GM Sues San Francisco Over Incorrect Tax Bill

Introduction

General Motors (GM) has filed a lawsuit against San Francisco, seeking a refund of $108 million plus $13 million in interests and penalties. The dispute is not related to the recent ban on GM’s self-driving robotaxis in the city but rather concerns tax payments made by the company over a seven-year period.

The Tax Dispute

According to Bloomberg, GM believes it has overpaid taxes and wants a refund for the period between 2016 and 2022. The company argues that tax officials used payroll data from its Cruise division to calculate the tax liability. However, GM asserts that Cruise is a separate business entity and generates minimal sales in the area. The lawsuit claims that GM’s core automotive business does not employ anyone in the city, has no physical locations or dealerships there, and only sold around $677,000 worth of goods in 2022.

Impact on GM and San Francisco

This legal battle further strains the relationship between GM and San Francisco. Earlier, GM had to remove its Cruise robotaxis from U.S. roads following an accident in the city where a pedestrian was dragged under one of Cruise’s autonomous Chevy Bolts. The incident led to the suspension of Cruise’s autonomous permits by California’s Department of Motor Vehicles. As a result, GM announced a 24% reduction in the Cruise workforce, resulting in 900 job losses.

Conclusion

The lawsuit filed by GM against San Francisco highlights the disagreement over tax payments. While GM seeks a refund, the city faces the challenge of addressing safety concerns related to autonomous vehicles. The outcome of this legal battle will have implications for both parties involved.