Lyft has filed a lawsuit against San Francisco, claiming it was unfairly taxed $100 million from 2019 to 2023. The company argues that the city's tax formula incorrectly includes passenger payments as part of Lyft's revenue, distorting its actual earnings. Lyft maintains that its revenue comes from what drivers pay to the company, not passenger payments to drivers, as drivers are considered customers, not employees. The lawsuit underscores ongoing debates about worker classification within the gig economy, and seeks a refund for overpaid taxes. San Francisco officials have not yet fully responded to the complaint.
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