Twist in California citys plot for new grocery store tax that would send prices rocketing

A controversial plan to slap a new tax on vacant grocery stores in San Francisco has been abruptly shelved after running into resistance from City Hall and the business community.Supervisor Bilal Mahmood said Sunday he is dropping the proposed tax and will instead pursue a city ordinance aimed at expanding access to grocery stores through incentives, funding and zoning reforms.The reversal comes just weeks after Mahmood unveiled his “Affordable Groceries Act,” which originally called for two measures to go before voters in November.One would have established a city-run fund that could help corner and convenience stores expand their fresh food offerings and support new grocery stores.The other would have targeted large chains that leave former grocery store locations sitting vacant with a new tax.But the tax proposal quickly ran into opposition from Mayor Daniel Lurie, business interests and concerns among Mahmood’s fellow supervisors.Mahmood will now focus on advancing the grocery fund through an ordinance rather than asking voters to approve the original pair of ballot measures.The revamped effort would divert funding toward helping convenience stores stock fresh produce while using incentives and zoning changes to encourage new supermarkets to open.“Ultimately, it’s clear there is no consensus at City Hall on corporate accountability or on solutions that mix carrots and sticks at this time,” Mahmood wrote on social media.“But we have to be driven by results and find a path forward on solutions that are possible to drive consensus around today.”The original proposals came as San Francisco grapples with a string of major supermarket closures that have left some neighborhoods with fewer options for groceries and fresh food.Mahmood had previously said his proposals were inspired in part by New York City Mayor Zohran Mamdani’s push for city-run grocery stores as a way to tackle food costs.San Francisco’s plan stopped short of having the city itself ...