SEATTLE -- A class-action lawsuit has been filed against the Seattle-area public transit agency, claiming its collection of car-tab taxes is not allowed because the 2015 law that put a public transit expansion on the ballot is unconstitutional.
The lawsuit filed Tuesday by seven Seattle-area residents is seeking for Sound Transit to pay back $240 million in car-tab revenue.
The lawsuit centers on how car-tab taxes are collected by the agency, which uses a system that estimates a car's value by inflating the value of newer cars, resulting in higher taxes.
The lawsuit claims that the 2015 law references an outdated formula for calculating car-tab fees.
Sound Transit spokesman Geoff Patrick says the agency is reviewing the suit and it's confident in the validity of the law.