| It’s been a while since we had sf offices, but back when we did sf had a pretty aggressive additional payroll tax and gross receipts taxes. I’d imagine this is likely a factor in the decision. I know for a while they were waiving some of these taxes for companies who set up offices in certain parts of the city. E.g. zendesk got a big tax break for its market street location near the tenderloin. As for commutes, I’d be pretty curious to know how many folks who work at Twitter actually show up to their offices every day, especially in eng roles. Even with a return to office mandate I can’t imagine this not becoming more hybrid over time (of course I’ve never worked for musk or his managers — but I’d assume that if folks are high output he would not care how often they were in the office). Even commuting within sf can be kind of a pain it took our folks 50 minutes from both areas in the mission and Menlo Park to get to an office in South Park. I’d be curious to know: - how folks who work at X think about this move? - how much remote work will be allowed? - tax savings. - lease savings. I’d bet getting rid of sf tax nexus was a key piece of the reason. |
Here's one summary of it as of last year:
> The infamous "Twitter tax break" provided by former Mayor Ed Lee to lure companies, including Twitter, to mid-Market by exempting them from a portion of their payroll taxes, had its sunset in 2019. Many argued that it did little to revitalize mid-Market — and certainly Twitter former fancy cafeteria didn't help in terms of workers spending money at local businesses — and it just ended up costing the city about $10 million a year in lost revenue. > https://sfist.com/2023/02/09/mayor-london-breed-announces-ta...
When the Twitter tax break expired in 2019, the Chronicle also did a pretty thorough survey of the mixed effects: https://projects.sfchronicle.com/2019/mid-market/