The city of Spokane has filed suit against Fannie Mae and Freddie Mac, contending the corporations improperly claimed they were exempt from paying the state's real estate excise tax.

The lawsuits were filed this week in federal court, and officials for the city claim it has been cheated out of hundreds of thousands of dollars.

City Attorney Nancy Isserlis says that in the past four years Fannie and Freddie sold about 1,300 pieces of property in Spokane County and likely would have paid about $4 million in real estate taxes had they not claimed to be exempt. Most of the money would have gone to the state, but about $1 million would have been directed to local governments.

The Spokesman-Review says the case could have impacts across the state.