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.

This ordinance authorizes the settlement of three lawsuits filed by Microsoft Corporation and Subsidiaries against the City and County of San Francisco. The total settlement amount is $6,500,000. The lawsuits, 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), concern refunds of gross receipts and homelessness gross receipts taxes. A material term of the settlement also addresses Microsoft Corporation's future tax filing position with the City.

This settlement will result in a $6.5 million payout from city funds to resolve tax disputes with Microsoft. Residents may see this as a significant expenditure that could otherwise be allocated to public services.

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