Home / News / San Francisco’s Prop C homelessness tax was a big win for Marc Benioff, but legal challenges may be coming

San Francisco’s Prop C homelessness tax was a big win for Marc Benioff, but legal challenges may be coming

Tuesday evening used to be regarded as a sweeping victory for supporters of San Francisco’s homelessness tax, Proposition C, after the measure gained 60 % of the preferred vote. But it surely seems to be as even though the struggle has most effective simply begun.

Proposition C will carry town’s gross receipts tax on corporations by means of a median of .five % on annual gross receipts over $50 million, with finances earmarked towards serving to the homeless. Opponents are challenging the results of the election, announcing that it had to go by means of two-thirds as an alternative of a easy majority so as to stand on cast felony flooring — an statement that isn’t supported by means of town lawyer’s place of work.

The chance of felony motion is now inflicting uncertainty amongst San Francisco town leaders over whether or not they must spend the estimated $250 million to $300 million a 12 months the tax will usher in, since they may have to offer that cash again if any felony demanding situations are a success.

Bringing up “present felony uncertainties related to the measure,” town controller’s place of work despatched a letter to San Francisco Mayor London Breed announcing that it’s going to accumulate taxes for Prop C starting in 2020 however grasp off on spending the finances till there’s additional readability. That’s assuming that present election effects stay ultimate within the coming weeks — if the numbers trade (not really) and Prop C in truth has two-thirds of the vote, then a felony problem turns into moot.

Getting this resolved by means of the courts may take years, consistent with the San Francisco Chronicle, and Prop C’s investment for the homeless can be take a seat unused within the intervening time. Breed, who antagonistic Prop C, mentioned the results of that risk in a press convention Wednesday.

“There’s nonetheless some uncertainty round Prop C. We’re now not certain when the finances might be to be had for use,” she mentioned on the press convention, which used to be posted online by NBC. “We will be able to’t stay up for Prop C to move in the course of the courtroom techniques so as to act.” she mentioned. Breed additionally wrote in a press unencumber Wednesday that she concurs with electorate that town must construct extra housing and shelters and that “industry pays extra to make that occur.”

Salesforce CEO Marc Benioff, one among Prop C’s greatest supporters, pushed aside felony issues.

“The folks have spoken. It’s a 60 % landslide victory for them,” he mentioned, consistent with a transcript of a gathering with journalists on Wednesday. “There can all the time be felony demanding situations, however the truth is that town wishes to move forward and now put into effect Proposition C — it’s the need of the folks,” he mentioned.

The argument boils all the way down to a felony query about whether or not particular tax measures like Prop C require a two-thirds vote or only a easy majority to go. Recently, there are two pending circumstances over earlier San Francisco poll measures that would both support or weaken Prop C’s felony footing. As a result of Prop C gained 60 % of the vote, it will fall in need of a hypothetical two-thirds requirement — however whether or not that’s essential is up for debate.

Jess Montejano, a spokesperson for the No on C marketing campaign, which is led by means of the San Francisco Chamber of Trade, wrote in a statement that town in the long run gained’t “see a penny” from the measure since the vote didn’t lead to a two-thirds majority.

Thus far, warring parties of Prop C have now not officially filed a lawsuit at the topic, however San Francisco Town Lawyer Dennis Herrera has mentioned that in the event that they did, his place of work would shield the preferred vote.

“We take our accountability to give protection to the need of the electorate very significantly. A transparent majority of electorate handed Proposition C, and we can shield their resolution in courtroom,” Herrera wrote in an electronic mail to Recode despatched by means of a spokesperson.

Tech’s warring parties of Prop C have in large part stayed out of the dialog after the vote.

Sq. spokesman Aaron Zamost — Sq., together with Stripe, used to be some of the vocal opponents of Prop C — declined to touch upon whether or not the corporate helps doable felony demanding situations to Prop C, announcing, “We look ahead to proceeding to paintings with Town Corridor to construct a greater San Francisco.” Stripe spokeswoman Kelly Sims declined to remark, pointing to the corporate’s earlier statements towards Prop C.

About Omar Salto

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