Resolution approving the settlement of the unlitigated claims filed by Pacific Bell Telephone Company against the City and County of San Francisco for $2,179,415; the claims were filed on March 7, 2025; the claims involve a refund of gross receipts taxes, homelessness gross receipts taxes, and overpaid executive gross receipts taxes for the 2022 tax year; other material terms of the settlement are the closure of tax years 2023 and 2024 for the gross receipts tax, homelessness gross receipts tax, and overpaid executive gross receipts tax, and that Pacific Bell Telephone Company shall take certain filing positions with respect to its gross receipts taxes and homelessness gross receipts taxes for tax year 2025 and subsequent tax years.

This resolution approves a settlement between the City and County of San Francisco and Pacific Bell Telephone Company for $2,179,425. The settlement resolves unlitigated claims filed by Pacific Bell on March 7, 2025, concerning refunds for gross receipts taxes, homelessness gross receipts taxes, and overpaid executive gross receipts taxes for the 2022 tax year. Additionally, the settlement will close tax years 2023 and 2024 for these same tax categories. A material term of the agreement is Pacific Bell's commitment to specific filing positions regarding its gross receipts and homelessness gross receipts taxes for tax year 2025 and future years.

This settlement resolves a tax dispute, resulting in a payment of $2,179,425 from the city to Pacific Bell. While this is a financial outlay, it avoids potentially higher costs and legal fees associated with litigating the claims.

high