San Francisco supervisors approved Mayor London Breed’s plan to eliminate annual licensing fees for 91% of restaurants and 87% of bars and nightclubs, aides said Tuesday.
The change is intended to make it easier to run, grow and open a small business, the mayor’s office said in a news release. The fees will be replaced in 2026 with revenue from Prop M, a business tax measure approved by voters in November.
The legislation indefinitely waives 49 annual licensing fees, providing $10 million annually to San Francisco entrepreneurs, the mayor’s office said.
“To help small businesses, we’ve cut red tape, lowered taxes, improved public safety and now we’re cutting even more costs,” Breed said in a statement. Currently, small business owners pay thousands of dollars in annual fees to operate restaurants, food trucks, bars and bakeries, according to the mayor’s office.
There are fees associated with things like outdoor seating, pool tables and extended hours. The majority of the fees are charged by individual city departments and collected through a uniform licensing law from the treasurer and tax collector, the mayor’s office said.
“Saving $10 million a year in small business costs is a major win for our city,” Treasurer Jose Cisneros said in a statement.
