Digital Realty Trust Inc. filed a lawsuit against the City and County of San Francisco claiming a refund of Early Care and Education Commercial Rents Tax and Homelessness Gross Receipts Tax.

The City and County of San Francisco authorizes the settlement of the lawsuit by paying Digital Realty Trust Inc. $1,858,150.71, and Digital Realty Trust Inc. and its related entities agree to take certain filing positions with respect to their Early Care and Education Commercial Rents Taxes for tax year 2021 and subsequent tax years.

The City and County of San Francisco will incur a financial cost of $1,858,150.71 as part of the settlement.

Settlement of the lawsuit avoids further litigation costs and resolves the claim for refund of the specified taxes.

The Board of Supervisors authorizes the City Attorney to settle the action as per Charter Section 6.102(5). The settlement was recommended by the City Attorney and the Office of the Treasurer and Tax Collector.

The City Attorney, with the recommendation from the Treasurer, is responsible for the legal settlement, and the Controller declares the availability of funds for the settlement amount.