Fernley Asks High Court to Keep Tax Suit Alive

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CARSON CITY, Nev. (AP) - The city of Fernley, which claims its been shortchanged for years by a complicated tax distribution system, is asking the Nevada Supreme Court to keep its fight for a bigger piece of the tax pie alive.

But lawyers for the state Tuesday countered a lower court judge had no authority to allow attorneys for the city to gather evidence in the case, arguing the city's legal hurdles are too great to overcome. They claim the case should be dismissed outright.

While the arguments focused on technical legal procedure, the stakes are high for Nevada's seventh largest city 30 miles east of Reno, as well as the myriad municipalities around the state.

Fernley claims that tax distribution system has not kept pace with its fast population growth.

Justices will rule later.