FILE NO. 200539

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ORDINANCE NO.

[Settlement of Lawsuit - Square, Inc. - $7,017,894.75]

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Ordinance authorizing partial settlement of the lawsuit filed by Square, Inc. against the

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City and County of San Francisco for $7,017,894.75; the lawsuit was filed on September

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6, 2019, in San Francisco County Superior Court, Case No. CGC-19-579061; entitled

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Square, Inc. v. City and County of San Francisco et al.; the lawsuit involves a claim for

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a refund of gross receipts taxes paid to the City and County of San Francisco; other

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material terms of the settlement are: (1) the partial resolution of all claims for refund of

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gross receipts taxes, payroll expense taxes, and business registration fees filed by

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Square, Inc. and its related entities for tax years 2016 through 2018 and registration

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years ending June 30, 2016, through June 30, 2020; and (2) the agreement that Square,

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Inc. and its related entities shall take certain filing positions with respect to its gross

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receipts taxes, homelessness gross receipts taxes, payroll expense taxes, and

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business registration fees for tax years 2019 and subsequent years and registration

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years ending June 30, 2021, and subsequent years.

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Be it ordained by the People of the City and County of San Francisco:

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Section 1. Pursuant to Charter Section 6.102(5), the Board of Supervisors hereby

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authorizes the City Attorney to partially settle the action entitled Square, Inc. v. City and

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County of San Francisco et al., San Francisco County Superior Court, Case No. CGC-19-

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579061, by the payment of $7,017,894.75 to Square, Inc. and: (1) the partial resolution of all

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claims for refund of gross receipts taxes, payroll expense taxes, and business registration

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fees filed by Square, Inc. and its related entities for tax years 2016 through 2018 and

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registration years ending June 30, 2016 through June 30, 2020; and (2) the agreement that

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Square, Inc. and its related entities shall take certain filing positions with respect to its gross

City Attorney
BOARD OF SUPERVISORS

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receipts taxes, homelessness gross receipts taxes, payroll expense taxes, and business

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registration fees for tax years 2019 and subsequent years and registration years ending June

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30, 2021 and subsequent years. The lawsuit involves a refund of gross receipts taxes paid by

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Square, Inc. to the City and County of San Francisco.

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Section 2. The above-named action was filed in San Francisco County Superior Court

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on September 6, 2019, and the following parties were named in the lawsuit: Plaintiff Square,

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Inc. and Defendants City and County of San Francisco and José Cisneros, Treasurer and Tax

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Collector of the City and County of San Francisco.

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APPROVED AS TO FORM AND
RECOMMENDED:

RECOMMENDED:

DENNIS J. HERRERA
City Attorney

OFFICE OF THE TREASURER AND TAX
COLLECTOR

/s/ Scott M. Reiber
SCOTT M. REIBER
Chief Tax Attorney

/s/ José Cisneros
JOSÉ CISNEROS
Treasurer

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FUNDS AVAILABLE:

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/s/ Ben Rosenfield
BEN ROSENFIELD
Controller

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n:\taxlit\li2020\200241\01445827.docx

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City Attorney
BOARD OF SUPERVISORS

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