The ordinance authorizes the City of San Francisco to settle lawsuits with Microsoft for $6.5 million related to tax refunds. The lawsuits concern gross receipts and homelessness gross receipts taxes filed in 2021 and 2025.
Ordinance authorizing settlement of the lawsuits filed by Microsoft Corporation and Subsidiaries against the City and County of San Francisco for $6,500,000; the lawsuits were filed on February 26, 2021, April 23, 2021, and June 3, 2025, in San Francisco Superior Court, Case Nos. CGC-21-590032, CGC-21-591004, and CGC-25-625880; entitled Microsoft Corporation and Subsidiaries. v. City and County of San Francisco et al.; the lawsuits involve a refund of gross receipts and homelessness gross receipts taxes; other material terms of the settlement relate to Microsoft Corporation’s filing position with respect to City taxes.
How it got here
The legislation originated from lawsuits filed by Microsoft Corporation against the City and County of San Francisco regarding tax refunds.
Microsoft Corporation filed a lawsuit against the City and County of San Francisco regarding a refund of gross receipts and homelessness gross receipts taxes.
A second lawsuit was filed by Microsoft Corporation against the City concerning similar tax refund issues.
Microsoft Corporation filed a third lawsuit against the City, continuing the dispute over tax refunds.
The City Attorney prepared a proposal for settling the lawsuits, recommending a payment of $6,500,000 to Microsoft Corporation.
The Government Audit and Oversight Committee recommended the settlement proposal for approval.
The Board of Supervisors passed the ordinance on first reading, authorizing the settlement.
The Board of Supervisors finally passed the ordinance, officially authorizing the settlement.
The Mayor approved the ordinance, finalizing the settlement with Microsoft Corporation.
Reconstructed from attached documents & the official record
