Nevada mining sues to block tax cap initiative
CARSON CITY -- A lawsuit filed by the Nevada Mining Association argues a proposed constitutional amendment to raise the cap on net proceeds taxes paid on minerals is misleading, fails to inform voters of consequences and sets up a "constitutional collision" with other property tax protections.
The lawsuit, filed Wednesday in Carson City, seeks to block an initiative backed by Las Vegas businessman Monte Miller from the ballot.
The tax initiative "goes far beyond what meets the eye, and Nevadans have a right to know the full impact of what they're being asked to sign," Nevada Mining Association President Tim Crowley said Thursday.
Miller's initiative group, Nevadans United for Fair Mining Taxes, wants to raise the tax cap to 9 percent of net proceeds, up from 5 percent. Mining companies pay a net proceeds tax on minerals, calculated after extraction and other business costs are deduced.
The initiative does not require the mining tax to be raised, but it increases the maximum percentage and would allow the Legislature to increase the rate that for decades has been limited by protections in the state constitution.
