(ConservativeFreePress.com) – General Motors (GM) is taking legal action against the city of San Francisco, seeking to reclaim $108 million in taxes and an additional $13 million in interest. GM argues that these taxes, imposed since 2016, are unjust.
Filed in the California Superior Court and the County of San Francisco on Friday, GM’s lawsuit contends that the city overcharged them by including revenues from its Cruise self-driving car division. GM maintains that Cruise, despite being a subsidiary acquired in 2016 and based in San Francisco, operates independently with distinct revenue models and operational structures.
GM is demanding reimbursement for what it considers excessive taxation from 2016 through 2022, including nearly $13 million in interest and penalties. The automaker highlights that Cruise’s physical and operational footprint in San Francisco is minimal, with no employees, manufacturing facilities, or dealerships in the city. In 2022, GM reported only about $677,000 in sales in San Francisco.
The timing of GM’s legal challenge, given that it had previously complied with the city’s tax assessments, was not explained in the lawsuit, as noted by the San Francisco Chronicle.
The lawsuit comes at a time when Cruise has faced setbacks, including the resignation of its CEO last November. The withdrawal of its self-driving fleet from public roads for software updates followed a series of accidents. One notable incident on October 2 involved a Cruise vehicle in a collision with a pedestrian who had been pushed into its path by another car.
Following these events and safety concerns, California authorities revoked Cruise’s driverless permits, citing the vehicles’ unsuitability for public use. This development adds another layer of complexity to GM’s ongoing dispute with San Francisco over tax assessments.
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