General Motors wants $71 million from SF, and the city attorney wants to fold - 48 hills

"General Motors has sued San Francisco, demanding a $71 million refund because of the way the city's gross receipts tax was applied to Cruise, a GM-owned company. And while the Tax Collectors Office rejected GM's appeal, saying the tax was property applied, the City Attorney's Office is recommending the city simply fold and give the giant company the money. The taxes involved the city's regular business tax and the increased tax imposed by Prop. C,"

"The argument is complicated, but in essence GM says it has "invested" in Cruise, which is a separate company, and GM's payroll and gross receipts shouldn't be counted in the tax assessment. But General Motors itself admits that it owns essentially 100 percent of Cruise. In a lawsuit filed in 2022, GM it shouldn't owe any of the homelessness gross receipts tax money."

General Motors sued San Francisco seeking a $71 million refund over the city's application of the gross receipts tax to Cruise, a GM-owned company. The Tax Collector's Office rejected GM's appeal as the tax being properly applied, while the City Attorney's Office is recommending a full refund. Taxes at issue include the regular business tax and the higher levy under Prop. C for companies with over $50 million in gross receipts. GM contends it "invested" in Cruise and that Cruise's payroll and receipts should not be taxed to GM despite near-total ownership. A 2022 lawsuit was set for a fall 2025 trial; a proposed settlement would eliminate the city's defense and impose a large cost. The Government Audit and Oversight Committee will consider the settlement Thursday/15 at 10am.

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