GM files lawsuit against San Francisco for charging high tax, appeals $121 million in return

General Motors (GM) filed a lawsuit against San Francisco alleging that the GM was charged with a high tax bill compared to what it was warranted.

The revelation is coming from a case filed in California Superior Court in San Francisco, it addresses GM’s complaint against the state and seeks $108 million in recovery over seven years. GM also taps for $13 million in penalties and interest.

The Detroit-based car company said Cruise is operated separately and generates only a slight amount of sales and should not be used to calculate GM’s liabilities in the city.

The lawsuit also reveals that GM sold about $677,000 worth of products in San Francisco throughout 2022.

It’s reported that the latest lawsuit could raise issues for San Francisco over its current state of funding. The state is projecting an $800 million budget deficit over the coming two fiscal years citing various reasons.

GM said that the California Government Code mandates that the city taxes must fairly reflect the proportion of activity carried on within the city. “They do not, either generally or as applied to GM” the lawsuit mentioned.

GM was also criticized for its self-driving Cruise robotaxi, which led to an October 2 incident colliding with a female pedestrian and dragging her about 20 feet distance in a post-collision.

Following this incident, California’s Department of Motor Vehicle suspended Cruise’s license and called it unsafe for public operations.

(source – Reuters)