March 18, 2008
San Francisco restaurants adding 'tax' to bill to pay for universal healthcare
San Francisco eateries have started adding a surcharge to restaurant meals to help pay for the city's new insurance program:
From latimes.com:
In the hip South of Market neighborhood, the menu at Tres Agaves, a popular Mexican restaurant and tequila bar, has a small message at the bottom of the first page that says, "3.5% service charge will be added to all checks for the San Francisco affordable healthcare legislation."
At issue is the city's new effort, kicked off Jan. 9, to provide healthcare for all residents. Since then, employers with more than 20 workers are required to spend a minimum amount on health insurance, set aside money in health reimbursement accounts or pay a fee to the city's Healthy San Francisco program.
The restaurant surcharges are spreading. Market Street favorite Zuni Cafe charges 4% of the total bill. Others, including Delfina, a trendy Mission District trattoria, collect a flat fee of $1 to $2 per person.
Other restaurants hide the 'fee' in their food costs to not alert patrons to the charge.
A trade association has filed suit in hopes of stopping the mandated tax. Oral arguments will be heard in April.
NPR has an audio report of the San Francisco universal health care plan.