RENO, NV -- An initiative that would create a new tax on businesses will be considered by the legislature. The Nevada Supreme Court ruled the wording of an initiative that would create the tax is satisfactory.
The wording of the initiative was being challenged as signatures were handed in to election officials in November.
The teachers union-backed proposal would create a margin tax on businesses making more than a million dollars a year. The initiative's backers said the funds would be used for Nevada schools.
The Reno-Sparks Chamber of Commerce said the idea is misleading and dangerous.
"This would affect family-owned businesses of all sizes, even those that operate in the red and there is no guarantee that the taxes raised under this measure would go to education," Tray Abney of the Chamber said in a statement.
Lynn Warne of the Nevada State Education Association said the money makes up for the massive cuts to schools.
"(The court) supported the initiative process and allowed more than one-hundred thousand Nevadans' voices to be heard down at the legislature," she said.
If lawmakers do not act on the proposal in forty days, the matter will be voted on by the public.
Governor Brian Sandoval has said he does not support creating the tax.