CALIFORNIA CHAOS: San Francisco Voters Pass 'Homeless Tax' on Large Corporations

Salesforce CEO Marc Benioff led the push for passing Proposition C in the tech community

Salesforce CEO Marc Benioff led the push for passing Proposition C in the tech community

San Francisco voters were leaning toward approving a ballot measure that would tax corporate businesses to fund services for the homeless, according to early results Tuesday night. Businesses with over $50 million in gross annual receipts would be taxed at about 0.5 percent and those with over $1 billion in gross annual receipts would pay 1.5 percent of payroll expenses.

Though it's expected to affect 300 to 400 businesses, many regard it as an effort to get the city's newcomer tech companies to help solve a homelessness crisis that's come to define the city as much as the tech industry has. Just weeks before the election, the United Nations singled out the issue of homelessness in San Francisco as being "cruel and inhumane" and "in violation of human rights".

The New York Post reported the money will be used for new permanent and short-term shelters, mental health services and preventable measures for the city's estimated 7,500 homeless individuals and 1,200 families forced to live on the streets. If it passes, it will almost double San Francisco's budget dedicated to the curbing homelessness by adding $300 million a year to fund housing, shelters, mental health services and preventive measures.

The most vocal advocate among those who will be taxed has been Salesforce CEO Marc Benioff, who pledged at least $2 million to help it pass.