection and receipt of the proceeds of the Tax. (Added by Proposition J, 11/3/2020, Eff. 7/1/2021)

SF Business and Tax Regulations Code § 3707 REGULATIONS.

SEC. 3707. REGULATIONS. The Tax Collector is authorized to promulgate rules and regulations to implement this Article 37. (Added by Proposition J, 11/3/2020, Eff. 7/1/2021)

SF Business and Tax Regulations Code § 3708 DEPOSIT OF MONEYS COLLECTED.

SEC. 3708. DEPOSIT OF MONEYS COLLECTED. All monies collected under this Article 37 shall be deposited to the credit of the Fair Wages for Educators Fund, established in Administrative Code Section 10.100-72, which shall be a category four fund under Administrative Code Section 10.100-1. The Fund shall be maintained separate and apart from all other City funds and shall be subject to appropriation. Any balance remaining in the Fund at the close of any Fiscal Year shall be deemed to have been provided for a special purpose within the meaning of Charter Section 9.113(a) and shall be carried forward and accumulated in the Fund for the purposes described in Section 3709. (Added by Proposition J, 11/3/2020, Eff. 7/1/2021)

SF Business and Tax Regulations Code § 3709 EXPENDITURE OF PROCEEDS.

SEC. 3709. EXPENDITURE OF PROCEEDS. (a) Subject to the budgetary and fiscal provisions of the Charter, monies in the Fair Wages for Educators Fund shall be appropriated on an annual or supplemental basis and used exclusively for the following purposes: (1) Up to 1% of the proceeds of the Tax, in any proportion, to the Tax Collector and other City Departments, for administration of the Fair Wages for Educators Parcel Tax and administration of the Fair Wages for Educators Fund. (2) Refunds of any overpayments of the Tax, including any related penalties, interest, and fees. (3) All remaining amounts to be transferred to the School District, which shall use these proceeds only for the following purposes, with the School District having sole discretion as to allocation of the proceeds among any or all of these purposes: (A) Raising the salaries of teachers so the School District can compete with other school districts in recruiting and retaining qualified and prepared teachers to support student achievement; (B) Raising the salaries of paraeducators so the School District can better support individualized learning; (C) Increasing staffing and support at high-needs schools; (D) Increasing staffing and program funding at Community Schools; (E) Providing additional professional development to all teachers and paraeducators; (F) Providing more competitive compensation and/or benefits to other School District personnel; (G) Investing in 21st century technology, including providing support for digital teaching and learning tools for students, educators, and their families; (H) Allocating funds to public charter schools in the City; and (I) Providing oversight to ensure the proceeds from the Tax are spent only for the purposes described in this subsection (a). (b) The Controller shall, with every disbursement made to the School District pursuant to this Article 37, require the School District to verify in writing that it will use the funds only for the purposes set forth in subsection (a)(3). (c) Commencing with a report filed no later than February 15, 2023, covering the fiscal year ending on June 30, 2022, the Controller shall file annually with the Board of Supervisors, by February 15 of each year, a report containing the amount of monies collected in and expended from the Fair Wages for Educators Fund during the prior Fiscal Year, the status of any project required or authorized to be funded by this Section 3709, and such other information as the Controller, in the Controller’s sole discretion, shall deem relevant to the operation of this Article 37. (Added by Proposition J, 11/3/2020, Eff. 7/1/2021)

SF Business and Tax Regulations Code § 3710 SUPPLEMENT TO EXISTING SCHOOL DISTRICT FUNDING.

