State Supreme Court lays off tax initiative

Thursday, Feb. 8, 2001 | 10:10 a.m.

CARSON CITY -- The Nevada Supreme Court may not decide the constitutionality of an initiative petition that seeks to impose a business tax to funnel more money to the public schools.

Associate Chief Justice Cliff Young suggested the petition should be considered first by the Legislature and then by the voters before the constitutionality is decided.

"Why don't we wash our hands of this until it runs its legislative course?" questioned Young, who presided over a one-hour hearing on the issue Wednesday.

The Nevada State Education Association, a union of schoolteachers, successfully circulated the initiative petition to levy a 4 percent tax on business income of more than $50,000.

It was presented to the Legislature Monday and lawmakers have 40 days to act. If the petition is not passed, it goes on the election ballot in 2002.

The tax is opposed by a group of businesses, which filed suit to test its constitutionality.

After the hearing, Kami Dempsey, the spokeswoman for the business coalition, said she thought the hearing went well. Especially telling, she said, was the comment by Young, who indicated he thought this was a personal income tax, prohibited by the Nevada Constitution.

"That was a huge statement," said Dempsey of Las Vegas. She hoped for a quick ruling because legislative hearings begin Feb. 15 on the tax.

Ken Lange, director of the teachers union, said oral arguments are "the icing on the briefs" that are filed beforehand. He said he was confident the petition was on "firm ground" and that it "can be interpreted in a constitutional manner."

The petition was held to be constitutional by District Judge Mike Griffin of Carson City and the business interests appealed to the Supreme Court.

The court took the arguments under submission and did not indicate when it would rule.