Lyft has accused the city of San Francisco of employing a flawed tax methodology that leads to an inflated assessment of its gross receipts, essentially taxing Lyft on the total fares collected by passengers instead of just the company's revenue share.
In its lawsuit, Lyft is not only seeking to recover the alleged overpaid taxes of $100 million since 2019, but is also asking for additional punitive damages, illustrating the magnitude of their claims and the potential financial impact of this dispute.
This lawsuit underscores a broader issue regarding the classification of rideshare drivers as independent contractors, which may have implications for how rideshare companies handle their finances and compliance with local tax laws.
A spokesperson from the San Francisco City Attorney's Office noted that they will review the complaint and respond, highlighting the city government’s intention to address the allegations while the legal process unfolds.
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