General Motors has sued San Francisco, demanding a $71 million refund because of the way the city’s gross receipts tax was applied to Cruise, a GM-owned company. And while the Tax Collectors Office rejected GM’s appeal, saying the tax was property applied, the City Attorney’s Office is recommending the city simply fold and give the giant company the money.
The taxes involved the city’s regular business tax and the increased tax imposed by Prop. C, a 2018 ballot measure that charges companies with more than $50 million in gross receipts a higher levy.
The argument is complicated, but in essence GM says it has “invested” in Cruise, which is a separate company, and GM’s payroll and gross receipts shouldn’t be counted in the tax assessment.
But General Motors itself admits that it owns essentially 100 percent of Cruise.
In a lawsuit filed in 2022, GM it shouldn’t owe any of the homelessness gross receipts tax money. The city at first fought back, and the case was set for trial in the fall of 2025.
But somewhere along the way, City Attorney David Chiu reached a proposed settlement with GM—and it calls not for a compromise but for GM to win everything it asked for.
The cost to a cash-strapped city is, of course, enormous.
The Government Audit and Oversight Committee will consider the settlement Thursday/15 at 10am.
Tesla wants to build a special charging station for its upcoming fleet of robotaxis in what is now a garage at 825 Sansome, on the edge of Jackson Square.
The Planning Department approved the conditional-use authorization, but the Teamsters Union has appealed to the full board.
Among the issues in the appeal:
Jackson Square is one of San Francisco’s most significant historic districts, preserved for its unique architectural character and scale and Fleet charging operations for Autonomous Vehicles-with constant vehicle queuing, 24/7-are fundamentally incompatible with the district’s historic residential and small-scale commercial character.
The deeper issues: The Teamsters are pushing for more regulations on robo fleets, which are an existential threat to the jobs of some 2 million people in the US whose primary occupation is truck driver.
Besides, hardly anyone in San Francisco wants to do a favor for Elon Musk.
That will be heard at the full board meeting Tuesday/13.
State Sen. Scott Wiener faced a torrent of criticism after last week’s debate, when he refused to answer a question about whether Israel’s actions in Gaza amount to “genocide.”
Then came a poll—I don’t know who commissioned it, but I know a lot of people who were polled—asking “would you vote for a candidate who refused to call Israel’s actions in Gaza genocide?”
Don’t know the result, but it’s clear that Wiener decided to shift, quickly, and put out a statement on social media saying that he does, indeed, consider Israel guilty of genocide.
That hasn’t quieted the critics; in fact, he’s now getting attacked by former Zionist allies. And the folks who booed him at the debate aren’t suddenly turning around to support him.
Of course, his two opponents jumped on the shift:
Emily Hyden, Chakrabarti’s campaign manager, criticized Wiener for only calling Israel’s actions a genocide “when it looked like it would benefit his political career.”
“That is exactly what’s wrong with opportunist establishment politicians who have failed our party,” she said.
Julie Edwards, a spokesperson for the Chan campaign, reiterated the sentiment.
“People getting killed didn’t move him but boos at a forum did,” Edwards said. “This is about politics, not principle.”
Wiener has always campaigned as someone who sticks to his principles; he said not long ago that he didn’t care if his constituents opposed his housing laws, because he was convinced he was right. This one makes him look like an opportunist. I don’t see how it helps him in June.
Full disclosure: My daughter works on the Connie Chan for Congress campaign.
