# San Francisco Overpaid CEO Tax On **June 2, 2026**, San Francisco voters rejected **Prop D, the "Overpaid CEO Act."** It was a labor-backed expansion of the city's tax on companies whose top executive earns at least 100 times the median employee's pay. They also rejected **Prop C**, a business-backed rival written to defeat it. It was the city's first major tax fight of [[Daniel Lurie]]'s term, and the first time he publicly took the business side against organized labor. > [!warning] Two Prop Ds in one year > This is the **June** Prop D. The **November 3, 2026** Prop D is part of Lurie's [[San Francisco Charter Reform]] package. ## The two measures | | Prop D: "Overpaid CEO Act" | Prop C: "Decreases to Business Taxes" | |---|---|---| | **Placed by** | Labor coalition: Stand Up for SF, SEIU Locals 1021 and 2015, IFPTE Local 21 | SF Chamber of Commerce with [[Neighbors for a Better San Francisco]] | | **What it did** | Expanded the executive-pay tax to count **all employees, wherever they work**, not just staff based in San Francisco | Raised the small-business gross-receipts exemption from **$5M to $7.5M** and locked in the 2024 tax rates | | **Revenue** | About $200M a year by backers' estimate; $250–300M a year by the City Controller's | Revenue loss | | **Poison pill** | n/a | If both passed, only the one with more votes would take effect | | **Backed by** | Unions, progressive groups; Saikat Chakrabarti gave $500K *(KALW; single-source)* | [[GrowSF]], Bay Area Council, Chamber of Commerce | | **Result** | **Failed**, with roughly 53–54% voting No | **Failed**, with roughly 66% voting No | Reported No shares on Prop D range from **52.8% to 54%** (Wikipedia citing official returns, KQED 53.6%, Mission Local 54–46). The vault gives the range rather than a single figure. The election was certified June 25 with 271,520 ballots cast. ## The money Spending figures depend on the reporting date. The anti-D side, including Yes on C, reported $4.12M by May 7 and about **$6.6M** by the end. Yes on D reported $1.71M by May 7 and more than **$3.3M** by election night. [[Chris Larsen]] gave $700,000 against Prop D. KALW's donor list for the No side includes [[Michael Moritz]], [[Sergey Brin]], DoorDash's Tony Xu, and corporate money from Amazon, PG&E, Visa, Gap, Uber and DoorDash. ## Lurie's role - **Late January 2026.** Lurie asks [[Chris Larsen]], developer Lou Giraudo and former City Controller Ben Rosenfield to broker a deal under which both sides would withdraw. The talks fail before the **Feb 2** withdrawal deadline. - **Feb 6, 2026.** Lurie announces he opposes both measures: "Neither measure moves San Francisco forward." Mission Local's web address for this story still reads "takes no position," but the headline was corrected to say he opposes both. - **Spring 2026.** He becomes the public face of No on D, arguing that "our recovery depends on creating opportunity through jobs, thriving small businesses and attracting investment." ## Why it matters in this KB The tax drew the city's tech wealth onto one side: the crypto Democrat (Larsen), the TogetherSF financier (Moritz), and the Google co-founder already spending heavily against the statewide [[California Billionaires Tax]] (Brin). It was a dry run, five months early, for the two November fights: Lurie's [[San Francisco Charter Reform]] and the statewide Prop 40. Lurie took the same side in all three. ## See Also - [[Daniel Lurie]] · [[San Francisco Charter Reform]] · [[California Billionaires Tax]] - [[Chris Larsen]] · [[Michael Moritz]] · [[GrowSF]] · [[Neighbors for a Better San Francisco]]