Lyft Challenges San Francisco Over $100 Million Tax Dispute

The rideshare company claims the city misclassified driver payments as revenue, resulting in overcharges from 2019 to 2023.

Lyft has filed a lawsuit against San Francisco, alleging it was overcharged $100 million in taxes over a five-year period.
The company argues that the city incorrectly classified payments from passengers to drivers as part of Lyft’s gross revenue.
Lyft maintains that its revenue is derived from fees paid by drivers, not passenger fares, aligning with federal tax and SEC guidelines.
The lawsuit, filed in California state court, seeks refunds for the alleged overpaid taxes along with interest and penalties.
The case highlights broader debates about how gig economy companies like Lyft and Uber should be taxed, given their contractor-based business models.