San Francisco lawmakers are scheduled to vote today on a tax break that will offer enough incentives to Twitter to entice the giant tech company to stay within city walls. If they vote against the tax break, it’s likely that Twitter will relocate not to a new area of San Francisco, but outside of the city altogether.
Earlier this year, Twitter made it official: it needed a new office. The company has expanded from about 150 employees a little over a year ago to more than 450 today, and they’re looking for the office space to hold their growing workforce.
To prevent Twitter from looking towards city centers with lower taxes for businesses, San Francisco’s lawmakers proposed a tax break for a company relocating to its blighted mid-Market area. Specifically, companies would be exempt from paying payroll taxes on new hires for the next six years.
The city has presented this tax break as an option for any business willing to relocate to the crime-ridden mid-Market area, but they’re clearly trying to court Twitter in particular.
And just last month, Twitter apparently signed a Letter of Intent committing to stay in San Francisco if the tax break went through.
Not everyone would be happy with the proposed tax break, however. Demonstrators marched on Twitter’s current headquarters just last week, protesting on behalf of lower income residents of the mid-Market area who might not be able to afford the increased cost of living an injection like Twitter’s relocation would bring to the area.
So it all comes down to the vote today. By tomorrow morning, we’ll know whether Twitter remains in startup-friendly San Francisco, or moves on to unknown pastures outside of its home city.
- Instagram is Now Worth More Than Twitter
- Twitter Selling Ads, Eyeing Growth (And Battling Censorship) in #Russia
- After #Instagram’s Spammer Purge, #Twitter Must be Bigger Now. Right?
- Twitter Must Ban Racist, Anti-Semitic Words, Says MP