Response filed to lawsuit against mining tax measure

CARSON CITY -- A group pushing an initiative to raise the cap on Nevada mining taxes says a lawsuit seeking to block the measure lacks merit.

In a response filed Wednesday in state court in Carson City, attorney Maggie McLetchie says the petition filed by Nevadans United for Fair Mining Taxes doesn't raise taxes, but gives the Legislature and the governor authority to do so.

Net proceeds taxes paid on minerals are capped at 5 percent under the Nevada Constitution. The petition would raise the limit to 9 percent.

The Nevada Mining Association is opposing the initiative backed by conservative Las Vegas businessman Monte Miller. The association argues the language is misleading and doesn't inform voters of potential consequences.

A court hearing is scheduled next week.