The San Francisco Board of Supervisors committee made a business deal Wednesday that will not only help keep Twitter in the City, but help revitalize the mid-Market district.
Any company that sets up shop in the Mid-Market area would be exempt from a 1.5 percent payroll tax. The committee approved the plan Wednesday, it should go to the full board soon.
Proponents of the proposal say it will revitalize mid-Market. Opponents said it gives away too much potential revenue from city coffers and they say it covers to broad of a geographic area.
Earlier this month Twitter sent that a letter to city officials promising it would lease the old Furniture Mart building at Ninth and Market street in mid-Market in exchange for the tax break. Twitter said without the break "Twitter would not be able to justify the cost burden of staying in San Francisco."
The company has considered moving outside the city limits to save paying the tax which could add up in the millions of dollars if the company's planned IPO is as successful as anticipated.
TechCrunch has reported extensively about San Francisco's payroll tax. It says it is one of the city's largest revenue sources. TechCrunch also says the San Francisco collects more than other cities of its size.
