District Attorney George Gascon said "the offensive ads serve no purpose other than to denigrate our city's Arab and Muslim communities," the San Francisco Chronicle reported Tuesday.
Gascon was joined by Mayor Ed Lee and seven supervisors in criticizing the ads paid for by the controversial American Freedom Defense Initiative.
Muni believes a First Amendment court decision obligates it to accept the advertising.
The transit agency said it would dedicate the $5,000 in revenue from the ads to the Human Rights Commission for a study of the impact of discrimination on Arab and Islamic communities in San Francisco.
Notable deaths of 2014 [PHOTOS]