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Tax,
Government

Jan. 27, 2025

San Francisco wins tentative demurrer in alcohol tax lawsuit

A judge kept alive British beverage company Diageo's claim that San Francisco's tax on alcohol - in addition to the state tax - is preempted but otherwise dismissed much of the company's case.

A judge tentatively granted a motion to strike and demurrer for large parts of a $4 million alcohol tax case in which drinks giant Diageo seeks to overturn a rare rule, which it claims is unconstitutional, that allows liquor taxed by the state of California as well as in the city and county of San Francisco.

However, he kept alive the company's claim that the tax policy is preempted by the state Constitution.

Diageo, a UK based entity, seeks a refund from the city for...

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