The City and County of San Francisco were imposing telephone users taxes and access line taxes and related penalties and interest for tax periods June 1, 2009 through December 31, 2018 on Twilio Inc..

An ordinance to authorize a settlement by which the City will not impose additional telephone users taxes, access line taxes, and any related penalties and interest on Twilio Inc. for any periods through two months after the settlement is paid, and Twilio Inc. will collect and remit telephone users taxes and access line taxes in a certain manner for all subsequent periods. Twilio Inc. filed the lawsuit against the City and County of San Francisco and the settlement agreed upon is for $18,000,000.

Twilio Inc. will be refunded $18,000,000 and will not be subject to additional telephone users taxes and access line taxes and any related penalties and interest through two months post-settlement. Twilio Inc. agrees to collect and remit taxes as specified for all future periods thereafter.

The legislation is proposed to settle the lawsuit entitled Twilio Inc. v. City and County of San Francisco, filed on May 27, 2021. The claim involves a refund of taxes and related penalties and interest for over nine years.

The Board of Supervisors, pursuant to Charter Section 6.102(5), authorizes the City Attorney to settle the action as outlined.

N/A