Nation's Largest Taxpayer Group Slams Nevada Court for Setting Aside Citizen-Sponsored Tax Limit

7/11/2003

From: Pete Sepp of the National Taxpayers Union, 703-683-5700

ALEXANDRIA, Va., July 11 -- The Nevada Supreme Court's decision to override a citizen-initiated Constitutional tax limit and effectively force the Legislature to raise taxes drew a sharp rebuke today from the non-partisan National Taxpayers Union (NTU), a citizen group that has helped to enact such limits in more than a dozen states across the country. NTU has over 3,000 members in Nevada and 350,000 members nationwide.

"The Supreme Court's decision might as well have told everyday Nevadans to go to the back of the bus, because when it comes to the law, taxpayers are second-class citizens," said NTU Vice President for Communications Pete Sepp. "The black robes of this Court can't conceal the political agenda of the teacher unions and others who support a blank check for big government."

In 1996, Nevadans adopted a citizen-initiated Constitutional Amendment that requires either a 2/3 "supermajority" vote of the State Legislature or a majority vote of the electorate in order to increase state taxes. Late yesterday Nevada's Supreme Court, at the behest of Governor Guinn (R) and government employee unions throughout the state, held 6-1 that the duly-enacted "supermajority" limit could be suspended in light of the Legislature's failure to enact a tax increase that would fund the state's education budget.

Sepp, who authored a study of "supermajority" tax limits for NTU's research affiliate, contends that the Nevada Court's ruling could have "serious implications" for the 13 other states that have similar laws in effect.

Sepp observed that although the Court overrode -- rather than struck down -- the tax limit, "This poorly-reasoned ruling still sends a smug message of indifference to citizens throughout the nation. In the supposed sanctity of a courtroom, special interests can apparently trump the public interest more easily than they can in a Legislature."

Noting that a recall effort aimed at the Justices who issued the ruling might soon be launched, Sepp predicted, "Voters may yet be able throw off the gag that this Court placed on the public's rightful voice in fiscal policy. Perhaps a new Supreme Court would have more thoughtful members who respect all of the State's Constitution, including the parts that the big-spending establishment finds politically inconvenient."

NTU is a grassroots citizen organization founded in 1969 to work for lower taxes, less wasteful spending, and accountable government at all levels. The group's members actively supported Nevada's tax limitation initiative, whose chief sponsor, Jim Gibbons, is now a Member of Congress. Note: Sepp's study, NTUF Policy Paper 114, By Popular Demand: How Citizen-Driven Ballot Measures Have Changed Tax Policy for the Better, is available at http://www.ntu.org.