Teachers’ business profits tax petition has enough signatures

Brendan Riley

Tuesday, Sept. 26, 2000 | 9:24 a.m.

CARSON CITY - A signature check shows enough names to force the 2001 Legislature to consider a business profits tax sought by Nevada teachers, the secretary of state's office said Monday.

Susan Morandi, deputy secretary of state for elections, said only 44,009 valid signatures were needed on the school funding petition - and 63,795 were found to be valid.

Initially, nearly 87,000 signatures were turned in. The number was reduced as election officials throughout Nevada verified the names were those of registered voters. But Morandi said the final count was still far more than the minimum needed.

The tax proposal from the Nevada State Education Association now goes to the 2001 Legislature, which must act within the first 40 days of the session.

The plan would raise at least $250 million a year in new revenue for pay hikes, more teachers and other education initiatives.

The NSEA maintains the proposal won't hurt small companies or drive industry from Nevada. Businesses whose profits are less than $50,000 are excluded.

Businesses could pass the tax to consumers, but the NSEA says that might cost an average family only $7 more a year.

The proposed 4 percent business net profits tax was pushed by the teachers despite pleas from Gov. Kenny Guinn to scrap it.

The first-term GOP governor, whose 1998 candidacy was heavily backed by the casino industry, contends the petition drive would be divisive and destructive.

A report earlier this month showed the NSEA had spent $497,142 promoting the business tax initiative. The spending by the Quality Schools Alliance - the political action committee of the teachers' union - went for consulting and legal fees and signature-gathering.

The group reported collecting $678,394. The National Education Association gave $250,000 and Nevada teachers gave the rest. Each teacher is paying about $20 for the petition effort.

The Nevada Pro-Education Alliance - a coalition of businesses and trade associations opposed to the initiative - wasn't required to file a campaign finance report because the plan isn't on the November ballot.