Lyft, the ridesharing giant, is suing the San Francisco's city government, accusing it of overcharging the company $100 million in taxes from 2019 to 2023.

The lawsuit, first filed Friday in California state court, alleges that San Francisco engaged in tax methodology that is “distortive and will grossly overstate Lyft’s gross receipts."

Specifically, the company's lawyers claim that the city taxed the total fare amount paid by passengers as revenue, rather than the percentage fee of each fare that Lyft gets paid by drivers.

Lyft's lawyers are seeking a refund of the overpaid taxes with interest and additional punitive compensation if they win. The lawsuit represents a broader legal debate over whether or not rideshare companies such as Lyft and Uber have repeatedly misclassified their drivers as independent contractors.

A spokesperson for the San Francisco City Attorney’s Office told the Chronicle today that their team "will review the complaint and respond accordingly."

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