New appeal filed over tax-hike vote

Kirsten Searer

Thursday, June 3, 2004 | 10:02 a.m.

Legislators have filed yet another appeal challenging the Nevada Supreme Court decision that could have allowed state lawmakers to approve a tax increase without constitutionally mandated two-thirds vote.

On Wednesday, they amended the argument they first made before the 9th U.S. Circuit Court of Appeals in April. The judges issued an opinion on May 12 that the issues involved in the lawsuit were moot.

California attorney John Eastman isn't giving up and said Wednesday he is asking the judges take another look.

The issue began last legislative session, when the state Supreme Court ruled that the Legislature could pass a tax increase without a two-thirds vote because the Legislature had a more compelling need to pass an education budget.

Ninth Circuit judges ruled that the issue was moot because the Legislature had long since passed a budget and any opinion would not change the outcome of the tax increase that ultimately passed.

Still, Eastman said, he's asking the judges to rule anyway so they can set a precedent. The lawsuit, he said, wasn't aimed to simply stop the tax increases passed last year.

"It was aimed at any legislative action, now or in the future, that would seek to raise taxes without the two-thirds vote," Eastman said.

If the 9th Circuit refuses to look at the case again, Eastman said, his clients could choose to appeal the case to the U.S. Supreme Court. Even if the lawsuit doesn't go any further, he said, the legislators established that federal courts have jurisdiction to look at this issue should it come up again.

"When we get back into a live controversy again with new tax increases adopted without a two-thirds vote, we can go back into federal court," Eastman said.