The owner of two luxury bus transportation companies has filed a lawsuit against the state of New York, calling the MTA payroll tax unconstitutional.

The suit, filed in Suffolk County Supreme Court by William Schoolman, owner of Hampton Luxury Liner and Schoolman Transportation System, argues that the payroll tax was not passed by two-thirds of the state Legislature, which is required for any new special law.

The lawsuit also contends that the tax violated various articles of the state constitution and state laws.

“We are arguing that the MTA is a failed business model,” said Joe Campolo, Schoolman’s attorney, “and that the private sector is unfairly being relied upon to finance this failed business model.”

The payroll tax was passed earlier in the year, and it requires all businesses operating in the New York City area to pay a tax of 34 cents for every $100 paid in employee salaries.

Campolo added that Schoolman, who paid about $20,000 to the state in payroll taxes, is in essence subsidizing his own competition.

Schoolman’s companies provide luxury bus coach transportation between the Hamptons and New York City.

“We are seeking to have the bill repealed,” Campolo said, adding that it is unlikely Schoolman would get his money refunded.

Read the full lawsuit below or click here.