SEC. 3710. SUPPLEMENT TO EXISTING SCHOOL DISTRICT FUNDING. (a) The People of the City and County of San Francisco find and declare that major urban school districts such as San Francisco’s serve an ethnically and economically diverse student population that requires more resources than currently provided. In adopting this Tax, the People of the City and County of San Francisco choose to provide additional City resources to complement, and not supplant, City, State, Federal and other funding for the School District. (b) Consistent with subsection (a), the People of the City and County of San Francisco find that the contributions to and disbursements from the Fair Wages for Educators Fund are discretionary expenditures by the City for the direct benefit of the children of the City, their families, and the community at large. In the event that the State attempts, directly or indirectly, to redistribute these expenditures to other jurisdictions or to offset or reduce State or Federal funding to the School District because of the contributions to and disbursements from the Fair Wages for Educators Fund, the City shall transfer monies that would otherwise be distributed to the School District each year from the Fair Wages for Educators Fund to the City’s Children and Youth Fund established in Charter Section 16.108, or such other fund as the Board of Supervisors may designate, to be spent for purposes which are substantially equivalent to the purposes set forth in Section 3709(a)(3). (c) The Tax is intended to be in addition to and not to replace any other monies provided by the City to the School District, including but not limited to the Public Education Enrichment Fund (“PEEF”). This Article 37 does not authorize a reduction in disbursements from the City to PEEF. (Added by Proposition J, 11/3/2020, Eff. 7/1/2021)

SF Business and Tax Regulations Code § 3711 OVERSIGHT.

SEC. 3711. OVERSIGHT. The independent oversight committee appointed by the School District’s Board of Education pursuant to Proposition A on the June 3, 2008 San Francisco ballot shall, starting with Fiscal Year 2021-2022, submit a report on at least an annual basis to the Mayor, Board of Supervisors, and Board of Education evaluating whether the proceeds from the Tax are being properly expended for the purposes set forth in Section 3709(a)(3). If that oversight committee is unwilling or unable to perform this function for any reason, then the City may establish an oversight committee to submit a report on at least an annual basis to the Mayor, Board of Supervisors, and the Board of Education evaluating whether the proceeds from the Tax are being properly expended for the purposes set forth in Section 3709(a)(3). (Added by Proposition J, 11/3/2020, Eff. 7/1/2021)

SF Business and Tax Regulations Code § 3712 AMENDMENT OF ORDINANCE.

SEC. 3712. AMENDMENT OF ORDINANCE. The Board of Supervisors may amend or repeal this Article 37 by ordinance by a two-thirds vote and without a vote of the people except as limited by Articles XIII A and XIII C of the California Constitution. (Added by Proposition J, 11/3/2020, Eff. 7/1/2021)

SF Business and Tax Regulations Code § 3713 SEVERABILITY.

SEC. 3713. SEVERABILITY. (a) Except as provided in Section 3713(b), if any section, subsection, sentence, clause, phrase, or word of this Article 37, or any application thereof to any person or circumstance, is held to be invalid or unconstitutional by a decision of a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions or applications of this Article. The People of the City and County of San Francisco hereby declare that, except as provided in Section 3713(b), they would have adopted this Article 37 and each and every section, subsection, sentence, clause, phrase, and word not declared invalid or unconstitutional without regard to whether any other portion of this Article or application thereof would be subsequently declared invalid or unconstitutional. (b) If the imposition of the Fair Wages for Educators Parcel Tax in Section 3704 is held in its entirety to be facially invalid or unconstitutional in a final judicial decision, the remainder of this Article 37 shall be void and of no force and effect, and the City Attorney shall cause it to be removed from the Business and Tax Regulations Code. (Added by Proposition J, 11/3/2020, Eff. 7/1/2021)

SF Business and Tax Regulations Code § 3714 SAVINGS CLAUSE.

SEC. 3714. SAVINGS CLAUSE. No section, clause, part, or provision of this Article 37 shall be construed as requiring the payment of any Tax that would be in violation of the Constitution or laws of the United States or of the Constitution or laws of the State of California. (Added by Proposition J, 11/3/2020, Eff. 7/1/2021)

Source: City and County of San Francisco, Charter and Municipal Codes (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/san_francisco/latest/sf_business/0-0-0-49740Fetched: 11/1/2026