Prop C, The Tax on Large Companies to Help the Homeless, Just Passed in San Francisco.

Known as Proposal C, the measure establishes a variable tax on companies with gross revenues over $ 50 million. Members of the Bay Area have a public sparring over the proposal. Salesforce CEO Marc Benioff has been one of its staunchest advocates while Twitter and Square CEO Jack Dorsey has called the plan ineffective. Stripe CEO Patrick Collison has also opposed the plan.

"Prop C's victory means the homeless will have a home and the help they truly need!" Benioff tweeted Tuesday night. "Let the city come together in love for you, who need it most! There is no end line when it comes to helping you.

Dorsey and Collison commented on social media about the results of the vote.

Part of the opposition is based on their gross receipts, rather than net income. This means the tax could be taken into the profits of businesses with high gross revenue.

The amount businesses will be taxed depends on their industry. The highest rate – 0.69 percent – will be reserved for businesses in the administration and support services industry and the private education and health services industries. Retailers and wholesalers will be charged 0.175 percent of their taxable gross receipts, while they will be taxed at a rate of 0.60 percent. Information services like Salesforce would have a 0.50 percent tax.

Voters approved Prop C by a 60 percent majority, but the measure still faces a legal hurdle. Although California's Supreme Court ruled in 2017, it was a full-time tax breaker. with specific purposes.