San Francisco Mayor London Breed has proposed a reduction of the city's tax on subleased space through 2029 as a way of spurring office occupancy levels.
However, an analysis released by the Controller's Office of Economic Analysis has concluded that the loss of revenue from the tax reduction is likely to outweigh any benefits from the action—because the tax on subleasing has become a major revenue stream during the pandemic.
The analysis found than an additional 50K to 100K of subleasing might result from Breed's proposal to exempt office tenants from the 3.5% commercial rent tax on sublease space they normally would have to pay, the San Francisco Business Times reported.
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