GMC

A municipality imposed a business tax upon a corporation’s local selling activity. (S.F. Mun. Code, pt. III, §§ 1002.2, 1004.08, 1004.13.) The corporation claimed the tax interfered with commerce by discriminating in favor of local manufacturers and sued for both a refund under state law and damages under federal civil rights law. (Gov. Code, §§ 935, subd. (a), 940.4, 945; S.F. Mun. Code, pt. III, former § 1017; 42 U.S.C. § 1983 .) On cross-motions for summary judgment, the trial court entered judgment for the municipality. (Code Civ. Proc., § 437c.) We reverse. We follow the Second District in holding that a business tax that differentiates between in-city manufacturers and out-of-city manufacturers violates state and federal commerce protections. (General Motors Corp. v. City of Los Angeles (1995) 35 Cal.App.4th 1736, 1741-1742, 1752 [ 42 Cal.Rptr.2d 430 ] (General Motors Corp.).) The corporation is entitled to a full refund of the contested business taxes. The tax refund provides an adequate remedy and thus precludes any relief or attorney fees under federal civil rights law.

Facts

The City and County of San Francisco (City or San Francisco) imposes a tax upon…