Politics

Nevada Sued Over Business Subsidies

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(photo: Sean Whaley/special for KXNT)

(photo: Sean Whaley/special for KXNT)

tate south Tate South
Email Tate at tate.south@cbsradio.com
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CARSON CITY, Nev. (AP) — A conservative Nevada think tank has filed a lawsuit against the governor’s office of economic development, claiming subsidies to private businesses are unconstitutional.

The suit filed Wednesday in Carson City by Nevada Policy Research Institute argues that a Catalyst Fund created by the 2011 Legislature to entice businesses to come to Nevada amount to an illegal use of taxpayer dollars.

The lawsuit was filed on behalf of Michael Little, who says $1.2 million in subsidies committed to SolarCity puts development of his own alternative-energy business a disadvantage.

A lead attorney for NPRI’s Center for Justice and Constitutional Litigation argues the state Constitution prohibits the state from donating or lending money to most private interests.

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