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sponsoring the petition, Nevadans for Sound Government, wants repealed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about the text of the repealed sections, adding she will lose in court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 If the taxes are repealed, the Legislature will have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.