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Judge Nixes Teachers Union’s Business Tax Initiative

CARSON CITY, Nev. (AP) — A state judge in Carson City has struck down a Nevada tax initiative pushed by the state teachers union and other labor groups to raise money for education. The proposed measure could generate as much as $800 million for public education.

In a ruling issued Tuesday, District Judge James Wilson said the description of what the initiative would do if passed by voters was misleading and deceptive on several grounds and therefore is invalid.

The Nevada State Education Association was backing the measure to impose a 2 percent margins tax on businesses making $1 million or more annually.

A pro-business group called Committee to Protect Nevada Jobs challenged the measure, arguing the description of effect didn’t tell voters there was no guarantee funding for schools and students would increase.

The group must collect at least 72, 352 signatures by Nov. 13th in order to send the measure to lawmakers.

Copyright 2012 The Associated Press.

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