— "The San Francisco Board of Supervisors approved a tax break to keep Twitter from fleeing the city. The measure passed 8-3 and exempts the micro-blogging service from paying payroll tax on new hires if it moves to the city’s neglected Mid-Market area.
Twitter is already outgrowing its current San Francisco headquarters in the city’s South of Market neighborhood, and the company is poised to expand from a few hundred to a few-thousand workers. While seeking a building with more office space, the company had said it had considered moving down the Peninsula to a city that has no payroll tax.
San Francisco is the only city in the state that charges companies a payroll tax; 1.5 percent of total employee compensation each year if the firm has more than $250,000 in payroll. The tax also applies to money made on stock options, a prime consideration for Twitter which is rumored to be exploring an initial public offering."
HT: Kyle Stingily