GM goes to war against San Francisco over a $108 million tax bill it says it doesn’t owe because it has virtually no business or employees in the city

From Fortune Magazine:

General Motors is suing San Francisco over allegedly unfair taxation. The automaker claims that despite low sales and minimal personnel in the city, it was taxed $108 million over seven years. GM argues that the city used the presence of its Cruise self-driving unit to tie its tax bill to a portion of the company’s global revenue, resulting in excessive taxation. San Francisco’s city attorney is reviewing the complaint and will respond in court.

This lawsuit comes as San Francisco’s leaders aim to position the city as a worldwide innovation center following a sluggish post-pandemic recovery. The city’s gross receipts tax, which brings in about $800 million annually, would account for about 2% of the city’s taxes. GM seeks to recover almost $13 million for interest and penalties on top of the tax refund, and the company is facing fallout over its Cruise unit losing its license to operate on public roads in California in October.



Read more: GM goes to war against San Francisco over a $108 million tax bill it says it doesn’t owe because it has virtually no business or employees in the city