Nevada Casino Group Files Court Challenge Of Tax Hike Plan

A major Nevada casino group filed a court challenge Monday against a ballot initiative by teachers calling for higher taxes on the biggest resorts to get more money for the state's K-12 school system.

The Nevada Resort Association, in a complaint filed in Carson City District Court, argued that the Nevada State Education Association description of its initiative is ``misleading, false, and fails to inform voters of all its material consequences.''

The resort association complaint says the plan goes beyond a 3 percent tax increase for big clubs by proposing a minimum state spending commitment on education _ and that's a separate issue for a separate ballot question.

The proposed 3 percent tax on gambling revenues would be collected from casinos that gross more than $1 million a month. It would generate at least $250 million a year.