Business tax is argued in court

Friday, Dec. 1, 2000 | 10:09 a.m.

CARSON CITY -- The teachers' union says chambers of commerce have "simply failed" to present evidence to have an initiative petition for a business profits tax to be declared unconstitutional.

The Nevada State Education Association says the chambers and some small businesses have presented a "whole series of arguments" without any supporting documents or testimony that would invalidate the petition.

But attorney Thomas Wilson, representing business, said the teachers' petition is defective and is unconstitutional because it would impose a personal income tax in Nevada.

Both sides presented their final briefs Thursday to District Judge Mike Griffin, who is expected to rule this month on the suit by business. Whatever the ruling, an appeal is expected to the Nevada Supreme Court.

The union gathered signatures on an initiative petition to impose a 4 percent tax on profits above $50,000 earned by Nevada businesses. The money would go toward education, including raises for teachers. If it is held to be valid, it will be presented to the 2001 Legislature, which must approve the plan within 40 days or it goes on the 2002 election ballot for the voters to decide.

Michael Dyer, attorney for the union, said the chambers have "used a hand grenade when they should have used a rifle."

"They have advanced a whole series of arguments without any apparent attempt to weigh their relative merits or the difficulties of proof," Dyer said.

But Wilson, among other things, argues the initiative is invalid because it imposes what amounts to a personal income tax, which is banned by the Nevada Constitution.