General Motors GM files lawsuit against San Francisco
General Motors (NYSE:GM) has filed a lawsuit against the city of San Francisco, aiming to reclaim over $100 million. The lawsuit alleges that the tax bill imposed on GM was inaccurately calculated, attributing this miscalculation to the improper use of its Cruise self-driving car unit in the calculations.
In the lawsuit filed in California Superior Court in San Francisco, GM is pursuing $108 million in unpaid taxes spanning seven years, along with $13 million in penalties and interest, as stated in the complaint.
General Motors, headquartered in Detroit, asserts that its San Francisco-based subsidiary, Cruise, operates independently and generates minimal sales. GM argues that these modest sales should not be factored into the company's tax liabilities in a city where the parent company has limited operations.
According to the lawsuit, GM's total sales in San Francisco for 2022 amounted to only around $677,000.
Although the funds in question would make up a minor fraction of GM's reported $156.7 billion in sales for 2022, the lawsuit coincides with San Francisco facing an anticipated $800 million budget shortfall over the next two fiscal years due to a pandemic-related recovery slowdown.
Shares of GM are down 0.33% in pre-market trading on Thursday.
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