GOP tax challenge may be at an end

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Monday, June 28, 2004 | 9:24 a.m.

SUN CAPITAL BUREAU

CARSON CITY -- The legal challenge by Republican state legislators to the $833.5 million state tax increase in 2003 may be at an end.

John Eastman, attorney for the GOP lawmakers, said Friday the 9th U.S. Circuit Court of Appeals last week denied a petition for a rehearing on the case.

He said he will talk to his clients about further action but does not see carrying the case to the U.S. Supreme Court, which has already rejected the appeal once.

The Assembly at the 2003 Legislature was not able to pass a tax bill without the two-thirds required in the Nevada Constitution by the end of the fiscal year. The Nevada Supreme Court ruled the constitutional requirement to fund education was more important and that the Legislature could pass a tax bill with less than a two-thirds vote.

The Legislature eventually passed the tax bill by a two-thirds vote.

The 9th circuit court initially ruled that the issue was moot since the constitutional two-thirds vote was achieved.

Despite the unsuccessful court challenges, Eastman said the GOP lawmakers will be carefully watching in the 2005 session to stop any tax increase without the required two-thirds vote.