Lawyers representing Nevada's teachers union and business interests around the state filed their final arguments Thursday over whether a proposed 4 percent tax on businesses is constitutional.
Carson District Judge Mike Griffin has promised to decide by Dec. 6, saying that will give the Nevada Supreme Court time to finish its review before the start of the 2001 Nevada Legislature Feb. 5.
The lawsuit seeks to block the teachers' union petition from being presented to the 2001 Legislature as a mandate. If the petition is valid, lawmakers must act on it in 30 days or the issue goes to the voters in 2002.
Thomas "Spike" Wilson, representing businesses, chambers of commerce around the state and the Nevada Taxpayers Association, argued that the tax wouldn't generate enough money to cover the amount it spends. That, he said, violates the Nevada constitution, which requires any initiative or legislative bill pay for the programs it puts in place.
He focused on the petition's requirement that would force the state to spend half its general fund on public education.
He cited testimony during the hearing on the lawsuit estimating the business tax would fall anywhere from $102 million to $451 million short of covering that amount of money.
But Mike Dyer for the Nevada State Education Association said the Nevada Supreme Court has held in the past that it should not interfere with an initiative before it is presented to the voters unless it is patently unconstitutional.
He argued the initiative can be interpreted as constitutional and applied within the law - even the disputed 50 percent requirement.
He said exactly how that will work "will not be known and cannot be known until the revenues are actually received and the expenditures are actually made."
