[zten]

SF has something called Healthy SF where employers have to offer health insurance plans, or pay into a city-managed health account. I think the last time I looked, for a lot of businesses, it's basically a $2.25/hr raise for your employees.

edit: The best part is, if your employees don't use the money (maybe they don't know about it or don't have any health care expenses), the business can eventually reclaim it...

The restaurant association balked at this, and encouraged businesses to list out the increased cost as a separate line item on the receipt, instead of raising menu prices, basically raising a middle finger and saying "see what you idiots voted for, now you pay for it!" I don't know why I'd be mad that I have to pay for someone's health care. That's sort of how it works, doesn't it?

Since then, it has taken on a life of its own. Some places call it a health care surcharge. Others call it a SF surcharge, or a cost adjustment, or inflation fee. It's not a tax, it's not a service charge, it's not anything but whatever arbitrary number the business wants to charge without raising their menu price. And thus, it's taxable.