The ordinance authorizes the City to settle a lawsuit with IBM for approximately $2.66 million, which includes claims for overpaid taxes from 2019 to 2022. This settlement resolves the legal dispute filed by IBM in October 2024.
Ordinance authorizing settlement of the lawsuit filed by International Business Machines Corporation against the City and County of San Francisco for $2,659,826.83 plus interest; the lawsuit was filed on October 28, 2024, in San Francisco Superior Court, Case No. CGC-24-619318; entitled International Business Machines Corporation v. City and County of San Francisco; the lawsuit involves claims for refund of payroll expense, gross receipts, homelessness gross receipts, and overpaid executive gross receipts taxes paid to the City for the 2019 to 2022 tax years, plus interest.
How it got here
The legislation originated from a lawsuit filed by IBM against the City for tax refunds, leading to a settlement authorization.
IBM filed a lawsuit against the City and County of San Francisco in Superior Court, seeking a refund for various taxes paid from 2019 to 2022.
The City Attorney recommended settling the lawsuit for $2,659,826.83 plus interest, as authorized by Charter Section 6.102(5).
The Government Audit and Oversight Committee reviewed the settlement proposal and recommended it for approval.
The Board of Supervisors passed the ordinance on first reading, authorizing the settlement.
The Board of Supervisors finally passed the ordinance, completing the legislative process.
The Mayor approved the ordinance, finalizing the settlement agreement.
Reconstructed from attached documents & the official record
