Nancy Pelosi is pressuring San Francisco’s Mayor Daniel Lurie to strong-arm Airbnb into dropping its $120M tax lawsuit against the city – a legal dispute over tax classification, not a refusal to pay taxes.
Airbnb’s argument is simple: they were misclassified and overpaid taxes between 2019 and 2022, and now want a refund plus a corrected treatment moving forward. And they're not alone – Uber, Lyft, and other large companies have filed similar claims totaling more than $320M.
This comes as SF stares down an $818M budget shortfall over the next two years. Instead of accepting cuts or layoffs, Pelosi and public sector unions are redirecting pressure toward Big Tech, calling on Lurie to extract concessions.
Lurie has shown reluctance to squeeze tech firms. SF’s downtown vacancies persist as many corporations have left the city in recent years, and Lurie’s administration has prioritized attracting companies, not alienating them. SF voters backed this approach by passing Measure M, which reduced tax burdens on major corporations like Airbnb – likely contributing to Airbnb's decision to sign a HQ lease extension through 2037 late last year.
The collision course is clear: If Lurie caves to Pelosi and union pressure, he risks scaring off the city’s biggest tax contributors. But if he enacts deep service cuts, he’s promised street protests and political backlash.
The question isn't whether SF needs the revenue – it's whether squeezing tech companies now undermines the city's long-term economic viability.
