San Francisco’s Board of Supervisors approved an ordinance late Tuesday that excludes Twitter and some other businesses from paying a 1.5% city payroll tax for the next six years, reports The Wall Street Journal.
“I would also like to thank Twitter for making a commitment to remain in San Francisco and for their enthusiasm about joining our broad-based effort to revitalize Central Market and the Tenderloin,” said San Francisco Mayor Edwin Lee in a statement. “This new partnership with Twitter represents just one example of how the City can work collaboratively with businesses, community-based organizations, property owners, and area residents to catalyze meaningful change in this neighborhood.”
It’s not quite a done deal – San Francisco’s Board of Supervisors must approve the ordinance a second time via vote, but this should be automatic.
The decision allows Twitter, currently located in the city’s South of Market area, to move their offices to San Francisco’s Central Market area, which according to Lee has been “burdened with high vacancies and blight for decades.” Prior to this tax break, Twitter had considered (even threatened, you might say) to move out of San Francisco completely.
The ordinance doesn’t apply to everybody – only companies in the Mid-Market and Tenderloin neighbourhoods will benefit from the cut, which has been initiated to encourage development in these areas.
Twitter plans to release an official statement later today.