In a unanimous move, the Board of Supervisors has given the green light to Mayor London Breed's legislation aimed at axing the yearly license fees that burden local restaurants, bars, and nightclubs, a measure expected to save these establishments a sizeable $10 million annually, according to the City and County of San Francisco. The fee elimination, slated to commence in 2026, comes as a part of Proposition M's success in the November ballot, a plan that not only slims business taxes for small businesses but also ensures these saved costs are offset by the revenue Prop M generates.

The reform, co-authored by Treasurer José Cisneros and Supervisors Rafael Mandelman and Aaron Peskin, follows a thorough collaboration involving the Treasurer & Tax Collector’s Office, the Office of Economic and Workforce Development (OEWD), the Office of Small Business (OSB), multiple City departments, and small business stakeholders together this legislation indefinitely dismisses 49 different annual license costs, propelling San Francisco's position as a supporter of small businesses “like never before,” a sentiment echoed by Mayor Breed, as per the City and County of San Francisco. Moreover, the legislation reflects the city’s ongoing commitment to trim down the bureaucratic red tape that often entangles fresh and growing businesses.

Under the current system, business owners are faced with myriad fees, for outdoor seating to billiards tables to extended operating hours, many burdens that will soon be relics of the past for 91% of restaurants and 87% of bars and nightclubs who will no longer receive the yearly bill from the City as Laurie Thomas, Executive Director of the Golden Gate Restaurant Association, told the San Francisco government news release, expressing gratitude for the pro-business move. The legislation strikes at the disproportionate impact of flat fees on smaller establishments. It aligns more closely with the progressive nature of business tax structures that tend to favor small over large businesses.