Transportation
GM Blasts San Francisco in Lawsuit Over $108 Million Tax Bill
- Company says city unfairly based tax calculations on Cruise
- GM, Cruise operate as separate entities, automaker claims
The company said that San Francisco used the presence of its Cruise self-driving unit to tie its tax bill to a portion of GM’s global revenue.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
General Motors Co. said in a lawsuit that San Francisco unfairly taxed it $108 million over seven years, despite the automaker having very low sales and almost no personnel in the city.
The company said that San Francisco used the presence of its Cruise self-driving unit to tie its tax bill to a portion of GM’s global revenue, which meant more than $3 billion was subject to city taxes last year alone. GM argued that San Francisco-based Cruise is wholly separate from GM and only began generating a small amount of revenue last year.