Fernley sues state, Treasurer Marshall over distribution of taxes to city

Monday, April 9, 2012 | 11:14 a.m.

The city of Fernley has filed a lawsuit against the state of Nevada and Treasurer Kate Marshall, alleging it has been shorted on tax proceeds while it has grown during the last decade and a half, raising an issue that could very well affect other municipalities.

The suit is over the so-called Consolidated Tax (nicknamed the "C-Tax") that has been the subject of much legislative wrangling during the last few sessions. It is an amalgam of taxes distributed to local governments.

Here's the nub of the suit: "Despite experiencing population growth of approximately 250% since the C-Tax system was established, Fernley’s current C-Tax distributions are not significantly different from what it received as an unincorporated town in the late 1990s."

The suit lays out stunning comparisons to other cities and says Fernley has been "rebuffed" by lawmakers, who have not given the issue a meaningful vote.

It's an interesting case, which I have posted at right, and was filed by Josh Hicks, who used to work for the state as a gubernatorial chief of staff.

(Marshall is named because her office disburses public funds.)