GROUP TO SUE TO GET PETITION TAKEN OFF BALLOT

Measure Would Repeal $833 Million Tax Increase Passed by Legislature Last Year

CARSON CITY -- A taxpayer group announced Monday it will sue to remove the "Ax the Tax" petition from the November ballot if it is found to qualify by Secretary of State Dean Heller.

The announcement was made by Fred Gibson, chairman of the Nevada Taxpayers Association, who said the group received approval of its board members to file a lawsuit challenging the constitutionality of the referendum petition.

Carole Vilardo, president of the taxpayer group, said the lawsuit would be based on the fact that sections of Nevada law that the group sponsoring the petition, Nevadans for Sound Government, wants repealed were not included on the petitions as required in the state constitution.

"People did not know what they were signing," Vilardo said.

The measure, pushed by George Harris of Las Vegas, is currently being checked by county clerks to determine if it has enough valid signatures to earn a spot on the ballot.  A decision is expected by Monday.

Harris said he expects the petition to qualify.  The group had been told its petitions -- one of which seeks to prohibit public officials from serving in the Legislature -- have a high validity rate, he said.

Harris, leader of Nevadans for Sound Government, said Vilardo is wrong about the text of the repealed sections, adding she will lose in court if a lawsuit is brought.

"Why, if her group is called the Nevada Taxpayers Association, is she protecting taxes?" he said.  "Why not repeal the taxes."

Harris said the taxpayers association will lose membership and credibility if it sues.

"The association appears to be advocating for larger government and higher taxes," he said.

Any effort to take away the right of the voters to have a say on the repeal will just anger them and help his cause, Harris said.

The Ax the Tax petition would repeal the $833 million tax increase passed by the Legislature in a marathon special session last year.  If a majority of the voters approve it in November, the repeal would go into effect immediately.

Vilardo said there will be problems no matter which way voters go on Harris' petition.  If the taxes are repealed, the Legislature will have to revisit taxes and spending, and there is no reason to believe it would be any easier to do next year than in 2003.

And if voters support the taxes, the various revenues, including live entertainment, cigarette, alcohol and real estate transfer taxes, could never be altered by the Legislature without voter approval.

"We can't win," Vilardo said.  "Whatever the voters do, we lose."

Any lawsuit would be filed in Carson City District Court.

Attorney Thomas "Spike" Wilson has been contacted by the group to prepare for a lawsuit, Vilardo said.

The taxpayers association board numbers 43.  For the board to make a decision, 60 percent must respond, and at least 55 percent of those must agree on a position.  In the Ax the Tax vote, 34 members responded, 71 percent of whom backed a lawsuit.

Harris said his group collected and turned in about 68,000 signatures for the tax repeal measure, which needs 51,337 to qualify for the ballot.  It passed the first hurdle when Heller said a raw count showed enough signatures.  A more detailed review is now under way.

The initiative petition process was used heavily by groups this year, and many of the measures are now embroiled in court actions.

Supporters of a marijuana legalization measure rejected by Heller are pursuing remedy in U.S.  District Court.  Two other measures -- to raise the minimum wage and eliminate frivolous lawsuits -- were also rejected by Heller.  Supporters won a round in district court, but that ruling is being appealed to the state Supreme Court.

The constitutionality question of the tax measure is not new.  It emerged when the petition drive was launched last year.

Heller advised Harris to amend his petition in November.

But Heller also told Harris then that he had no legal authority to tell him what he should include with his tax petitions.